There’s a question mark about over the CSL Limited (ASX: CSL) share price with ongoing troubles with the COVID-19 vaccines.
What has happened with CSL and vaccines?
CSL hasn’t had much luck with its involvement with COVID-19 vaccines. The local vaccine hopeful, the University of Queensland, was cancelled because the UQ vaccine was bringing up false positives when it came to HIV tests.
There are now questions marks about the AstraZeneca plc (LON: AZN) COVID-19 vaccine because of concerns relating to rare blood clots. Due to this, the UK government’s joint committee on vaccines and immunisation (JCVI) said that adults under 30 will be offered an alternative, because the reward – risk ratio is not as great as it is for older adults.
At this stage the Australian government hasn’t made any decisions, but it’s reviewing the findings of the UK and European regulators.
Australia has been struggling to get any external supply of COVID-19 vaccines, with the jabs being in high demand in countries that are being ravaged by the pandemic in the northern hemisphere. The major hope is that CSL can manufacture millions of the AstraZeneca vaccine locally and then the country wouldn’t be reliant on imports.
But the blood clotting news, as well as potentially lower effectiveness compared to other vaccines, could cause some difficulties for CSL. Some Australian states have blamed the federal government for the lack of progress with vaccinations being rolled out.
Should investors worry about the CSL share price?
The vaccination manufacturing is important task for CSL, but it’s not the only source of earnings. The biotech company is a healthcare giant, it generates huge amounts of earnings for from its other products such as non-COVID vaccinations and biotherapies.
CSL’s role in society is very important. We all want to stay alive and healthy. That’s why CSL invests around 10% of its revenue each year into research and development (R&D) to make new products and help people.
Whilst the AZ vaccine may be struggling a bit, the other vaccines will help CSL’s plasma operations in the US get back to a new normal. The weakness of the CSL share price over the last few months could prove to be a long term buy opportunity. However, there are other ASX growth shares that may be able to generate stronger returns thanks to their smaller size.
