Global plasma sales grew by 8.2% in 2015, the broker notes, up from 7.1% in 2014. Recovering from its earlier Ig recall, Octapharma saw the strongest growth at 12.7%. A step-up in manufacturing capacity led Baxalta to 10.0% growth, with market leader CSL posting 8.0%.
On a structural cost advantage, CSL is widening the efficiency gap, the broker notes. The push from smaller players also now seems to be fading. Accelerating industry growth makes the broker increasingly more positive on its 12-month view for CSL. Outperform and $115 target retained.
Sector: Pharmaceuticals & Biotechnology.
Target price is $115.00.Current Price is $101.25. Difference: $13.75 – (brackets indicate current price is over target). If CSL meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).