Earnings reports from drug companies Merck and GSK showed strong growth for Gardasil and Cervarix, translating into around US$35m in royalties for CSL, in line with the broker’s expectations. Meanwhile, US industry data show strong IG growth is still evident.
The broker retains Buy and a $175 target for CSL.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $175.00.Current Price is $170.60. Difference: $4.40 – (brackets indicate current price is over target). If CSL meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).