Funded via a combination of a private placement, a shareholder purchase plan and a mixture of cash and debt, CSL will pay -US$11.7bn for Switzerland-based specialty drug company Vifor Pharma.
The broker doesn’t agree the deal suggests the core plasma business is ex-growth, but rather provides a defensible specialty product portfolio with strong market positions and growth opportunities. Add rating is maintained. Target price rises to $334.7 from $324.4.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $334.70.Current Price is $272.68. Difference: $62.02 – (brackets indicate current price is over target). If CSL meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).