CSL injects $2.3b into US for valuable blood plasma
Australia’s largest biotech company plans to expand its presence in the US with a US$1.5 billion ($2.3 billion) investment that will allow it to produce more treatments derived from blood plasma collected in the states.
The injection of funds could also potentially help CSL avoid or mitigate future drug tariffs imposed by US President Donald Trump.
Shares of Australia-based CSL tumbled in late September after Mr. Trump threatened to impose 100 percent tariffs on drug imports if companies did not establish manufacturing facilities in the United States.
Mr. Trump’s Truth Social post said the tariffs would go into effect on Oct. 1, but they were not implemented even though the U.S. Commerce Department opened an investigation that could have led to import duties.
CSL’s announcement late Tuesday night made no mention of tariffs or Mr. Trump, but highlighted the “hundreds of high-quality American jobs” its investment would deliver over the next five years.
“The United States is the world’s leading source of plasma, the key component of plasma-derived therapies,” said Paul McKenzie, CSL CEO and managing director.
“These important drugs are often the most effective or only treatments available for many rare or serious diseases.
“By expanding our onshore manufacturing capacity in the U.S., we are deepening our commitment to patient care, creating high-quality jobs, and driving innovation in the U.S.”
The United States is one of the few countries where it is legal to pay patients for blood plasma.
CSL uses it to create life-saving treatments for patients with bleeding disorders, immune deficiencies, or suffering from trauma or burns.
The multibillion-dollar new investment will support CSL Behring’s existing blood plasma fractionation facility in Kankakee, Illinois, but CSL has not yet decided whether the new facility will be located there or elsewhere.
Melbourne-based CSL said it has invested $3 billion in the US since 2018 and added 6,500 new US jobs, bringing its total headcount in the US to nearly 19,000, or about two-thirds of CSL’s total workforce.
CSL shares on the ASX were trading around $180 on Tuesday.
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