CSL shares tank after it turns out to be another big, dumb company

What is one of the country’s innovative high -tech production at a time when the country’s chatter classes and business world focuses on developing productivity and innovation? Lazy, mediocre Australian companies to participate in games that sign.

CSL is a great Australian success story: a one-time community vaccine, customized by the Keating government with a buoy worth $ 294 million, is a blood products and anti -zemin agency. It was valued more than $ 131 billion as of Monday. However, at the closing of Tuesday, he lost his shares more than 17% and 20 billion dollars – the result of the company’s vaccine arm, CSL seqirus and 3,000 employees announced that he had moved away from vaccinations.

From where? There was nothing to claim that such a dramatic segment was needed in the 2024-25-year results of the company. The gain and income were intact, the dividend increased, and the appearance was normal for a company that had a reputation in stable and well -running.

The only problem for CSL is in the United States. Company, consequences This CSL Seqirus “was a significant impact on low influenza vaccination rates, especially in the United States”.

This is despite the US flu season (Flu vaccines are a CSL Seqirus expertise) in 2024-25 years, especially severe-reality in the years ”Worst in the registration“It probably worsened with low vaccine rates. US vaccination rates decreaseEspecially among children, he saw that many rare diseases roar in US communities and killed people in their awake. US Health Secretary Robert F. Kennedy Jnr’s vaccine skepticism (To put generously) strengthened a more open hostility Vaccines from other government officials.

CSL’s share price, just as Donald Trump’s presidential elections emerged as a possible winner, this month reached a summit of $ 311 a year ago. Trump’s plans for large tariff barriers around the US were seen as a negative for CSL – and Mad King’s vaccine skepticism and It receives support from anti -vaccine groups.

For a company in Australia, the rationale for the great deductions due to its research and development in key products and building positions It was offered yesterday Dr. Paul McKenzie took a long time in a business speech that we used to from the cavalry of second -class CEOs and boards led by the Great Australian oligopolist companies.

Look at the clichés:

The transformational initiatives we have announced today will further reshape and simplify the business, renewing the focus of CSL on our basic forces, and ultimately sustainable, profitable growth… Increased patient demand, unique competition positions and scalable platforms… We optimize our basic and effective productions…

He must have received at least two seconds chatgpt to produce pabulum.

And like mediocre oligopolists, CSL loves the purchase of a stock: “In 2026, it is expected to increase with $ 750 million in the financial year and gradually increase in the medium term. The program will increase capital efficiency and increase shareholding returns.”

How much will it flow to innovation, research and new products. You can turn an Australian company into a global brand, but instead of investing in the next lock product or new technology, you cannot eliminate shareholders with feeding shareholders with greater returns than ever.

However, CSL resulted in the worst of both worlds: even Sharemarkets was not affected. After the announcement of Tuesday, Shaw and Partners’ Senior Investment Advisor Craig Sidney, Reuters He suspects that the spin-offs of the vaccines can unlock some value, and that they can be “positive” and “the cutting of personnel is normally positive”, “will have an impact on the growth of earnings and that the market seems to be focused on the moment”.

In the United States, there is not much about the wide tide of washing stupidity, and it brings dead children and then early mortality. But no one forces CSL to behave like every great stupid oligopolist in Asx-even their hissedars.