CSL Unveils $1.5B Investment to Expand US Plasma Manufacturing

CSL, the Australian biopharma giant, has announced plans for a significant expansion of its U.S. plasma-based manufacturing capabilities. The company will invest approximately $1.5 billion over the next five years, aiming to strengthen its domestic production capacity and create hundreds of high-quality American jobs.

Strategic Investment in Plasma Therapies

The investment, which remains subject to approval by CSL's board of directors, reflects the company's commitment to addressing the growing clinical need for long-term supply of immunoglobulin. These plasma-derived therapies are critical for treating various rare and serious diseases, often serving as the most effective or only available treatment options.

Paul McKenzie, CEO of CSL, emphasized the importance of this move, stating, "The U.S. is the world's leading source for plasma, the main component of plasma-derived therapies. By expanding our onshore production capacity in the U.S., we are deepening our commitment to patient care, creating high-quality jobs, and driving innovation in the U.S."

Bolstering U.S. Presence and Supply Chain

CSL's expansion plans come at a time when many global pharmaceutical companies are increasing their investments in U.S. manufacturing. This trend has been partly influenced by previous threats of tariffs on imported pharmaceuticals during the Trump administration.

The company already maintains a significant presence in the United States, with CSL Behring, its plasma therapies unit, headquartered in Pennsylvania. Since 2018, CSL has invested over $3 billion in its U.S. operations and currently employs nearly 19,000 people in the country, representing about 65% of its total workforce.

CSL Behring operates hundreds of plasma donation centers across the U.S. and manages a state-of-the-art manufacturing plant in Kankakee, Illinois. The new investment is expected to further strengthen the company's U.S. supply chain for plasma-derived medicines.

Strategic Realignment Amid Market Challenges

This expansion of plasma manufacturing capabilities comes as CSL navigates challenges in its influenza vaccine division, CSL Seqirus. The company recently announced plans to separate CSL Seqirus as part of a restructuring initiative aimed at saving $500 million to $550 million over the next three years.

However, due to heightened volatility in the U.S. influenza vaccine market, CSL has reconsidered the timing of the proposed demerger. Brian McNamee, CSL's chairman, explained that current market conditions would not allow for the full realization of Seqirus' value potential under the previously proposed timeline.

The focus on expanding plasma-based manufacturing aligns with CSL's strategy to concentrate on its core strengths in plasma therapies, which constitute the majority of the company's sales. This move is expected to reinforce CSL's position in the treatment of rare and serious diseases, while also addressing the growing demand for immunoglobulin therapies.