Sunday, 3 March 2024

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Here’s Why CSL Shares Dropped Today – TipRanks Financial Blog

Here’s Why CSL Shares Dropped Today – TipRanks Financial Blog

Shares of CSL Limited (AU:CSL) dropped over 5% today after the biotechnology company faced a setback in a Phase 3 trial of a key heart drug. The company’s results for the Phase 3 AEGIS-II trial of its CSL112 (apolipoprotein A-I [human]) drug did not meet the desired primary efficacy outcome.

CSL is a multinational biopharma company researching and developing drugs and vaccines in blood plasma derivatives, antivenom, and cell culture reagents.

Further Details About CSL112’s Trial

CSL112, the company’s investigational cholesterol efflux enhancer, was considered the most promising proposed drug in the company’s pipeline. Its purpose was to reduce the risk of major adverse cardiovascular events (MACE) in patients after an acute heart attack.

CSL’s aim to reduce the recurrent cardiovascular events in the 90-day high-risk period that follows a heart attack compared to placebo was unmet. Hence, CSL is not planning for any near-term regulatory filing of the drug. Having said that, the trial did not show any adverse safety or tolerability concerns. A favourable trial outcome would have done wonders for CSL as analysts estimated CSL112 to contribute roughly $3 billion in annual revenues at its peak levels.  

The trial was conducted on more than 18,200 patients from 49 countries. The company said that it is studying and fully analyzing the results data to understand if there remains any future development path for CSL112.  

Is CSL Limited a Good Stock?

Recently, UBS analyst Laura Sutcliffe reiterated a Buy rating on CSL shares with a price target of AU$350 (20.9% upside). Following the news, Sutcliffe said that she had not included CSL112 in her estimates, and hence, its failure does not impact her view on the stock. The analyst is awaiting how CSL will take the route from here forward, as CSL112 was presumed to be a solid catalyst for margin improvement and share trajectory.

Overall, with eight unanimous Buy recommendations, CSL stock commands a Strong Buy consensus rating on TipRanks. The CSL Limited share price forecast of AU$326.28 implies 12.6% upside potential from current levels.


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