CSL profit up 30pc, to outlay $3.5b for Talecris

Australia's top biotech company CSL has reported a 30 per cent increase in profits for the 2008 financial year and has agreed to buy US plasma business Talecris for $3.5 billion.

CSL is the second largest blood products company in the world and Talecris the third.

"Talecris is highly complementary to CSL's existing business," CSL's managing director, Dr Brian McNamee, said. "The acquisition will make CSL a stronger competitor in the highly competitive plasma therapeutics market."

Talecris operates 56 plasma collection centres and two manufacturing facilities in the US. It also manufactures Gamunex, an IV-administered immunoglobulin for immune disorders and Prolastin, a blood treatment for people with alpha-1 PI deficiency, a hereditary disorder that often causes emphysema.

It also produces a range of hyperimmunes and albumin products.

Talecris generated sales of approximately $1.4 billion for the financial year and is headquartered in North Carolina. The deal awaits anti-trust approval.

In its full year results, CSL reported revenues of $3.8 billion, up 15 per cent on last year, with profit after tax of $702 million, up 30 per cent on last year.

Sales of and royalties from cervical cancer vaccine Gardasil brought in $394 million for the company. Other highlights were approvals for CSL's own IGIV, Privigen; a doubling in production capacity for its flu vaccine, along with US FDA approval for the vaccine under the brand name Afluria; approval by the TGA for Panvax, a bird flu vaccine; and a licensing deal for a rheumatoid arthritis antibody with MedImmune/AstraZeneca.

"This is a fine result despite absorbing the impact of significant adverse currency movements," McNamee said.

"Global demand for our plasma therapies continues as we enter new markets, develop new therapies and find new indications for existing therapies."

Research and development expenditure for the year was $225 million, up 18 per cent. McNamee said he expected R&D investment to increase next year as well, to around $265-$275 million.

He forecast net profit after tax for next year of between $810m and $850m.