Credit Suisse observes specialty sales for CSL Behring have grown around 15% per annum since FY13, driven in part by Kcentra. The broker believes this product is increasingly used off label to reverse other anti-coagulants including NOAC and control bleeding in trauma situations.
This usage for NOAC reversal is unlikely to come under pressure for more than two years and the broker estimates around 40% of Kcentra sales are coming from NOAC reversal. Yet, sales growth is expected to start slowing heading into FY20 and be in mid single digits by FY21.
Credit Suisse maintains a Neutral rating and raises the target to $199 from $192 because of FX changes.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $199.00.Current Price is $212.50. Difference: ($13.50) – (brackets indicate current price is over target). If CSL meets the Credit Suisse target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
