Global immunology company Argenx has announced the expansion of a trial, the outcome of which is potentially negative for CSL, warns Citi.
The products, if successful, have the potential to disrupt the existing IG suppliers’ sales for neurology, as materially lower IG revenue would have a disproportionate impact on the “last litre” economics of the industry, explains the broker.
Due to the vagaries of the targeted disease in the trial and the limitations of the trial itself, Citi makes no changes to forecasts, but maintains a watching brief.
The Neutral rating and $320 target are unchanged.
Sector: Pharmaceuticals, Biotechnology & Life Sciences.
Target price is $320.00.Current Price is $274.33. Difference: $45.67 – (brackets indicate current price is over target). If CSL meets the Citi target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
