CSL Limited has postponed the spinoff of its flu vaccine division, Seqirus, as volatile US market conditions and a steeper-than-expected decline in vaccination rates undermine the company’s original timeline. The separation, which was initially slated for completion by June 2026, was put on hold following CSL’s decision that current market instability would prevent the company from fully capturing Seqirus’ value potential for shareholders.
The company’s annual general meeting brought confirmation of the delay, with executives citing a 12% drop in overall US seasonal flu vaccinations and a 14% decrease among those aged 65 and older this season. This falloff in demand has been compounded by waves of vaccine skepticism across the country, contributing to reduced public uptake and weaker sales. As a result, CSL revised its annual growth target for net profit to between 4% and 7%, sharply below previous forecasts of 7% to 10%.
Beyond the dynamics of the flu vaccine market, CSL is also facing dampened revenue in plasma and albumin products, partly due to cost containment hurdles in China. Nevertheless, company leadership reiterated their commitment to completing the Seqirus separation once a more favorable climate emerges, affirming a “long-term” intention to spin off the business.
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