CSL (CSL) CMD 2025 Part 1 summary

Strategic outlook and market context

• Influenza's complexity offers opportunities for strategic differentiation in vaccine development and delivery.

• U.S. immunization rates have declined significantly post-pandemic, with 60 million fewer people immunized annually, leading to the worst flu season in 15 years.

• Market recovery in the U.S. is expected in the medium term, acting as a growth accelerator, while immunization rates have stabilized at pre-pandemic levels outside the U.S.

• Stakeholders are mobilizing with educational programs, policy, advocacy, and evidence-based recommendations to address vaccine hesitancy.

• Global influenza vaccine market share has grown from $751 million in FY16 to a projected $2 billion in FY25, outpacing competitors.

Differentiation strategy, technology, and product innovation

• Differentiation is driven by advanced vaccine technologies, unique go-to-market strategies, and a customer-centric approach.

• Portfolio includes MF59-adjuvanted and cell-based vaccines, with Flucelvax showing superior protection in real-world studies.

• aTIVc, an adjuvanted trivalent cell-based vaccine, is in late-stage development with expected approvals in the U.K. and E.U. by FY 2026, and pipeline innovations target expanded age indications.

• Real-world evidence and robust industrial networks support market shaping, rapid product launches, and preferential recommendations in 19 countries.

• Manufacturing excellence is demonstrated by three global facilities, a CMO network, and capacity for 110 million seasonal and half a billion pandemic doses, supporting both seasonal and pandemic supply.

Growth drivers, opportunities, and future plans

• Near-term U.S. growth opportunities include pediatric and hospital system segments, leveraging differentiated products.

• International expansion targets senior populations in Germany, France, and the Nordics, supported by a growing sales force.

• Market value is expected to increase as standard vaccines are converted to higher-value differentiated products, potentially doubling target values.

• Advance purchase agreements, recurring reservation fees, and a pandemic preparedness business model provide revenue stability and strong performance, including a 90% share of H5 supply in FY25.

• Heritage of consistent outperformance and value creation is supported by a just-in-time supply chain and mass immunization capabilities.