CSL Delays Flu-Vaccine Spinoff, Cuts Guidance As U.S. Vaccination Rates Decline

By Mike Cherney

SYDNEY--Australia-based pharmaceutical company CSL is delaying a plan to spin off its flu-vaccine business and cut its annual guidance amid declining vaccination rates in the U.S.

CSL previously planned to spin off Seqirus, its flu-vaccine unit, in the current financial year. But ahead of its annual shareholder meeting Tuesday, CSL said the plan was being pushed back until it believed it could maximize shareholder value. It didn't provide a specific timeline.

"In the longer term, the strategic direction for both CSL and Seqirus is unchanged," Chair Brian McNamee said. "Separation continues to be the preferred approach."

CSL said flu-vaccine rates in the U.S. are falling more than it expected, reflecting a shift in public attitudes toward vaccines in recent years. In the current flu season, CSL expects U.S. vaccination rates to decline by 12% for the overall population and by 14% for people more than 65 years old.

CSL said Seqirus's overall revenue for fiscal 2026, the current financial year, would decline by mid-teens, versus the previous outlook of revenue declining in the high single digits.

That's impacting the broader bottom line for CSL, where the main business involves collecting blood plasma and using it to make important medications. The company said overall revenue growth in fiscal 2026 would be 2% to 3%, compared to prior guidance for 4% to 5% growth. A key measure of net profit, known as Npata, is now expected to grow 4% to 7%, versus prior expectations for growth of 7% to 10%.

CSL said the cut to its annual guidance also reflected the impact of cost containment measures in China, which is reducing demand for albumin.

CSL dampened expectations for future growth. Due to uncertainty in the U.S. flu vaccine market, CSL said high single digit growth in Npata is a more appropriate expectation for the company until the vaccine market improves.

In August, CSL unveiled a sweeping corporate restructure that, aside from the spinoff, involved cutting up to 15% of its staff. At the time, the company said it aimed to simplify its operating structure amid a challenging and volatile environment, which also included the threat of U.S. tariffs.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

October 27, 2025 19:32 ET (23:32 GMT)