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CSL (ASX:CSL) will be wielding as much as $2.3 billion as a weapon against Donald Trump’s U.S. tariffs, with the biopharmaceutical titan looking to expand its presence State-side through to 2030 through capital investments.
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Trump announced tariffs of at least 25% on all pharmaceuticals and semiconductors back in February, with those to come into effect over the course of the year. CSL has been looking for ways to avoid the tolls ever since.
The idea behind CSL’s latest move is that the $2.3B injection (US$1.5bn) will “generate hundreds of high-quality American jobs” – which Trump’s team is sure to like – as well as strengthen manufacturing capabilities in the union, and most importantly for CSL, “help secure the U.S. supply chain.”
“The U.S. is the world’s leading source for plasma, the main component of plasma-derived therapies,” CSL’s chief executive, Paul McKenzie, said today.
“These important medicines are often the most effective or only therapies for many rare or serious diseases. By expanding our onshore capacity in the United States, we are then deepening our commitment to patient care.”
CSL has already invested as much as $3 billion into its U.S. operations over the last seven years and employs some 19,000 workers State-side. That’s as much as 65% of its total workforce; most of the rest are in Australia.
The pharma giant’s push into America comes as it faces a brewing civil war among shareholders. CSL’s share price sagged to a decade low last month due to poor vaccine demand in the U.S. and China ordering less albumin. That then led to investor protests and a second strike against the board.
To date, CSL has shaved as much as -36% value; shares are at $180.
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