CSL Reduces R&D Department, Increases External Alliances
ByAinvest
Wednesday, Jul 16, 2025 3:53 am ET1min read
CSL--
CSL, which was founded more than a century ago as a government laboratory focusing on manufacturing vaccines, has invested around $5.8 billion in its R&D division over the last five fiscal years. The company's most profitable business, CSL Behring, is underpinned by this significant investment. The downsizing plan is aimed at streamlining operations and boosting efficiency [2].
The company stated that it is reorganizing its R&D structure to foster collaboration, reduce duplication, and improve efficiencies. A spokesperson for CSL noted that the company will increasingly depend on a more optimal mix of internal capabilities and external partnerships to build and deliver its R&D pipeline, which will necessitate a smaller global internal workforce in the future [1][2].
CSL continues to expect annualized double-digit earnings growth over the medium term, despite a slowdown in profit growth in the first half of fiscal 2025. The company will disclose further details of its R&D downsizing plan in its full-year results on August 19 [2].
References:
[1] https://seekingalpha.com/news/4467518-csl-will-reduce-its-rd-department-increase-external-alliances-reuters
[2] https://www.marketscreener.com/quote/stock/CSL-LIMITED-6492492/news/Australian-biotech-CSL-to-trim-R-D-division-rely-on-external-partnerships-50499348/
CSL Ltd, an Australian biotechnology firm, plans to downsize its research and development (R&D) department across six international sites and increase its reliance on external collaborations. This move follows a report by Reuters on Tuesday. The exact details of the downsizing plan and external partnerships are not specified.
Australian biotechnology firm CSL Ltd has announced plans to downsize its research and development (R&D) division across six international sites and increase its reliance on external collaborations. This move follows a report by Reuters on Tuesday. The exact details of the downsizing plan and external partnerships are not specified [1][2].CSL, which was founded more than a century ago as a government laboratory focusing on manufacturing vaccines, has invested around $5.8 billion in its R&D division over the last five fiscal years. The company's most profitable business, CSL Behring, is underpinned by this significant investment. The downsizing plan is aimed at streamlining operations and boosting efficiency [2].
The company stated that it is reorganizing its R&D structure to foster collaboration, reduce duplication, and improve efficiencies. A spokesperson for CSL noted that the company will increasingly depend on a more optimal mix of internal capabilities and external partnerships to build and deliver its R&D pipeline, which will necessitate a smaller global internal workforce in the future [1][2].
CSL continues to expect annualized double-digit earnings growth over the medium term, despite a slowdown in profit growth in the first half of fiscal 2025. The company will disclose further details of its R&D downsizing plan in its full-year results on August 19 [2].
References:
[1] https://seekingalpha.com/news/4467518-csl-will-reduce-its-rd-department-increase-external-alliances-reuters
[2] https://www.marketscreener.com/quote/stock/CSL-LIMITED-6492492/news/Australian-biotech-CSL-to-trim-R-D-division-rely-on-external-partnerships-50499348/
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