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CSL Slashes Outlook, Delays Seqirus Spinoff as US Flu Vaccinations Slide

CSL attributes the setback to a sharper drop in US flu-shot uptake linked in reporting to Robert F. Kennedy Jr.

Overview

  • CSL now forecasts a 12% decline in US influenza vaccination rates and a mid-teens fall in Seqirus flu vaccine revenue, worse than its previous high single-digit expectation.
  • The company downgraded FY26 revenue and earnings guidance and its shares fell more than 16%, erasing up to $17 billion in market value.
  • CSL postponed the planned demerger of Seqirus, saying it is no longer targeting completion in FY26 and will revisit timing when market conditions improve.
  • Chair Brian McNamee told the annual meeting the double-digit drop in US vaccination rates came as a shock after prior declines and last year’s severe disease season.
  • Shareholders delivered another strike against the remuneration report as two proxy advisers urged a vote against it, while an RBC analyst flagged the weaker growth outlook as a driver of the sell-off.