Australian biotech firm CSL has unveiled its plans to spin off its vaccine division, CSL Seqirus, into an independent entity and reduce its workforce by up to 15%, as part of its strategic restructuring plan.
CSL announced the restructuring plan as part of its financial results for the financial year ended 30 June 2025 (FY 2025).
The strategic move may affect up to 3,000 employees, enhancing its clinical and commercial operations and streamlining costs and decision-making processes.
According to the company, the dynamic vaccines market was affected by lower immunisation rates, especially in the US.
Its restructuring plan includes demerging CSL Seqirus into a significant ASX-listed company by the end of FY 2026, to provide autonomy to pursue its strategic goals.
CSL will also restart a share buyback program, starting with A$750m ($486m) in FY 2026, with plans to increase over time.
The initiative is intended to enhance capital efficiency and shareholder returns, alongside a final dividend of $1.62 per share, contingent on market conditions.
CSL CEO and managing director Paul McKenzie said: “CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by generating growth in a challenging environment.
“The majority of avian flu contracts globally were awarded to CSL Seqirus, which was strong recognition of our best-in-class, differentiated platforms.
“CSL Vifor grew strongly, underpinned by our resilient iron business and pleasing momentum across the nephrology portfolio, driven by both established and new products.”
The overhaul will also focus on reducing fixed costs and boosting pipeline productivity, including consolidating research and development activities.
Savings will be redirected towards priority programs and new disease targets.
A new Portfolio Development and Commercialisation (PD&C) model will integrate research, business development, and commercial teams to improve execution.
CSL Behring and CSL Vifor will merge their medical and commercial functions to achieve additional synergies and revenue growth.
Also, the company will realign its corporate functions to fit the new model.
CSL reported a net income after tax of $3.13bn for FY 2025 (ending 30 June 2025), a 19% increase compared to $2.71bn for FY 2024.
The biotech company reported a 6% increase in its sales, from $14.25bn in FY 2024 to $15.03bn in FY 2025.
Its total revenues for FY 2025 reached $15.55bn, a 5% increase compared to $14.8bn for the previous year.
CSL reported an earnings before interest and tax of $4.19bn for FY 2025, which increased by 9% compared to $4.46bn for FY 2024.
CSL chief financial officer Joy Linton said: “CSL is focused on an efficient and disciplined capital management strategy and is committed to maintaining a strong balance sheet.
“CSL’s net debt / EBITDA ratio has continued to decline and is now below two times which provides opportunities to invest in high-returning growth initiatives and external partnerships, while also returning additional cash to shareholders.”
