By Mike Cherney

SYDNEY--Vaccine and blood-products company CSL on Tuesday unveiled a sweeping corporate restructure that will include spinning off its flu-vaccine unit Seqirus and cutting up to 15% of its staff.

Australia-listed CSL, which made the announcement alongside its annual earnings, said it aimed to simplify its operating structure amid a challenging and volatile environment. In the U.S., where CSL has much of its business, there's been a shift in public attitudes toward vaccines and a threat of tariffs, while drugmakers are under pressure to lower costs from the Trump administration.

"A dynamic geopolitical backdrop, competitive pressure and organizational complexity have challenged CSL and hindered its ability to deliver superior returns," CSL said.

The restructure gives CSL an opportunity to unlock value that's not tied to its main blood-products business, which gathers plasma from a network of collection centers and uses it to make important medications.

CSL shares have lagged the market amid the external challenges, and some analysts have pointed out that investors were essentially valuing Seqirus and the company's specialty business Vifor at zero. As of Monday, CSL shares had retreated 3.6% so far this year, compared to a nearly 10% gain for Australia's main market benchmark.

CSL said the restructuring will also involve a new portfolio development and commercialization operating model, which will integrate research and development, business development and commercial teams. It added that its blood-products business Behring and specialty unit Vifor will combine medical and commercial functions.

CSL said it would book one-off restructuring costs of $700 million-$770 million before tax and $560 million-$620 million post tax that will be recognized in the 2026 fiscal year, which began July 1.

Overall, CSL said the restructure would drive annualized cost savings of $500 million-$550 million progressively over the next three years. Seqirus would be listed in Australia, CSL added.

"We firmly believe that a simplified and focused CSL is best for patients, best for our people, and best for our shareholders," Chief Executive Paul McKenzie said. "The changes announced today will deliver enduring patient value and durable shareholder returns."

CSL also said on Tuesday that it planned to recommence a share buyback program. The buybacks will begin with up to 750 million Australian dollars (US$487 million) in the 2026 fiscal year and will increase progressively over the medium term, CSL said.

Regarding the annual earnings, CSL said a key measure of net profit, known as Npata, rose 11% to $3.22 billion in the 2025 fiscal year, which ended in June. Stripping out currency moves, CSL said Npata rose 14% to $3.3 billion. CSL said the result was on target.

CSL's final dividend was $1.62/share, a rise of 12%.

The result was driven by its main Behring unit, which posted a 6% rise in revenue at constant currency, and its Vifor unit, which posted a 8% rise. Seqirus, which had struggled recently amid falling immunization rates in the U.S., also posted a 2% rise in revenue for the fiscal year.

Looking ahead, CSL said that excluding restructuring costs and assuming no impact from tariffs, Npata would be $3.45 billion-$3.55 billion when currency swings are stripped out, representing growth of 7%-10%.

CSL faced headwinds during the Covid-19 pandemic when many of its plasma-collection centers were required to close to stop the spread of the virus, though the business has recovered since then. On Tuesday, CSL said that it had shut 22 underperforming centers in August, representing 7% of its U.S. footprint.

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

(END) Dow Jones Newswires

August 18, 2025 19:31 ET (23:31 GMT)

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