CSL's Horizon 2 Approach to 'Significantly' Boost Margins, Earnings, Jarden Says

MT Newswires Live
Nov 07

CSL's (ASX:CSL) phasing in of the Horizon 2 approach is taking longer than anticipated and does not appear to build upon the yield advantages in Horizon 1, but will still boost margins, earnings, and the cash flow of the business "significantly," Jarden said in a note on Thursday.

The company hosted the second day of its Capital Markets Day, where it was disclosed that Horizon 2, a manufacturing method that will improve the amount of immunoglobulin yield from plasma, is "very close" to being approved, according to the investment and advisory firm.

Horizon 2 is expected to deliver nearly 23% in yield improvement on its own and will not add to the yield of the previous method, Horizon 1. Horizon 2 will gradually replace Horizon 1 once approved.

Jarden said management demonstrated confidence in its success through planning for new US manufacturing modules dedicated to Horizon 2 at a projected cost of $1.5 billion.

The firm maintained an overweight rating on CSL and kept its price target of AU$287.14 per share.

CSL shares rose 1% in afternoon trade on Friday.

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