Insights

CSL (ASX:CSL) share price lifts 2% amid US border patrol battle

CSL relies heavily on blood plasma collection out of the United States.
The post CSL (ASX:CSL) share price lifts 2% amid US border patrol battle appeared first on The Motley Fool Australia. –

Shares in Australian biotechnology giant CSL Limited (ASX: CSL) are on the move today amid a heating battle between the company and the United States border patrol.

At the time of writing, the CSL share price is trading at $304.61 apiece, which is just under a 2% gain from the open.

CSL has filed an injunction against the US Customs and Border Protection agency after the latter instated new rules governing the mobility of Mexican citizens into the US to donate plasma earlier in the year.

Here we cover the central points of the standoff between the two parties.

What has led us to this point?

In June, the US Customers and Border Protection agency declared that certain visa holders are ineligible to donate plasma if they receive payment for doing so.

The agency claims that donating plasma in this fashion is akin to ‘labour for hire’ and is therefore prohibited for individuals on B-1 and/or B-2 visas – the particular category in question.

CSL has since fired back, teaming up with Spanish pharmaceuticals manufacturer Grifols SA (BME: GRF) in filing an injunction against the agency, effectively for interrupting the biotech’s ongoing business.

From its annual earnings report, plasma collection and separation accounted for roughly 85% of CSL’s earnings in FY21, well ahead of its vaccines and antivenom segments.

Furthermore, the industry is reliant on Mexican nationals entering the US to make plasma donations, with some estimates stating this accounts for 5–10% of all global plasma collections.

It, therefore, stands to reason that any impact to this flow of blood plasma collection could pose a material threat to CSL’s earnings potential, as it also relies heavily on plasma as a raw ingredient to construct its unique formulations.

In its defence, the US agency responded by stating there has never been a policy in situ that governs the mobility of Mexican citizens into and out of the US to donate plasma.

And even though CSL argues that receiving payment after donating plasma signifies ‘international business activity’ rather than the performance of labour, the US agency thinks otherwise.

It reckons that because the transactions take place only in the US, they cannot be considered an international business activity, which is a defining feature of the visas in question.

Nonetheless, CSL is of the firm belief that an ongoing shutdown to its plasma collection in this route could be detrimental to its business, hence why it has filed the lawsuit alongside Grifols.

The biotech’s CEO Paul Perreault was quoted as saying that “It is a bold move, but you know I don’t mind putting my neck out when patients are waiting” in the company’s annual report last month.

As the injunction was heard only last week or so, investors are still awaiting the outcome of any decision from US authorities regarding the matter.

CSL share price snapshot

It’s been a difficult year for CSL and its share price this year, having posted a gain of just 7.5% since January 1.

Over the past 12 months, it has climbed around 6%, a step in behind the benchmark S&P/ASX 200 index (ASX: XJO)’s return of around 25% in that time.

The post CSL (ASX:CSL) share price lifts 2% amid US border patrol battle appeared first on The Motley Fool Australia.

Should you invest $1,000 in CSL right now?

Before you consider CSL , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Own CSL shares? Here’s how the company actually makes money

Top ASX shares to buy in November 2021

CSL (ASX:CSL) share price history: The major highlights (and low points)

What Goldman Sachs is saying about the CSL (ASX:CSL) share price after its R&D update

The CSL (ASX:CSL) share price is up just 3% so far in 2021. Here’s why

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!