Healthy horizons for global plasma industry

The Age

Wednesday July 8, 2009

ELI GREENBLAT

CSL rival and one-time takeover target Talecris Biotherapeutics has painted a rosy picture of the global blood plasma industry in a report to the US Securities and Exchange Commission, showing improving sales and gross margins for the world's No. 3 blood plasma supplier.Talecris has forecast worldwide unit volume demand for plasma-derived products to grow over the long term at a compound annual rate of 6 to 8 per cent. Australian demand for plasma products is rising at an annual rate of 14 per cent.Talecris posted net revenue of $US364.9 million ($A460.3 million) for the three months ended March 31, compared with $US296.7 million for the previous March quarter, an increase of 23 per cent.Profit figures were also stronger, with gross profit of $US162.6 million for the March quarter against $US98.5 million in 2008.CSL launched a $US3.1 billion offer for Talecris in August last year but abandoned the attempt in June after the deal was blocked by the US Federal Trades Commission.CSL is expected to post a full-year profit of $1.1 billion for 2008-09, up from $702 million in 2007-08.The prospectus update from Talecris, seen as a precursor to a potential float, provides an insight into the health of the blood plasma industry.Talecris warns in the 350-page document that its plasma fractionation is expected to reach capacity in 2011. The capacity constraint could lift plasma prices and generate better earnings for CSL.It comes as CSL ramps up attempts to move from its Carimune product to Privigen in the US and explores the idea of offering rebates to distributors to encourage greater volumes.Privigen is used to treat immune system problems. CSL also earns a higher margin from Privigen.Shares in CSL ended yesterday 9 higher at $30.63.