CSL Ltd. Share Price Up on Acquisition News (ASX:CSL)

Moving up 1.71% at the time of writing to trade at $297.37, the CSL Ltd [ASX:CSL] share price looks to be making a recovery in turbulent times.

CSL Share Price Chart 1

Source: Optuma

CSL is now Australia’s largest company by market cap, coming in at $132.75 billion. Announcing a net profit of $1.248 billion for the six months ending 31 December 2019, CSL are in a strong position to see out the storm of the coronavirus.

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What’s been happening at CSL

The company recently announced it’s acquiring exclusive global license rights to commercialise an adenoassociated virus (AAV) gene therapy program, AMT-061 (etranacogene dezaparvovec), for the treatment of haemophilia B from uniQure. The AMT-061 program, currently in Phase 3 clinical trials, could be one of the first gene therapies to provide potentially long-term benefits to patients with haemophilia B.

UniQure is a leading gene therapy company listed on the NASDAQ.

With the new deal uniQure will get a $450 million payment up front from CSL, followed by other payments and royalties.

CSL managing director, Paul Perreault noted:

Upon approval, we believe this next-generation therapy would be highly complementary to our existing haemophilia B product portfolio.

Where can the CSL share price go from here?

CSL Share Price Chart 2 - CSL Technical Analysis

Source: Optuma

From the low in November 2018, CSL’s share price moved up 98.14% to the high of $342.75 in February 2020.

Price fell back with the onset of the COVID-19 virus but managed to move back up. Now only 13.17% down from the all-time high, sitting at $297.37 at the time of writing.

Interestingly, price is now forming a pennant pattern with a sideways movement. Should it move out of this to the upside levels of $310.81 and $333.03 it may provide future resistance.

On the downside, if the price were to fall, then levels of $275.75 and $242.43 may come into focus.

Regards

Carl Wittkopp

For The Rum Rebellion

PS: Three Deep Value Stocks Currently Under-Priced: These ASX gems could potentially deliver market-beating returns as the economy recovers. Click here to learn more. 

 


Carl Wittkopp writes for The Rum Rebellion and has a diploma in Financial Planning. He specialises in the technical analysis of stocks.


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