CSL Finalises Vaccine Deal with Australian Government (ASX:CSL)

Australia’s largest biotech company recently announced it has finalised an agreement to supply the country with a COVID-19 vaccine.

This pandemic has been a major issue globally and CSL LTD [ASX:CSL] is doing all it can to help.

At the time of writing, the CSL share price has risen 4.42%, trading at $296.48.

ASX CSL Share Price Chart 1

Source: Optuma

What’s happening at CSL?

COVID-19 is causing all types of weird and worrying things to happen around the world.

The most pressing of the issues is the loss of life. So far, there are 1.05 million deaths and counting.

With the number of deaths increasing along with the spread rate of the virus, a vaccine for COVID is paramount.

CSL through its subsidiary, Seqirus, along with the University of Queensland, have finalised an agreement to supply 51 million doses of a vaccine candidate V451 to Australia should the clinical trials be successful.

At present, CSL holds a market cap of $132 billion making it well placed to have the financial clout and resources to tackle the COVID-19 problem.

Where to from here for CSL?

CSL has been working at pace to respond to the current COVID-19 pandemic and has invested significant resources in the rapid development and large-scale manufacture of V451.

The large-scale Phase 2b/3 clinical study for V451 is almost ready.

ASX CSL Share Price Chart 2

Source: Optuma

From the all-time high of $342.75 back in February, the price fell over 29% into the March low.

Recovery of price is proving to be a bit slow with a long-term pennant pattern forming.

If price can gain steam and move up, then the levels of $299.16 and $317.84 may provide future resistance, although volume is falling away — indicating buyers may not be committed to a further move up at this time.

Should price retrace and fall back, then the levels of $275.42 and $267.61 may become the focus.


Carl Wittkopp

For Money Morning

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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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