CSL

Some disappointment today, for CSL, the old Commonwealth Serum Laboratories.

A research outcome fell flat (CSL112, a study/drug designed to reduce MACEs).

Some analysts had this in their models at 70% likelihood, others, none at all. The market was disappointed, either way, with the stock falling almost 5% (after a solid run to $300 over the past quarter).

We hold CSL at an underweight in our flagship equity portfolios (4.5%) and market weight (~7%) in one of our more concentrated portfolios.

We see it as a Growth style stock, executing well overall, and that this drug, it’s failure, is part and parcel of R&D in biotech land.

CSL will continue to innovate, and given unmet clinical needs, is highly incentivized to do so. File under “would’ve been nice, but no other major implication”.

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