The U.S. government has placed a $232 million order with Australian pharmaceutical company CSL for a swine flu vaccine.
The vaccine for the type A (H1N1) influenza is still in development but clinical trials are due to begin in the next few months, funded by the US Department of Health and Human Services. Manufacture of the vaccine will be at CSL s Parkville facility in Victoria.
The Australian government has ordered 10 million doses.
This all seems like great news for CSL and its shareholders, but according to an article in The Age this morning, vaccine production accounts for only 8% of CSL s revenue due to the size of the Australian market, making this more of a good public relations opportunity rather than a financial bonanza. If CSL can gain a share of the US market, however, things could become interesting.
The CSL share price was up on market open this morning:
Source: Market Analyser. Click here for a free trial.
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