The head of an Australian biotech business has blamed lower vaccination rates in the US as a key factor behind the company’s share price dropping 17 per cent in one day to a six-year low.
CSL, an Australian-based company that manufactures vaccines around the world, including in the US, saw its value drop the equivalent of $17 billion as of 11.45am AEDT after its financial forecast was adjusted at its annual general meeting in Melbourne today.
The company’s CEO and managing director Paul Mackenzie said vaccination rates in the US were expected to drop 12 per cent for the overall population and 14 per cent in those over 65.
“We have seen a greater decline in influenza vaccination rates than we expected,” he said.
“This challenge impacts our forecasts.”
Donald Trump’s return to the White House saw him appoint Robert F. Kennedy Jr as the Secretary of Health.
The 71-year-old has publicly expressed scepticism about vaccines, including linking vaccines and the rising rates of autism in children.
Mackenzie said this had been a contributing factor to CSL’s growth forecast being 2-3 per cent, down from the 4-5 per cent previously expected.
The changing climate has forced the company to put off a demerger of its Seqirus vaccine business.
CSL has also faced a significant revolt from shareholders, with investors furious at the company’s executive pay report.
The report required 75 per cent of shareholder approval to proceed and triggered a motion to spill the company’s board, which failed.
