Australia's CSL shares leap on financial upgrade

Shares of Australian biotech firm CSL Limited (ASX: CSL) surged 12.5% to A$111.50 on Thursday, after the company upgraded its net profit after tax (NPAT) expectation for its 2017 fiscal year.

At CSL’s full year result announcement in August last year, the company foreshadowed its group NPAT for FY2017 was expected to grow approximately 11% at constant currency on the FY2016 result, after adjusting for the one-off gains and costs associated with the acquisition of the Novartis influenza vaccines business.

Following strong sales performance, particularly by immunoglobulins and specialty products in the most recent financial quarter, CSL expects to report NPAT of around $800 million for the six months ended December 31, 2016. CSL’s position as a leading large scale manufacturer, leveraging ongoing investments in plasma collections and commercial capabilities, has enabled the company to respond quickly and fulfil demand arising from current atypical market activity. This result includes a currency exchange headwind of approximately $20 million and is still subject to finalization and auditor review.