CSL has announced a plan to develop a new drug for the asthma market.
👉 Background: CSL was founded in 1916 as the "Commonwealth Serum Laboratory". It has really made a name for itself with its plasma collection, which has seen it become the third-largest company on the ASX.
👉 What happened: Now, CSL has announced a plan to develop a new drug for the asthma market. And given that more than 10% of Australians, or 2.7 million people suffer from asthma, this is much needed.
👉 What else: In today's world, many asthma sufferers use an inhaler that has steroids in it. But, this can have some pretty serious side effects. So, CSL is hoping that their investment in R&D will help them develop this new-age asthma drug over the next 5 years.
💡R&D or Research and Development is one of the critical elements of tech and biotech companies, because they enable product innovation.
💡CSL is allocating a whopping 10% to 11% of their annual revenue towards R&D. And, given their revenue for FY23 was over US$13 billion, that's a whole lotta research dough.
💡CSL's investors love R&D investment because:
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