Everything's coming up roses for CSL, despite a plasma shortage last year.
👉 Background: CSL is the Australian biotech company that researches, develops and manufactures products to treat serious medical conditions. Think: treatments for bleeding disorders, vaccines for the flu and COVID.
👉 What happened: Last year was a major challenge for CSL because it relies heavily on plasma donations. With everyone locked down, CSL suffered a major drop-off in plasma donations.
👉 What else: But you can’t keep a good company down. CSL is back with a pretty chunky profit of $3.3 billion. And the company is most excited because it reckons it still has a moat (aka competitive advantage) around flu vaccines, plasma and now iron deficiencies.
💡Just as moats around medieval castles kept enemies away, economic moats can protect companies from competitors. With an economic moat, a company can often:
💡Morningstar reckons there are only 200 companies in the world with a true moat. So what's CSL's moat?
💡CSL does its own research and development and has its own patents to produce lifesaving medicines... which makes it difficult for others to compete.
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