February 11, 2026 — A sweeping shift in vaccine regulations under the Trump administration has led to significant financial repercussions for CSL, one of Australia’s largest biotechnology firms. The company announced a $1.5 billion writedown, contributing to a staggering $10 billion drop in its market value. This financial turmoil follows the appointment of Robert F. Kennedy Jr. as Health Secretary, known for his stringent vaccine requirements.
CSL’s shares plummeted on Wednesday morning after revealing the writedowns and an 81% decline in first-half profits. The announcement came on the heels of an abrupt leadership change, with CEO Dr. Paul McKenzie stepping down amid ongoing challenges in the US vaccine market.
CSL’s Historical Success and Current Challenges
Founded as a Commonwealth-owned laboratory, CSL has been a hallmark of success on the Australian stock exchange over the past three decades, becoming a major player in blood plasma products and vaccines. However, the company has recently faced headwinds from regulatory changes in China and now, the US.
For the December half-year, CSL reported a net profit after tax of $US401 million ($566 million), significantly impacted by restructuring costs and $US1.1 billion ($1.5 billion) in asset writedowns across its global operations, including its vaccine division.
CSL’s share price has halved in 18 months, erasing over $70 billion in shareholder wealth.
Leadership Changes Amid Financial Struggles
The company’s shares fell as much as 12% to a low of $150.23, following a 5% drop on Tuesday evening after the unexpected announcement of Dr. McKenzie’s immediate retirement. Trading on the ASX continued amid the chaotic market reaction.
Interim CEO Gordon Naylor addressed the situation, stating, “The results we’re presenting today represent a step in a broader transformation of CSL with the objective of delivering enhanced growth, profitability, and shareholder returns.” He emphasized his commitment to driving the changes initiated last year.
CSL Chairman Dr. Brian McNamee expressed urgency in improving company performance, indicating that McKenzie was not advancing change rapidly enough. “When the board sat down recently and looked at our business and thought about where we need to go in the future, we recognized he didn’t have the skills that we wanted for the future,” McNamee told analysts, highlighting the board’s dissatisfaction with the group’s performance.
Impact of US Vaccine Market Dynamics
CSL’s challenges have been exacerbated by declining vaccination rates in the US, fueled by anti-vaccine sentiment and President Donald Trump’s threats of imposing up to 250% tariffs on pharmaceuticals. A further plunge in US vaccination rates since Kennedy’s appointment has dealt another blow to vaccine profits, triggering a collapse in share prices.
Dr. McNamee noted, “The double-digit decline in US vaccination rates was a shock to the group, given the declines already experienced over the previous two years.”
CSL’s results announcement attributed the writedown of its vaccines division to the devaluation of its coronavirus vaccine technology, driven by a declining COVID disease burden and more stringent US regulatory requirements. The company anticipates further declines in this business segment throughout the year.
Looking Ahead: Strategic Adjustments and Market Reactions
The announcement comes as CSL navigates a complex landscape of regulatory challenges and market pressures. The company’s strategic adjustments and leadership changes signal a proactive approach to stabilizing its financial position and regaining investor confidence.
As CSL continues to adapt to the evolving global vaccine market, the impact of US policy changes remains a critical factor in its future trajectory. Investors and industry analysts will be closely monitoring the company’s next steps as it seeks to recover from its recent setbacks.
