CSL delayed plans to spin off CSL Seqirus as its own listed entity on the Australian Securities Exchange due to a drop in US vaccinations rates that the company described as “bigger than expected.”¹ The company originally announced plans to spin off the influenza vaccine provider by next June. According to CSL, this would have involved cutting about 3,000 jobs.

How else will dropping vaccination rates impact CSL's business?

The company also announced a reduction in its expected full-year revenue growth from 4-5% to just 2-3%. Following these announcements, company shares reportedly dropped 16%.

However, the company still plans to perform the spin off, but only at a time when it believes that the market has stabilized.

While the US market may not have good news for the company, it is seeing positive headlines from other parts of the world.

On Thursday, CSL announced that CSL Seqirus and Vaccine Industrial Company (VIC) had signed a memorandum of Understanding with the Ministry of Health of Saudi Arabia to localize the manufacturing of seasonal and pandemic influenza vaccines.² VIC is a prominent Saudi vaccine company and the partnership between the companies aims to improve the region’s preparedness for potential outbreaks.

In a press release, CSL Seqirus’s VP of commercial operations for international & pandemic response Dr. Lorna Meldrum, said, “Seasonal influenza has a significant impact on families, the community and the health system in Saudi Arabia. Through this collaboration, we will leverage the best of our differentiated vaccine portfolio with the strength of Vaccine Industrial Company’s local manufacturing expertise and networks to establish the Kingdom as a regional leader in preventing seasonal influenza.”

Meldrum continued, “CSL Seqirus is an influenza pandemic preparedness and response partner to over 30 governments around the world. This partnership will elevate Saudi Arabia’s influenza pandemic preparedness and response strategies in influenza––which has caused four pandemics over the last century.”

In the same press release, Dr. Khaled Al-Mosa, founder and chairman of Vaccine Industrial Company, added, “Our vaccine manufacturing facility will begin to come online from 2028, when it will be the first of its kind in the Kingdom and the largest in the Middle East. We are delighted by the prospect of localizing advanced cell-based influenza vaccine manufacturing there for Saudi Arabia and the MENA region. Through this collaboration with the Ministry of Health and CSL Seqirus, together we will have the opportunity to enhance the region’s health, help save lives and reduce the impact of flu.”

Also, despite reduced vaccination rates in the US, CSL still says that the research shows the importance of the influenza vaccine. In October, the company presented evidence that influenza vaccines provide important protection to older adults across Europe.³

In a press release issued at the time, Spain and Iberian cluster head at CSL Seqirus Pepe Meseguer Perez said, “These results confirm that both adjuvanted and high-dose influenza vaccines are highly effective, giving health authorities flexibility to choose the best option for their populations. Importantly, previous studies have shown these enhanced vaccines outperform standard-dose formulations, providing stronger protection for older adults.”

In the same press release, Meldrum added, “These data highlight a clear opportunity for European policymakers: adopting enhanced influenza vaccines or expanding their programs for older adults to include these - not only improves health outcomes but also reduces pressure on healthcare systems.”

Sources

1. CSL delays spin-off as US flu vaccine rates decline. Reuters. October 27, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/australias-csl-delays-vaccine-division-spin-off-amid-us-market-volatility-2025-10-27/
2. CSL Seqirus and Vaccine Industrial Company sign landmark Memorandum of Understanding with Ministry of Health to localize manufacturing of cell-based seasonal and pandemic influenza vaccines. CSL. October 30, 2025. https://newsroom.csl.com/2025-10-30-CSL-Seqirus-and-Vaccine-Industrial-Company-sign-landmark-Memorandum-of-Understanding-with-Ministry-of-Health-to-localize-manufacturing-of-cell-based-seasonal-and-pandemic-influenza-vaccines
3. Enhanced Influenza Vaccines Provide Essential Protection for Older Adults: CSL Seqirus Presents New Evidence Supporting Broader Adoption Across Europe. CSL. October 21, 2025. https://newsroom.csl.com/2025-10-21-Enhanced-Influenza-Vaccines-Provide-Essential-Protection-for-Older-Adults-CSL-Seqirus-Presents-New-Evidence-Supporting-Broader-Adoption-Across-Europe