Splitting the vaccine business is difficult to save! Australia's biotechnology giant CSL's declining profits trigger the largest single-day plunge in 17 years.

Australian biotech giant CSL Ltd. The stock price has hit the largest drop in nearly 17 years. Despite the company's announcement of a restructuring plan to spin off the Seqirus vaccine business and cut costs by about $500 million annually, the unexpected profit performance has hurt market confidence. During the early trading session in Sydney, CSL's stock price fell by 12%, marking the largest intraday drop since November 2008. Although the company's announced full-year net profit increased by 17% to $3 billion (slightly higher than the expected $2.97 billion), analysts questioned the quality of its profits, pointing out that revenue in its core Behring division did not meet expectations, and that the increase in net profit was mainly due to lower tax rates. eToro market analyst Josh Gilbert stated in a report: "The market dislikes uncertainty, and this restructuring brings many variables. Such a major change will inevitably come with execution risks." In order to simplify business structure, accelerate decision-making processes, and optimize the new drug development pipeline, CEO Paul McKenzie announced plans to spin off the Seqirus vaccine division into a separate publicly-listed company. This move will allow CSL to focus more on the hematology and iron products field, concentrating on treating rare diseases and conditions like chronic kidney disease. The company also announced the consolidation of its global research centers from 11 to 6, and the closure of 22 underperforming plasma collection centers in the United States. These measures will result in a reduction of up to 15% of the workforce, achieving cost savings of approximately $500 million annually. Although CSL has around 32,000 employees globally, the specific scale of layoffs has not been clarified. Wilson's consulting analyst Shane Storey stated in a report: "While cost cutting and strategic adjustments may superficially boost earnings per share, we need to consider whether we should evaluate these measures at a lower valuation multiple." If approved by regulators and shareholders, Seqirus is expected to be listed on the Australian Securities Exchange before the end of this fiscal year. More details on the spin-off will be disclosed at the CSL Capital Markets Day event held in the United States on November 4-6. The only comforting news for investors is that CSL announced a $750 million Australian dollar ($487 million USD) share buyback plan for this fiscal year, marking the first step in a multi-year buyback program.