CSL Ltd., the world’s second-biggest maker of treatments derived from blood, rose the most in seven months in Sydney trading on speculation it will benefit from a recall of a competitor’s product in the U.S. and Europe.
CSL climbed 3.4 percent to close at A$32.80 on the Australian Securities Exchange, the most since Feb. 17. The U.S. Food and Drug Administration will meet this week to decide whether to extend a recall of closely held Octapharma AG’s Octagam 5%, UBS AG said in a note to investors today.
European nations including France and Sweden have quarantined or withdrawn the product in the past week amid concern about its safety, Andrew Goodsall, a Sydney-based health-care analyst at UBS, wrote. Octagam is an intravenous immunoglobulin product, or IVIG, used to treat immune deficiencies and autoimmune diseases.
The FDA said Aug. 20 that Octapharma was voluntarily recalling selected lots of Octagam 5% because of an increase in the number of reported cases of blood clots, some of which were serious.
Octapharma controls about 13 percent of the global IVIG market, according to UBS. A U.S. ban would mean the company’s competitors, which include Melbourne-based CSL and Deerfield, Illinois-based Baxter International Inc., would gain “high single digit growth” in IVIG sales, Goodsall wrote.
CSL is “working with customers in affected markets to help ensure uninterrupted access to this important medicine,” Sharon McHale, a CSL spokeswoman, wrote in an e-mailed response to a request for comment.