(Reuters) -Australian biotech giant CSL said on Tuesday it plans to demerge its influenza vaccine division, CSL Seqirus, into a separately listed company by the end of the financial year 2026, alongside job cuts and a share repurchase program.
“A demerger will allow autonomy to set an independent strategic direction,” the biotech giant said.
CSL said it will reduce its workforce by up to 15% and resume a share buy-back program, targeting an A$750 million ($486.98 million) repurchase in fiscal 2026.
The company expects these measures to deliver annualized cost savings of between $500 million and $550 million over the next three years.
However, CSL warned of a one-off pre-tax restructuring charge of between $700 million and $770 million in fiscal 2026 as part of the initiatives.
($1 = 1.5401 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru; Editing by Mohammed Safi Shamsi)
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