SYDNEY: Australian biotech company CSL Ltd has named Deborah Waterhouse its next chief executive officer (CEO) and managing director, turning to an industry veteran to steer a turnaround at the embattled company.
Waterhouse, who has been leading GSK Plc-backed HIV drugmaker ViiV Healthcare and serves as president of GSK Global Health, will take over on Feb 1, CSL said in a statement Wednesday.
Gordon Naylor, who stepped in after the abrupt departure of former CEO Paul McKenzie, will continue as interim CEO until then.
The appointment comes at a critical juncture for Melbourne-based CSL as it struggles to recover from its US$11.7bil acquisition of iron deficiency specialist Vifor Pharma in 2022.
The unit’s weak performance has weighed on results, with CSL projecting flat revenue growth and around US$200mil in impairments for financial year 2027 (FY27).
Shares of CSL are up 13.5% so far this year, underperforming the broader ASX.
Waterhouse’s decade at ViiV shows she can “demonstrate success running a global business” through intense competition and major portfolio transitions, Citigroup Inc analysts Laura Sutcliffe and Abhishek Jain wrote in a note. “We are encouraged” by CSL’s decision.
Through developing multiple medicines based on the HIV treatment dolutegravir, ViiV has become a critical part of GSK’s business.
With patent expiry looming, Waterhouse has focused on developing the next generation of HIV treatments that can be taken less frequently.
While rival Gilead has had success with a longer acting HIV prevention medicine, ViiV is leading in treatments designed for extended dosing intervals.
Waterhouse will remain based in the United Kingdom and spend significant time in Australia and the United States, CSL said.
Her experience “should sharpen CSL’s focus on portfolio expansion and innovative growth avenues”, Bloomberg Intelligence analyst Jamie Maarten wrote.
CSL expects Vifor revenue to fall 25% in 2027 amid continued generic competition and the European Union’s decision to revoke marketing authorisation for one of its marquee therapies.
Naylor has warned that problems facing the business will “materially affect” earnings over the next year. — Bloomberg
