Australia’s CSL unit partners with Saudi Arabia on local flu vaccine manufacturing

Audio By Carbonatix

(Reuters) -Australia’s CSL said on Thursday its vaccine arm, CSL Seqirus and Vaccine Industrial Company, had inked a deal with Saudi Arabia’s Health Ministry to localize manufacturing of cell-based seasonal and pandemic influenza vaccines.

The deal comes a few days after biotech firm CSL said it was no longer targeting to complete the spin-off of Seqirus in fiscal 2026 amid heightened volatility in the U.S. vaccine markets. 

CSL is now looking towards other regions for growth, while the U.S., its key vaccine market, saw an unprecedented fall in flu immunization rates, leading to Australia’s fourth-largest company by market value to dim its profit outlook for fiscal 2026.

The agreement will allow CSL Seqirus to provide its cell-based seasonal and pandemic influenza vaccines to help Saudi Arabia localize manufacturing at the Vaccine Industrial Company’s Sudair City facility.

The deal comes ahead of expected major events to be hosted in the Kingdom, including World EXPO, FIFA World Cup 2034, and Olympic Esports Games.

Influenza can cause nearly 4,440 deaths annually in Saudi Arabia, while 96% of patients who were admitted to intensive care with influenza in 2024 had not been vaccinated, according to CSL.

On-shoring manufacturing would enable the oil-rich nation to enable scalable volumes, reduce reliance on global supply chains, and provide flexibility.

The agreement aims to help the country prepare for a pandemic in 2026 and supply cell-based flu vaccines for the 2026/27 season.

(Reporting by Nichiket Sunil in Bengaluru; Editing by Rashmi Aich)