(Reuters) -Australian biotech CSL said on Tuesday it no longer expects to complete the spin-off of its vaccine division in fiscal 2026, citing heightened volatility in the U.S. influenza vaccine market.
The company had updated shareholders in August that it would spin off CSL Seqirus into a listed entity by next June and would lay off about 3,000 employees.
CSL said on Tuesday its August update came as declining vaccination rates were stabilising in the U.S. following a flu season marked by highest illness and death rates in 15 years, and U.S. health authorities recommending annual shots for everyone aged six months and older.
Since the announcement, CSL highlighted that influenza vaccination rates in the U.S. have declined at a greater-than-expected rate.
That prompted the company to trim its overall revenue forecast for the Seqirus business in fiscal 2026.
The demerger is now expected to occur when market conditions support maximizing shareholder value, the company said.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shilpi Majumdar)
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