It has been a turbulent year for CSL Ltd (ASX: CSL), but the biotechnology share has taken another important step towards getting its business back on track.
On Wednesday, the company announced the appointment of a new chief executive following an extensive global search.
With fresh leadership on the way and management already working to improve performance, could now be a good time to buy CSL shares?
Here's what I think.
Who is CSL's new CEO?
CSL has appointed Deborah Waterhouse as its new CEO and managing director, effective from 1 February 2027.
She will replace interim CEO Gordon Naylor, who stepped into the role following Paul McKenzie's departure in February.
I think Waterhouse looks like a strong appointment. She brings more than 25 years of experience in the pharmaceutical industry, including senior leadership roles across the US, UK, Europe, and Australia.
Since 2017, Waterhouse has led ViiV Healthcare, a specialist HIV medicines business majority-owned by GSK plc (LSE: GSK).
During her time there, she has helped develop and commercialise new treatments, giving her considerable experience in an area that I think is particularly important for CSL.
She has also previously led GSK's US vaccines business.
For a company with operations spanning plasma therapies, vaccines, and specialty medicines, I think that combination of commercial experience and industry knowledge could be valuable.
What could she bring to CSL?
One thing I would like to see from CSL's new leadership is a stronger focus on turning its scientific expertise into commercial success.
CSL has an established position in several important healthcare markets, but it has struggled to deliver the earnings growth investors once expected.
Management has already begun addressing this through restructuring, cost reductions, and efforts to improve operational efficiency.
Waterhouse will inherit that work, and I think her experience could help CSL build on the progress being made.
The company also has opportunities to improve its plasma collection operations, including the planned introduction of new collection technology across its US centres.
Making this network more efficient could support margins and help CSL meet growing demand for its plasma-derived medicines.
There is also considerable potential in its existing products and development pipeline. I would like to see CSL continue bringing new treatments to market while expanding the reach of medicines it already sells.
Those are areas where Waterhouse's commercial background could make a difference.
Would I buy CSL shares?
I think there are reasons to be positive about CSL's prospects beyond the leadership announcement.
Global demand for immunoglobulin therapies remains strong, and the company has an established international presence that would be difficult for a competitor to replicate.
Management is also expecting a return to underlying earnings growth in FY27, with guidance pointing to an increase of approximately 5% at constant currency. That would be an encouraging step after a difficult period.
Of course, there are challenges to overcome. CSL's Vifor business continues to face pressure from generic competition, while the vaccines business has been dealing with weaker immunisation trends in the US.
And Waterhouse will need time to demonstrate that she can deliver lasting improvements.
But I think the combination of an established global business, improving operational efficiency, and experienced new leadership provides a promising foundation for the years ahead.
Foolish takeaway
I would be happy buying CSL shares today.
Waterhouse's appointment gives me another reason to feel positive about the company's direction, particularly given her experience growing pharmaceutical businesses and developing new products.
There is still work to do, but I think CSL has the foundations to become a stronger and more profitable business over the coming years.
For investors prepared to be patient, I believe its recovery could deliver attractive long-term returns.
The post CSL has a new CEO, are its shares a buy? appeared first on The Motley Fool Australia.
Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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