Australian biotech CSL has cut profit outlook and delayed vaccine division spin-off due to U.S. flu immunization rate drop, leading to a 16.6% share price slump. Investors rejected executive pay packages, but the board survived a spill motion at the annual meeting. The demerger plan has been postponed amidst market volatility.

CSL, fourth-largest Australian company, planned to spin off Seqirus vaccines unit but now faces U.S. vaccination rate decline of 12% in winter. The drop is attributed to policy shifts by U.S. Health Secretary Robert F. Kennedy Jr., impacting sales. CEO McKenzie expressed surprise at the sharp decrease in immunization rates.

Revenue and earnings outlooks for CSL have been reduced, with full-year revenue growth guidance lowered to 2-3% and net profit expected to rise between 4-7%. Shares plummeted by 16.6% to A$176.23, the lowest since 2018. The unexpected downgrade drove the decline, despite the delayed demerger announcement.

Chairman McNamee described the U.S. vaccination rate decline as “remarkable” and uncertain. Shareholders expressed frustration with CSL’s performance, evidenced by a 42% protest vote against the remuneration report. The demerger will proceed when market conditions are favorable for shareholder value maximization.

Read more at Yahoo Finance: CSL delays spin-off, cuts profit outlook as US vaccination rates slide