CSL Ltd Annual Report 2019

5 Innovation and collaboration are the engine that drives CSL. We invest in research and development, enabling our continued growth. Collaboration with and funding of medical research Collaboration is at the heart of CSL’s success and is critical to maintaining a strong pipeline of new therapies. Cross- cultivation of ideas from academia to industry helps translate science into lifesaving medicines that improve the quality of life for people with rare and serious diseases. Over the past year, we’ve entered exciting research collaborations and made significant investments in the future. A substantial 5,000m 2 expansion of the Bio21 Institute in Parkville, Australia, incorporating CSL’s global hub for research and translational medicine was officially opened in December 2018. CSL has partnered with the University City Science Center in Philadelphia, US, to identify and help commercialise potential newmedicines at research and academic institutions across the Greater Philadelphia region. Through the partnership, the Science Center’s framework for technology commercialisation, services and support along with the Science Center’s network of research and academic partners, will provide the support and infrastructure for CSL to efficiently evaluate promising technologies frommultiple institutions. In Switzerland, research scientists based in Bern will relocate to the Swiss Institute of Translational and Entrepreneurial Medicine (SITEM). A new Biologics Research Centre constructed at SITEM will provide an ideal environment to facilitate collaboration between clinicians and around 50 CSL researchers with the goal of developing new innovative therapies for patients. CSL is also involved in initiatives to aid and accelerate the commercialisation of promising biomedical research. Through a commitment of A$25 million, CSL is participating in the Brandon Capital led A$230-million Biomedical Translation Fund and the A$200-million Medical Research Commercialisation Fund (MRCF). These funds, the largest life science funds in Australia’s history, are investing in the development of promising Australian biomedical discoveries and increasing the pool of products suitable for later-stage development. Influenza remains one of our greatest global health threats. CSL is committed to collaborating with like-minded partners to advance understanding of the human response to influenza and to discover new and innovative vaccine solutions. We have joined an international, non-profit venture, the Human Vaccines Project, dedicated to decoding the immune system to develop a universal flu vaccine that affords long-lasting protection against seasonal and pandemic influenza across demographics and geography. The Project unites leading academic research centres, industry partners, non-profits and governments to address the primary scientific barriers to developing new vaccines and immunotherapies. The Project will utilise biomedical and artificial intelligence-based machine learning technologies to develop models of the immune system, to rapidly accelerate vaccine research. Investment in research and development pipeline In 2018/19, CSL invested US$832 million in research and development (R&D) efforts across our businesses. CSL’s global R&D activities focus on the development of innovative new and improved products and manufacturing processes thereby ensuring our continued growth. Our R&D portfolio is divided into six therapeutic areas – immunology and neurology; haematology and thrombosis; cardiovascular and metabolic; respiratory; transplant; and vaccines. For a detailed view of our diverse and balanced product pipeline see page 9 of this report. In addition, key achievements across our therapeutic areas can be found on CSL.com (Our Company > Corporate Responsibility > Innovation). CSL continues to look for strategic partnerships, such as those executed with Vitaeris and Momenta Pharmaceuticals, Inc. in the past. The integration of Calimmune Inc., which was acquired in 2017, is now complete. Across our influenza portfolio, CSL has a number of clinical studies underway to expand age indications and further optimise adjuvant and cell-based technologies. Early stage collaborations are exploring other transformational approaches including universal influenza vaccine projects, synthetic seeds, yield optimisation and other vector/ expression technologies. * Indicator externally assured by Ernst & Young. US$832 million in research and development.* The largest clinical trial ever undertaken by CSL is now underway with CSL112, a novel plasma derived apolipoprotein A-1 infusion therapy. CSL112 has the potential to reduce early recurrent cardiovascular events, experienced by nearly one in five survivors of acute myocardial infarction or heart attack. Patients in over 44 countries have enrolled in the study. CSL Limited Annual Report 2019 14 Powered by Innovation