CSL plans to raise $US500 million ($A649 million) to plough into the biotechnology giant's extensive operations and has flagged another share buyback of up to $500 million after delivering mixed annual earnings results.
Chief executive Paul Perreault says the additional funds will be invested into the business, including its recently enlarged vaccine unit Seqirus, and can be used for dividend payments and share buybacks.
"It's more just managing the cash; we're still, I think, appropriately leveraged as an organisation," Mr Perreault said on company's earnings call on Wednesday.
CSL intends to approach the US private placement market to raise the capital during the first half of the financial year.
The group says it will consider a further on market share buyback program of $A500 million following the completion of its current $A1 billion buyback, which was unveiled in October 2015.
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Mr Perreault said Novartis sales were lower than expected due to a mild flu season.
Seqirus is forecast to book a loss in 2016/17, in line with CSL's plans, but is expected to break even the following year.
CSL on Wednesday posted a 10 per cent fall in net profit to $US1.24 billion for the year ended June 30, hurt by a $US205.5 million loss from the Novartis influenza vaccines business and a $US115 million hit from currency swings.
After-tax underlying profit was up 5.2 per cent at $US1.47 billion, on a constant currency basis, thanks to an 8.6 per cent rise in underlying revenue. But the figure strips out the Novartis unit.
The company expects underlying after-tax profit, including the Novartis unit, to be up 11 per cent in 2016/17.
CSL shares were down $6.50, or 5.6 per cent, at $110.20, making it the biggest faller on the Australian share market at 1102 AEST.
A CSL spokeswoman said the company was not concerned about the fall, noting it historically drops on results day.
CSL's FY16 FIGURES
* Net profit down 10pct to $US1.24b
* Revenue up 8.2pct to $6.12b
* Final dividend up 3pct to US68c a share
