Grifols and PharmaMar Drag Down Listed Companies with a Fall of 11% in the First Half of the Year

Grifols and PharmaMar have contributed to sinking the Spanish listed pharmaceutical companies after the first six months of 2024. These two companies recorded falls of almost half and almost a quarter of their value compared to the close of December 2023, 49.1% and 22.5%, respectively . And although the value of the rest grew by double digits in the first half, between 45.4% in the case of Rovi and 11.5% in the case of Almirall, the variation of the indicator has been negative, after recording a decrease of 11.4%.

The variation between May and June, on the other hand, has recorded falls in the value of all listed pharmaceutical companies, without exception, ranging from 15.5% in the case of the Catalan multinational of blood derivatives and 0.3% in the case of Rovi .

Grifols has been suffering falls since on January 9, the bearish fund Gotham City Research denounced the consolidation of results of companies on which the Spanish company supposedly did not have the right to vote.

As the months have passed, some of Gotham’s claims have been denied, such as the anticipation of the failure of the sale of Grifols’ 20% stake in Shanghai Raas to Haier , closed last week, but new allegations have been surfacing . These are accusations related to the granting of non-refundable loans to the Scranton Entreprises family office , owned by the founding family.

Grifols assures that it will allocate the proceeds from the sale of its stake in Shanghai Raas to pay off the debt that expires in 2025 and 2027

The fall between months is explained, in part, by the fact that the blood derivatives company registered falls of more than 12% in the Ibex 35 this Thursday, following the latest updates to Grifols’ rating made by the credit rating agencies Moody’s and Fitch .

On Friday there was a slight comeback, after at the close of the market on Wednesday the company announced that it had already received the 1.6 billion euros obtained from the Shanghai Raas transaction, and that it will allocate it entirely to the payment of the debt that expires in 2025 and 2027 .

At the other extreme is Rovi, the listed pharmaceutical company that experienced greater growth in the value of its shares in the last six months. The Spanish laboratory has taken the Antin, Cinven, CVC, KKR and Permira funds to a second phase to conclude the sale of its manufacturing business to third parties for an amount of around 3.5 billion euros . The aforementioned capital managers presented their respective offers on June 13 and are currently carrying out due diligence on the asset they aspire to buy, according to Expansión sources .

Rovi’s subsidiary was named “Project Pioneer” and its main client is the American biotechnology company Moderna, for which it produces the vaccine against Covid-19 outside the United States. Rovi hired the financial services firm Lazard last summer to review the operations of its different businesses , and it was under that advice that it decided to sell the division.

The agreement between Rovi and Moderna led the Spanish laboratory to go from billing 65.6 million euros in sales to third parties in 2019 to 403.5 million in 2023 , which increased the percentage weight of this division on the company’s total sales from 17.2% to 49.3%.

__

(Featured image by Maxim Hopman via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in PlantaDoce. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us