Janssen Grows by 25.6% in Spain in 2021. Biotest Loses €34 Million

Janssen is making progress in Spain. The pharmaceutical company owned by the Johnson&Johnson group posted a €1.25 billion turnover in 2021 in the Spanish market, 26.5% more than in the same period of 2021. The Janssen-Cilag subsidiary’s profit rose by 25.6% to €72.2 million.

The growth in the company’s accounts came in the same year that the use of its Covid-19 vaccine was extended, although the company claims that the improvement in its results is due to the commercialization of other products and higher sales in its current markets, as can be seen in the accounts filed with the Mercantile Registry and reported by CincoDías.

The group has a workforce of almost 1,000 people in Spain and invested €56.8 million in research and development (R&D) in 2021. According to the company, Janssen is present in pharmacies and hospitals in the areas of psychiatry, neurology, nephrology, oncology, hematology, dermatology, gynecology, gastroenterology, virology, endocrinology, and pulmonary arterial hypertension.

On a global scale, Johnson&Johnson had a turnover of $52.08 billion in 2021 in the pharmaceutical market, up 14.3% from the previous year. Its Covid vaccine posted sales of $2.385 billion, mainly in the United States and Europe.

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Janssen increased its profit to €72.2 million last year

Since the beginning of the year, the company’s CEO has been the Spaniard Joaquín Duato. The executive, who is also a U.S. citizen and who joined the group 30 years ago, previously held the top management position at Janssen and was president of Pharmaceutical Research and Manufacturers of America (PhRMA), the U.S. pharmaceutical employers’ association.

The drugmaker, which generates almost half of its sales outside the U.S. market, has been hit by the strong dollar and cut its forecast in its latest earnings presentation. “The further cut in the revenue forecast is due solely to the strong dollar, as operating performance has remained intact,” said the company’s chief financial officer, Joe Wolk.

In total, Johnson&Johnson expects year-end revenue to be between $93 billion and $93.5 billion, while it expects its earnings per share to be between $10.02 and $10.07.

Biotest loses €34 million up to September after being taken over by Grifols

Biotest loses steam. The plasma derivatives company, owned by Grifols since last April, has lost €34 million in the first three quarters of the year, compared to a loss of €28 million in the same period of 2021, as reported by Expansión.

From January to September, Biotest had a turnover of €361 million, down 2.8% compared to the first nine months of last year, and Biotest’s gross profit before operating expenses (Ebitda) amounted to €7.9 million, compared to €10.1 million in 2021. Grifols expects the Biotest acquisition to boost the group’s Ebitda to €2.2 billion in 2024.

However, Grifols points out that these are satisfactory financial figures in view of “the challenging global economic situation, the pandemic, and the difficult supply of human plasma”. In addition, the company said that its profitability is weighed down by a project to expand production capacity at its Dreiech facility, as well as various initial research and development projects.

To relaunch Biotest’s business, the Catalan pharmaceutical company is seeking to launch new products on the market, including the recently launched intravenous immunoglobulin (Ivig) Yimmugo, to treat patients with congenital immunodeficiency.

Biotest is preparing to launch several products in the coming years

One of them is a fibrinogen for hematology with a market potential of between $400 million and $800 million, expected to be launched between 2023 and 2024. Another asset is immunoglobulin used for infectious diseases, with the potential to generate up to $1.2 billion in revenues.

Last April, the Catalan pharmaceutical company obtained all the necessary regulatory approvals to close the takeover bid for Biotest, its main competitor in the market until then. With the closing of the operation, Grifols paid €1.09 million to Tiancheng International Investment Limited, the company which held a majority stake in Biotest.

In the first nine months of the year, Grifols has cut its profits by 30% to €188 million. The fall was mainly due to the increase in financial costs derived from the purchase of Biotest. When presenting its results, the listed company ruled out the possibility of a capital increase in the coming years.

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