Rovi Drags Down the Pharma Stock Market in September

The Spanish pharmaceutical market is down slightly compared to August. The main player in the decline is Rovi, which has recorded a double-digit drop in the value of its shares, specifically 10.5%.

Almirall is also down, although less: 1.2%. The decline is moderated by increases in PharmaMar and Grifols, 22.4% and 1.4%, respectively, and slight increases in Faes Farma and Reig Jofre, 0.2% and 0.3%.

Rovi shares fall in September

Overall, the Spanish listed pharmaceutical industry has fallen by 1.9%, and by 2.2% if the unadjusted variation in the number of shares is taken into account. Both the Ibex 35 and the Dow Jones have registered increases of 4% and 2.4%, respectively.

Rovi suffered a fall on the stock market in mid-September after it became known that the British private equity fund CVC Capital Partners was negotiating the purchase of the Spanish laboratory’s third-party manufacturing business (Cdmo) for more than 3 billion euros. A caveat that contrasted with the fact that the pharmaceutical company has accumulated a revaluation of more than 30%.

Grifols has had an irregular performance on the stock market, with rises and falls in the value of its shares

Grifols began the first month of the year with a reduction of JP Morgan’s position in the blood derivatives company and concluded it with Brookfield requesting more time to carry out its due diligence. The takeover bid by the Canadian fund together with the founding family has been one of the main reasons why the Catalan multinational’s shares have risen and fallen.

Although the National Securities Market Commission (CNMV) sanction against the company and against the Gotham City Research hedge fund has also played a role. Specifically, last Thursday, one day after the warning was announced, Grifols’ class A shares rose 2.49% on the Ibex 35, to 9.6 euros per share, while class B shares, on the Continuous Market, rose 2%, to 7.8 euros. But today, Monday, the evolution of the company’s shares was downward, with falls of 1%.

The news for listed companies in September concludes with Reig Jofre’s announcement of its expansion plans to Eastern Europe. The Catalan company shared its growth plans, which will materialise in the opening of a subsidiary in the Czech Republic, where it is already working with marketing agreements, in collaboration with a local partner, Leram Pharma.

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(Featured image by Chris Liverani via Unsplash)

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

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