Rovi Drags the Spanish Pharma to a 1.2% Fall on the Stock Market in August

August ends on a downward note for Spanish listed pharmaceutical companies, down 1.2%. Rovi’s double-digit drop of just over 10% is weighing down the aggregate capitalisation of the major pharmaceutical companies based in Spain. However, this decline is attenuated by the increase in the value of Grifols shares, up 8.4% compared to July.

Besides Rovi, Almirall and Reig Jofre have also suffered falls in the value of their shares, of 4% and almost 2.5%, respectively, while Faes Farma and PharmaMar closed higher, both by around 4.5%. The slight decline in the pharmaceutical companies listed in Spain contrasts with the rise in the stock markets, both the Ibex 35 and the Dow Jones, which closed August with a rise of 3% and 5%, respectively.

Last Friday was a positive day for Grifols. The shares of the blood derivatives company received a boost of more than 2% within a few hours of the opening of the Stock Exchange. This was after Bloomberg published information that the Canadian firm Brookfield has knocked on the door of several sovereign funds to participate in the takeover bid (OPA) for the exclusion of the Catalan multinational.

Rovi saw half-year revenues from its outsourcing division fall 31%

In contrast, Rovi’s third-party manufacturing business, which gained a huge boost following the agreement with Moderna to manufacture the Covid-19 vaccine, fell by 31% in the second quarter, to 118 million euros. This division went from representing 49% of the company’s total revenue in 2023 to 36% today, at a time when the Spanish laboratory is looking to sell it.

Faes Farma closed the semester with double-digit growth in its profits. The pharmaceutical company’s net income stood at 58.3 million euros, up 10% , while gross operating profit (EBITDA) increased by the same amount compared to the same period in 2023, reaching 78.5 million euros. Revenue reached 273.6 million euros, which represented an increase of 8% compared to the previous year.

PharmaMar, on the other hand, saw its half-year profits cut by 45% to €3.5 million. Reig Jofre’s profits also fell, although by less. The Catalan laboratory closed the second quarter with a profit of €5.5 million, 2% less than in 2023, although its sales grew by double digits, to €173 million, up 10%.

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(Featured image by Marek Studzinski 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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