Spanish Pharma Listed Companies Reduce Their Profits by 37% in 2023

The fiscal year of 2023 has not been desirable for almost half of the Spanish pharma listed companies on the continuous market.

Grifols, Rovi and PharmaMar have closed their accounts with drops in their profits. Of 71.6%, 14.9% and 97.8%, respectively. Almirall, for its part, has seen its gross operating profit (ebitda) fall by 12.2%. The reasons are different for each company.

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As a whole, Spanish pharma listed companies have recorded a drop in profits of 37.1%, to 370 million euros

The six Spanish pharma listed companies have a combined income of 9.27 billion euros, 6.6% more than in 2022, and have registered an EBITDA of 2.05 billion euros, 8% more.

The multinational blood products Grifols has gone from 208 million euros in net income in 2022 to 59 million euros. The company attributes this drop to the costs of the restructuring undertaken by the company during 2023. As of June 31 of last year, this company accumulated a net financial debt of 9.4 billion euros, and in 2025 it will have to face the first maturities.

Hence the desire of the Grifols board to simplify its structure, selling some of its assets, among which stands out 20% of its stake in the Chinese company Shanghai Raas, which will buy Haier before the first half of 2024 for 1.63 billions of euros. These results do not reflect the impact that the accusations by the bearish Gotham City Research fund have had on its accounts .

Of the Spanish pharma listed companies, PharmaMar has suffered the most significant drop in profits due to generic drug competition with its star drug

Rovi has suffered a less pronounced drop in its net result, going from nearly 200 million euros in 2022 to 170.3 million euros in 2023. The López-Belmonte family laboratory owes much of its growth in previous years to an agreement with the pharmaceutical company Moderna to produce its Covid-19 vaccine outside the United States.

Overcoming the pandemic has eroded the accounts of large pharmaceutical companies around the world, and this has impacted those to whom these companies delegated the manufacturing of their products against Covid-19. This is the case of Rovi, which despite this has seen an opportunity to expand its third-party manufacturing business. This division went from representing 17.2% of the Spanish pharma company’s sales in 2019 to 49.3% in 2023. .

But the worst part has been taken by PharmaMar, which seems not to be able to raise its head since it closed in 2022, becoming the second worst value on the Spanish stock market. This laboratory has seen its profits go from 49 million in 2022 to just over one million euros in 2023.

The pharma company explains this drop by the pressure on the prices of its drug indicated for cancer treatment, Yondelis, from generic medications. Sales of this medicine go from almost 64 million euros in 2022 to 26.1 million in 2023.

Other Spanish pharma listed companies worth mentioning

Almirall and Oryzon Genomics deserve special mention. The Gallardo family laboratory closes the fiscal year with drops in its ebitda from 198 million euros to 174 million euros due to investments in new products and the expansion of others that it already markets. Oryzon closes again with losses, but cuts them from 4.2 million euros in 2022 to 3.3 million euros in 2023.

Faes Farma closes its year with an increase in its profits for the eleventh consecutive year, from 89.5 million euros to 91.9 million euros and Reig Jofre goes from 8.1 million euros to 9.4 million euros.

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(Featured image by James Yarema via Unsplash)

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