Spanish Pharma Sector Falls 15.8% on the Stock Market in the First Quarter

The Spanish pharma sector falls again in the stock market in the first quarter. The aggregate market capitalization of the six pharmaceutical companies listed on the continuous market has ended the first quarter of 2024 with a collapse of 15.8%, compared to the increases in the Ibex35 and the Dow Jones.

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In this way, the Spanish pharma sector has reversed the upward trend with which it closed 2023, when it marked an increase in its value of 27.43%

Grifols, Almirall, Laboratorios Rovi, Faes Farma, Pharma Mar and Reig Jofre have closed the first quarter of 2024 with a joint capitalization of 11,385 million euros, compared to 13,534 million euros in the last session of 2023 . In this direction, the stock market performance of the six Spanish pharma listed companies on the continuum remained against the trend of the Ibex35, the reference indicator for the Spanish stock market. Specifically, the selective index that groups the 35 most valuable listed companies on the continuous market has risen 9.7% in the first three months of the year.

In the first quarter as a whole, the listed company that has recorded the worst performance on the stock market has been Grifols. Although its capitalization has been positive in March, with an increase of 9.9%, the decreases in the first two months of the course have resulted in a collapse of 46% at the end of the quarter.

In the first quarter as a whole, the listed company that has recorded the worst performance on the stock market has been Grifols, with a fall of 46%

March has been the month in which Grifols has seen the light at the end of the tunnel, after Kpmg’s approval of its results and after a report from the National Securities Market Commission (CNMV) was published that did not require it reformulate your accounts . Despite the bearish harassment, the blood products company has seen days of increases in the Spanish selective, which contrast with the falls recorded in January and February.

The other big fall has fallen on PharmaMar, with a decrease in the value of its shares of 30% at the end of the first three months of the course . The biopharmaceutical company, which concluded 2023 with a 98% cut in its net profit compared to the previous year, ended March increasing its treasury stock above 4%, its all-time high.

This operation has occurred after the completion of its share buyback program at the end of January, which had a maximum extension of six months and concluded with the acquisition of 2.28% of its share capital; that is, a total of 419,400 own titles.

The other two listed companies that have seen the value of their shares fall in the first quarter of the year have been Almirall and Faes Farma, with decreases of 1.9% and 0.5% , respectively. The Catalan company announced in mid-March an agreement with Eloxx Pharmaceuticals to obtain the transfer of the development of the compound ZKN-013, an orally administered drug with the potential to treat rare dermatological diseases.

The only two listed companies in the Spanish pharma sector that have shown black numbers have been Rovi and Reig Jofre

Regarding Faes Farma, the Madrid-based company predicted last month a double-digit increase in Latin America and the expansion of its medical visit and animal nutrition and health businesses. In this direction, it anticipated a reinforcement of its commitment to research, development and innovation (R&D&I) with the opening of a new industrial plant in Derio, in the Basque Country, and has planned to close 2024 growing between 6% and 8% in income and between 3% and 5% in its gross operating result (ebitda).

On the opposite side were Rovi and Reig Jofre. With increases in the value of their shares of 34.4% and 10.7% , respectively, both pharmaceutical companies have helped soften the fall in the general indicator. Specifically, at the beginning of the month Rovi commissioned the financial services firm Lazard to explore alternatives for its Cdmo (contract development and manufacturing organization) division. The management’s idea would be to sell a significant portion of this area.

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(Featured image by Nicholas Cappello via Unsplash)

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

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