The Spanish pharma sector increased its profit by 18.4% in the first semester of the year

The Spanish pharmaceutical sector holds the rate in the first semester of the year. The six listed Spanish companies in the sector increased their joint net income by more than $83 million (€70 million) in the first half of 2020 compared to the same period in 2019, exceeding $474 million (€400 million), a rise of 18.4%. 

The combined net profit of Grifols, Almirall, Rovi, Faes Farma, Pharma Mar and Reig Jofre increased from $454 million (€383 million) in the first half of 2019 to $538 million (€454 million) in the first half of 2020. All the companies improved their net results in a period marked by the COVID-19 crisis on a global scale, with the exception of Grifols and Almirall, which saw their profits fall. 

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The pharmaceutical company which most noted the increase in its profitability was PharmaMar

The Spanish pharmaceutical laboratory closed the half year with a net profit of $135 million (€114 million), compared to losses of $25.3 million (€21.3 million) a year earlier. This significant change is a result of its operations in the United States and increased sales of its marine-based antitumor drug Lurbinectedin, its treatment for recurrent small-cell lung cancer patients.  

During the first months of the year, PharmaMar strengthened its presence in various markets and announced agreements with Immedica to sell the antitumor drug Yondelis in Europe, the Middle East and Africa. It also sealed an agreement with Megapharm to sell Lurbinectedin in Israel.  

In recent months, PharmaMar has also developed its own COVID-19 diagnostic kits and signed an agreement to distribute rapid antibody detection tests for the virus, which led to sales of $6.64 million (€5.6 million), a 110% increase over the same period last year. 

Despite this, Grifols is the leading pharmaceutical company in the ranking by profit volume

However, the company, which specialises in the production of plasma derivatives, closed the first half with a net profit of $258.8 million (€218.2 million), 24% less than a year earlier. 

The company had already stated that the health crisis had reduced the volume of plasma donations, and therefore had to adjust the value of its inventory. Grifols estimates that its net availability of plasma will be 10% lower compared to 2019. To compensate for this impact, Grifols already announced in June that it would carry out a plan to contain operating costs worth $118.6 million (€100 million). 

The multinational said that it has already managed to cut $23.7 million (€20 million) in the second quarter, adding that the net pre-tax impact of the COVID-19 crisis is $219.4 million (€185 million). 

In February, Almirall acquired the Seysara license for its commercialization in China

Almirall made a profit of $50.3 million (€42.4 million) in the first half of 2020, compared to $73.5 million (€62 million) in the same period in 2019. The company justifies this decrease by the impact of the COVID-19 on its business, which especially affected the dermatology area in Europe and the United States.

In February, the Spanish pharmaceutical company acquired Seysara’s license rights for China. The application for registration with the Chinese Nmpa is expected to be filed in 2023. It is estimated that there will be a potential of thirteen million patients treated for moderate to severe acne among the Asian country’s urban population by 2028. To reaffirm the efficiency and safety of the product, Almirall will conduct a phase 3 study during this year. 

The company has revised downwards its financial estimates for this year, quantifying the impact of the coronavirus. Almirall expects net sales to fall “from low to medium figures” and that gross operating profit (Ebitda) will be between $272 million and $296 million (€230 million and €250 million). Before the outbreak of the crisis, the group expected “low to medium-digit” growth in net sales and Ebitda of between $308 million and $332 million (€260 million and €280 million).

The financial results of Faes Farma, Rovi and Reig Jofre

The pharmaceutical company directed by Mariano Ucar reached a profit of $54.4 million (€46.2 million), 26% more. In the first quarter, the group announced the production of more than 100,000 liters of hydroalcoholic gel from its production plant in Bilbao. 

The company emphasized that its business has behaved positively since the sectors where the group operates “have not been affected by the restrictive measures of mobility or closure of factories.”

Rovi, on the other hand, has increased its profit by 87%, reaching $35 million (€29.6 million). Between January and June, the gross operating result (Ebitda) of the group grew by 60%, reaching $50.3 million (€42.4 million). 

Finally, the Catalan company Reig Jofre improved its profit by 26.7% in the first six months of 2020, to $4.5 million (€3.8 million). The company is also immersed in a clinical study to reduce the incidence of coronavirus.

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(Featured image by National Cancer Institute via Unsplash)

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