The Spanish pharma sector increased its profit by 18.4% in the first semester of the year
Faes Farma, Pharma Mar, Reig Jofre and Rovi improved their earnings in the first six months of the year. Grifols and Almirall were the two pharma companies which reduced their profits. 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 2019. The company has revised downwards its financial estimates for this 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.
Find out more about the financial results of the six largest pharmaceutical companies in Spain and read the most important financial headlines with the Born2Invest mobile app.
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.
(Featured image by National Cancer Institute via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 12]
Empires come in all shapes and sizes, from small upstart affiliate businesses right through to world-dominating empires like TikTok. And...
Green Technologies: Why Southeast Asia is the New Global Investment Frontier
According to a report by the United Nations Environment Program, annual green funding flows in Southeast Asia have been estimated...
Eniax Signs Cerba, Analiza, and Oftalvist as Clients and Aims for 1M in Sales in 2023
Eniax also works with some medical centers in Spain, such as the HLA Moncloa University Hospital in Madrid, from Grupo...
GreenIT and Copenhagen Infrastructure to Develop Three 2 GW Offshore Wind Farms
GreenIT was established in March 2021 and is dedicated to the development, construction, and operation of plants for the production...
Concrete Investing Launches €4.75 Million Crowdfunding Campaign
Concrete Investing has financed 24 real estate transactions to date in four years of activity, with about €46 million raised,...
Featured2 weeks ago
Rice Demand for Exports Was Slow to Moderate
Crowdfunding3 days ago
Concrete Investing Launches €4.75 Million Crowdfunding Campaign
Mining & Energy1 week ago
With the Copper Crunch Still Looming, Keep an Eye on Trigon Metals
Biotech5 days ago
Arthex Biotech Raises €11 Million to Advance Against Muscular Dystrophy