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The Spanish pharma sector registered a rise in investment

The Spanish pharmaceutical sector does not slow down because of the COVID-19: investment increased by 4.2% in the first quarter. Grifols, Almirall, Rovi, Pharma Mar and Reig Jofre reached a joint investment of over $162 million (€150 million) between January and March. Grifols continues to be the laboratory with the highest investment, $90 million (€83.3 million).

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The Spanish pharmaceutical industry maintains investments despite the current situation caused by the COVID-19 pandemic. Listed national companies in the sector increased their combined investment by $5.4 million (€5 million) in the first quarter of 2020 compared to the same period in 2019, exceeding $162 million (€150 million). That is a rebound lead by Almirall, as a result of the announcement of the launch of new products.

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Investments in the first quarter were backed mainly by Almirall

The joint investment by Grifols, Almirall, Rovi, Pharma Mar and Reig Jofre rose from $159 million (€147 million) in the first quarter of 2019 to $165 million (€153 million) in the first three months of 2020, according to the financial results published by the pharmaceutical companies.

Almirall was the one that made it possible for the investment not to decline, with an increase of over 40%. The Faes Farma group does not give a breakdown of the investment made in its quarterly report, although it does refer to its latest operation, which is related to BCN de Colombia. “The latest investment in the international area is already bearing fruit, providing more than $5.4 million (€5 million) in terms of turnover in a single quarter and meeting the objectives,” the group pointed out.

The Spanish pharmaceutical laboratory controlled by the Gallardo family closed the first quarter of 2020 with an investment of $52.8 million (€48.9 million), compared to $37 million (€34.3 million) in 2019. The group’s commercial operations and new launches are a major boost to the company. In February 2020, Almirall acquired the license rights of Seysara for China.

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The application for registration with the Chinese Nmpa is expected to be submitted in 2023. It is estimated that there will be a potential of 13 million patients treated for moderate to severe acne among China’s urban population by 2028. This is one of the examples highlighted by the pharmacist.

Grifols continues to be the laboratory with the highest investment, $90 million (€83.3 million). Despite a 6.7% decline, the company highlighted in its quarterly report that “investment levels in R&D&I confirm and reaffirm Grifols’ commitment to growth and its long-term vision, in addition to its ongoing efforts to help mitigate the health emergency caused by COVID-19.”

Investment in R&D at PharmaMar fell from $16.4 million (€15.2 million) to $13.3 million (€12.3 million) between the two quarters. Oncology accounted for $12.4 million (€11.5 million), compared with $14.3 million (€13.3 million) in the same period last year. This decrease is due to the fact that in the first quarter of 2019 there were still expenses for the Corail Phase III trial with Lurbinectedin, as well as higher expenses for the Atlantis and Basket clinical trials, both for Lurbinectedin in small-cell lung cancer.

Reig Jofre recorded an investment of $5.9 million(€5.5 million), compared with $6.2 million (€5.7 million) a year earlier. “Investments continue at the planned level, with the main weight associated with the construction of the new injectables plant in Barcelona,” said the Catalan group.

Finally, Rovi has invested $3.2 million (€3 million) in the first quarter of 2020, compared to $3.6 million (€3.3 million) in the same period in 2019. Of this investment, the following should be highlighted: $0.65 million (€0.6 million) were invested in the injectables factory in Madrid, compared with $0.11 million (€0.1 million) in the first quarter of 2019, while $0.32 million (€0.3 million) were invested in the factory in San Sebastián de los Reyes (Madrid), compared with $0.11 million (€ 0.1 million) invested in the first quarter of 2019.

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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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Olivia McCall is passionate about education, women and children’s rights, and the environment. A long-time investor, she covers news about the latest stocks (lately marijuana and tech), IPOs and indices, and is always on the lookout for socially responsible startups. She also writes about the food sector, and has a keen interest on cryptocurrencies.