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The Spanish Pharmaceutical Sector Falls 5.8% in the Third Quarter

The performance of the pharmaceutical sector in the third quarter was worse than that of the Ibex35, the Spanish benchmark index, which fell by 0.3% in the same period. The biggest fall was for Reig Jofre. The pharmaceutical company’s shares corrected by 8.45% in the period, to $5.2 (€4.5) per share. The company closed the first half of 2021 with a profit of $4 million (€3.5 million).

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Spanish pharmaceutical companies listed on the continuous market close the third quarter of 2021 in the red. The aggregate capitalization of Grifols, Almirall, Rovi, Faes Farma, Pharma Mar, and Reig Jofre fell by 5.8% between June and September.

The performance of the pharmaceutical sector in the third quarter was worse than that of the Ibex35, the Spanish benchmark index, which fell by 0.3% in the same period. The six listed pharmaceutical companies closed the third quarter with a stock market value of $20 billion (€17.3 billion), compared to $21.3 billion (€18.4 billion) at the end of the previous quarter. This decline occurred in all companies except for Faes Farma, whose shares rose by a slight 0.6%.

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The six listed pharmaceutical companies closed the third quarter with a stock market value of $20 billion (€17.3 billion)

The biggest fall was for Reig Jofre. The pharmaceutical company’s shares corrected by 8.45% in the period, to $5.2 (€4.5) per share. The company closed the first half of 2021 with a profit of $4 million (€3.5 million), which translates into a 7.7% drop compared to the same period in 2020, according to the latest available data.

The second-largest decline was recorded by Grifols. The Catalan pharmaceutical company’s shares fell by 7.5% to $24.4 (€21.08). Nevertheless, Grifols continues to be the pharmaceutical company with the largest capitalization, with more than $10.3 billion (€8.9 billion).

A few days ago, the company specialized in the production of plasma derivatives began the process for the issue of senior unsecured bonds for $2.3 billion (€2 billion) with a maturity date of 2028 to finance the purchase of the German company Biotest. This acquisition has increased its indebtedness more than five times and has caused S&P Ratings to downgrade its credit rating to BB- from the previous BB.

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Almirall closed the third quarter in the stock market with a 6.7% drop, to $15.9 (€13.7) per share

Grifols is followed by Almirall. The pharmaceutical company, owned by the Gallardo family, which last May increased its share capital by more than $347,000 (€300,000), closed the third quarter on the stock exchange with a 6.7% drop, to $15.9 (€13.7)per share.

The Catalan pharmaceutical company recorded a loss of $49.6 million (€42.8 million) in the first half of the year, compared to a profit of $49 million (€42.4 million) in the same period of 2020.

Rovi and Pharma Mar also fell on the stock market. The shares of the former fell to $65.4 (€56.5) per share at the end of the third quarter, compared to $67.6 (€58.4) in the second quarter. The shares of the Galician company stood at $86 (€74.4) per share, down 1.8% compared to the previous quarter.

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Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.