The Spanish Pharmaceutical Sector Falls 7.2% on the Stock Market in 2021

The Spanish pharmaceutical sector is once again taking a step backward on the stock market. The aggregate market capitalization of the six Spanish pharma companies listed on the continuous market stood, as of December 31st, 2021, at $17.8 billion (€15.7 billion), compared to $19.2 billion (€16.9 billion) at the close of 2020, a drop of 7.2% in comparable shares.

The companies that have determined the sector’s performance are Grifols, the largest by capitalization, whose shares fell by 29%; Pharma Mar, with a 19.7% decline; Reig Jofre, with a 25.7% drop, and Faes Farma, whose shares fell by 0.3%. In contrast, only Almirall and Rovi have increased the value of their shares in 2021.

The negative variation of the Spanish pharmaceutical sector contrasts with the positive performance of the Ibex35, which recorded a rise of 8% at the close of 2021, compared with December 31st, 2020. For its part, the Dow Jones, the benchmark in the United States, rose 19%.

At the close of the 2021 market, on December 31st, the plasma derivatives giant Grifols remained at the top of the ranking of Spanish pharmaceutical companies by market capitalization. The Catalan pharmaceutical company closed the year with a stock market fall of 29%, with a market capitalization at year-end of $8.2 billion (€ 7.2 billion). The share price stood at $19.16 (€16.87).

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Grifols, Almirall and Faes Farma have reduced their stock market value, while Rovi, Pharma Mar and Reig Jofre have increased it

The performance of Grifols, due to its capitalization, has weighed down the trend in the Spanish pharmaceutical sector. In September, the company began the process to issue $2.27 billion( €2 billion) in senior unsecured bonds maturing in 2028 in order to finance the purchase of the German company Biotest. This acquisition boosted the company’s debt by more than five times and prompted S&P Ratings to downgrade its credit rating to BB-.

In second place in terms of capitalization is Rovi, whose shares have increased in value by 94.7% at the close of 2021, to 73.8 euros per share. The pharmaceutical company’s market capitalization has risen from $2.4 billion (€2.12 billion) to $4.7 billion (€4.14 billion). In 2021, Moderna chose Rovi as its partner for the manufacture of the coronavirus vaccine outside the United States. The Spanish pharmaceutical company expects to achieve in 2021 the growth forecasts projected for 2023, with operating revenues in the range of $667 million (€588 million) to $691 million (€609 million).

Almirall is the third-largest company in terms of market capitalization, reaching $2.3 billion (€2.03 billion) at the end of the year. The pharmaceutical company has recovered with respect to the previous year’s figures, registering a positive stock market variation of 3.5% over the course of 2021. The value of each share of the company stood at $12.83 (€11.3).

Rovi has increased its capitalization to $4.7 billion (€4.14 billion), 94.7% more than a year earlier

The pharmaceutical company reported in November that it has $1.14 billion (€1 billion) to spend on acquisitions to strengthen its topical treatment offering, according to the company’s CEO, Gianfranco Nazzi.

For its part, Pharma Mar’s shares have experienced a 19.7% decline, reaching a value of $64.7 (€57) per share, achieving a capitalization of $1.19 billion (€1.05 billion) at the end of 2021. The Spanish pharmaceutical company posted a net profit of $62.1 million (€54.7 million) in the first nine months of 2021, compared with $148.7 million (€131 million) in the same period of the previous year.

In addition, the group’s turnover came to $163.4 million (€143.9 million), down 54.3%. This difference is largely explained by the fall in-licensing and development revenues, which are due to the initial payment of a licensing agreement with Jazz Pharmaceuticals, as well as the approval of lurbinectedin in the United States.

Pharma Mar has doubled its capitalization and increased its share value to $4.05 (€3.57)

Faes Farma has seen the smallest decline of the listed Spanish pharmaceutical companies, with a 0.3% drop in capitalization, which translates into a stock market value of $1.17 billion (€1.03 billion). The value of the company’s shares has hardly changed with respect to the previous year and stands at $3.95 (€3.48).

Finally, Reig Jofre shares have fallen by 25.7%. The value of each share of the pharmaceutical company has gone from $4.98 (€4.39) to $3.7 (€3.26). The company closed the year with a market capitalization of $286 million (€252 million). In 2021, Reig Jofre boosted its international growth strategy with the opening of a subsidiary in Poland. This country became the eighth market in which the company operates directly with its own equipment.

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(Featured image by Myriams-Fotos via Pixabay)

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