2023-06-27 08:10:00
Grifols shares extend their comeback on the Ibex 35, with a rebound from their March lows of 36.5%. The company has started marketing a new drug in Spain.
Grifols A is in the news after learning that it has started marketing Xembify in Spain. It is a 20% subcutaneous immunoglobulin to treat primary immunodeficiencies and certain secondary immunodeficiencies. It has been marketed in the US since 2019 and Spain is the first European country where this product is marketed. It is approved in several European countries and in Australia. In 2023, in addition to Spain, it is scheduled to be launched in Wales (United Kingdom) and Australia, and in 2024 in France.
This is “positive news,” he said. Pedro Echeguren, Bankinter analystin a note in which he points out that “primary immunodeficiencies affect one in every 2,000 births.”
Grifols is developing this product to expand its commercialization in the US to the treatment of B cell infections in the US, a market whose potential size could reach $1 billion, recalls the expert. The company does not break down sales of Xembify.
Bankinter analysts give Grifols a ‘neutral’ recommendation, with a target price of 11.25 euros, which is slightly below the current price.
Follow the Grifols A price live
Grifols shares have experienced a real roller coaster in the first half of 2023. As of today, it has accumulated a rise of 6.6% so far this year, with a market capitalization of around 4,890 million euros.
However, if you look at its graph, you can see three very different phases: the first one is very positive, which raised the price to a maximum of 14.36 euros (February 21); a subsequent plummet to a minimum of 8.41 euros (March 20); and a recovery that began at the beginning of May, but which is experiencing many ups and downs. From its lows it accumulates a rise of 36.5%.
The change of course seems to come hand in hand with the revolution at its leadership, after confirming that Thomas Glanzmann added the position of CEO to that of executive president that he already held.
More recently, the blood products company announced that it is in negotiations for a corporate operation that will grant it around 1,400 million euros. Is about the possible sale of a greater part of its stake in the Chinese company Shanghai RAASwhich it entered in 2020 and of which it is the largest shareholder with 26.2% of the capital.
Grifols has suspended the payment of the dividend to its shareholders until the company’s indebtedness falls below four times the ebitda. With a net financial debt of 9,300 million euros, specifically the commitment involves lowering the EBITDA ratio from 7.1 times to 4 times in 2024. At the end of the first quarter, the EBITDA reported by Grifols was 173.6 million euro.
The sale of the stake in China, together with the cost savings plan implemented, should help to reduce this indebtedness and pave the way for the return of the dividend.
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