Catalan Grífols buys 60% of Progenika Biopharma and posts a net profit of €257 million

Barcelona (ACN).- Grífols has bought 60% of the Basque biotechnology company Progenika Biopharma’s capital, an investment of €37 million. The Catalan company is the world’s third leader in blood derivatives pharmaceutical products. The pharmaceutical company, which is based in Greater Barcelona, posted a net profit of €256.7 million for 2012, which quadruples the previous year’s results. In 2012, Grífols had a turnover of €2.62 billion and almost doubled its sales compared to the 2011 figures, with an increase of 46%. The good results are due to a significant reduction in debt levels and Grífols’ penetration into the United States market. A year ago it bought out its main competitor in the US, Talecris, which positioned the Catalan company as one of the main strategic pharmaceutical companies in North America. However, if the Talecris purchase is excluded, Grífols’ net profits would reach €307.8 million. According to the Catalan company, the positive 2012 results are based on a gradual internationalisation, which has represented a decrease in the Spanish market share and an increase in sales from countries and regions less affected by the economic crisis, with shorter payment periods and wider profit margins.

Grífols is the world’s third largest company producing haemo-derivatives, the pharmaceutical products that derive from blood plasma. The €256.7 million-profit represents 10% of the company’s sales. The Catalan pharmaceutical had a €2.620.9-billion turnover, which represents an increase of 46.0% compared to 2011. In addition, Grífols’ revenue represents a 13.8% increase compared to that of the previous year.

An international company

The weight of the Spanish market only represented 8% of Grífols’ revenue in 2012, while it was 10% in 2011. The sales abroad represented more than €2.407 billion, and the United States and Canada pop up as the main markets. 21.3% of the sales were made in Europe, a 6.2% increase compared to the previous year, reaching €559.3 million. In Latin America and Asia, sales continue to increase and currently both markets combined represent 14.2% of Grífols’ revenue, which means €371.6 million.

Furthermore, Grífols’ net wealth grew over 2012 and reached €1.88 billion, as a consequence of the larger profits. The net debt reached €2.396 billion. By the end of 2012, Grífols had achieved most of the investments foreseen up to 2015. In this vein, last year Grífols invested 156.1 million in enlarging and improving its producing facilities in Spain and the States. Within the next three years, up to 2015, the Catalan pharmaceutical will invest €400 million, 30% of which will be in Spain.

Investing in R&D

In addition, Grífols invested €124.4 million in 2012 in research and development, which represents 4.7% of its sales volume. With this investment, Grífols continues to lead the field of corporate medical research and development in Spain. During last year, the Catalan company backed 12 medical studies to develop new products. A result of Grífols’ investment in R&D is the number of patents obtained each year. By the end of 2012, the group, which has its headquarters in Sant Cugat del Vallès (in Greater Barcelona), had 1,153 patent certificates, 337 of which are currently in the end stages for their final approval.

Grífols ended 2012, with a slight decrease in the size of their staff, dropping from 11,230 employees in 2011 to 11,108 in December. However, in Spain, Grífols increased the size of its staff by 3.5%, increasing from 2,390 to 2,474 employees.

Grífols buys 60% of Progenika Biopharma

The Catalan company is continuing its expansion plan and announced this week the purchase of 60% of the capital of the Basque biotechnology company, Progenika Biopharma. The operation cost €37 million. Grífols paid 50% in cash and the rest in stocks without voting rights. Progenika Biopharma specialises in designing and producing genomic and proteomic tests for in vitro diagnosis, prognosis of illnesses, answering predictions and monitoring of pharmacological therapy. The Basque company is also working on a cutting-edge innovation regarding the development of molecular diagnosis technologies.