Last week the company received a negative recommendation from the global broker UBS, referring to the potential negative impact the commercialisation of a new alternative treatment for autoimmune diseases could have on its sales of intravenous immunoglobin. The analysts cut the objective price from 25 to 18 euros by 28%. Grifols shares fell 8% on the day of the recommendation, although it closed the session down only 5.4%.
The day after the firm issued a statement sent to the regulator (CNMV) challenging the arguments put forward by the broker. The company presided by Victor Grifols indicated that the clinical studies of the alternative treatment to its immunoglobin are at an initial stage with few pacients in the study. The communique explained that “Its results are not conclusive in relation to the efficiency and safety of the products for the treatment of some autoimmune diseases.”
In the opinion of Renta4, the demand for Grifols immunoglobin will remain solid, especially in the US, above all taking into account that in that region the market share is 30%.
“In addition, it should not be forgotten that this new treatement is currently in clinical development (it is in phase II of III) and even if the trials proceed according tothe anticipated timetable and the results are favourable, its commercialisation would not beging until 2021. It should not be forgotten either that Grifols itself is continually opening new lines of investigation”.
In this sense in July 2017, it announced the acquisition of 44% of a US biopharmaceutical company which focuses its activity precisely on the Discovery of new biological treatements based on the use of antibodies.
After the shock caused by UBS, yesterday (Monday), Deutsche Bank lowered its objective Price for Grifols by 8% to 23 euros. The shares closed the day with losses above 3%.
