Bankinter | PharmaMar has abandoned Genómica, which will be liquidated. Its fully-owned subsidiary’s main business is molecular diagnostics, mainly via the development and commercialisation of detection kits. In 2021, this affiliate clocked up sales of 5.2 million euros (2.2% of the total), NAP of -3.2 million (vs +92.9 million for the group) and free cash flow of -3.2 million (+44.1 million euros for the group).
Bankinter analyst team’s view:
Positive news. The development and later sale of Covid-19 detection kits served as a lifeline for this business. However, once the pandemic was over, there was a contraction in activity. The sale of detection kits fell 61% in 2021 to levels which were below those at the start of the pandemic.
Genómica’s losses are equivalent to -3.5% of group NAP. To make this business profitable in an environment of decreasing prices and margins, the investments required would be high. This subsidiary’s assets are 2.9 million euros (0.8% of the total), the impact of a possible deterioration will be moderate and, foreseeably, offset in valuation terms with the improvement in free cash flow. We are revising our Target Price (previously 74 euros/share) and maintain our recommendation unchanged at Neutral.
