Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GRIFOLS SA. We currently have 3 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Strong Bioscience but margin pressure continues
15 Mar 17
Grifols’ Q4 and FY 16 results came in largely in line with our expectations. Q4 16 revenue increased 3% yoy to €1.1bn, mainly driven by the Bioscience division, but partially offset by the weakness in the Diagnostic business. Profitability continued to be sluggish, with EBITDA declining 2% to €298m (the margin decreased 137bp to 27.2%), plagued by declining royalties from the transfusion diagnostics unit and higher plasma costs. For the full year, while revenue was up 3% to €4bn (in line with our estimate), EBITDA fell 2% to €1.14bn (vs. our expectation of €1.15bn). Net income increased 3% to €545m (albeit below our estimation of €554m), benefiting from lower financial expenses and a one-off gain of €24m (related to reclassification of investment in TiGenix). As announced earlier, Raimon Grifols Roura and Victor Grifols Deu have assumed the position of joint CEO, replacing Victor Grifols Roura, who will continue to be the chairman of the board. The company recently completed (in February 2017) the refinancing of debt of $6.3bn, lowering the cost of debt by c.100bp.
Acquires Hologic’s share of the NAT unit JV
21 Dec 16
Grifols announced the buyout of Hologic’s share of their existing JV of the NAT (Nucleic Acid Analysis) donor screening business for $1.85bn. The deal, representing an EV/EBITDA of c.11.6x, brings in R&D and manufacturing (including a plant in San Diego, US) of assays and instruments based on the NAT technology (Grifols already has commercialisation rights). The transaction is expected to be completed by Q1 17.
Bioscience strong while Diagnostic recovers, but margins remain subdued
29 Nov 16
Grifols Q3 16 results came in broadly in line with consensus as well as our expectations. Sales were up 3% yoy to €1bn (+4% at cc), driven by growth across all three divisions. Geographically (all at cc), while the US/Canada (+8%; Q2: +6%) and Rest of the World (+5%; Q2: +7%) continued to do well, Europe showed an improvement (-1%; Q2: -4%). EBIT remained subdued, declining 3% to €239m (the margin decreased c.150bp), plagued by the known issues (transition of operations between its two Clayton, North Carolina, plants, declining royalties from the transfusion diagnostics unit and higher plasma costs). The extent of the weakness in the EBIT margin is higher than our expectations. However, net profit increased 1% to €142m (the margin declined 26bp), due to lower financial expenses and the effective tax rate. The company has announced an interim dividend of €0.18 per share compared with €0.175 last year (after adjusting for the 2:1 stock split completed on 4 January 2016).
20 Apr 17
Although the last two months have seen a broadly neutral performance from the UK healthcare sector compared to a significantly more volatile 6 months prior, we continue to expect macro-events and increased geo-political risk to result in an overall neutral performance from the sector over the next period. However, company specific news is likely to drive a strong outperformance from selected mid-market companies. We retain our neutral sector stance whilst highlighting those we expect to outperform.
Positive top-line results in first iclaprim phase III clinical trial (REVIVE-1)
18 Apr 17
Motif Bio (LSE: MTFB, NASDAQ: MTFB), a late clinical stage antibiotic development company, announced positive results this morning in the first of its two iclaprim phase III clinical trials, REVIVE-1, comparing iclaprim to vancomycin in the treatment of acute bacterial skin and skin structure infections (ABSSSI). Iclaprim, a next-generation antibiotic targeting an underutilised mechanism of action which causes rapid killing of bacteria, is being developed for the treatment of serious and life threatening bacterial infections. On the key primary endpoint in the study, early clinical response at 48-72 hours after drug treatment began, 80.9% of patients on iclaprim achieved a positive response compared to 81.0% of patients on vancomycin, well within the 10% non-inferiority margin required by the FDA. Iclaprim was also shown to be safe and well-tolerated compared to vancomycin. With these positive results from REVIVE-1 we have increased the probability of success for the iclaprim development program from 65% to 75% raising our risk-adjusted NPV for Motif Bio to almost £240m or 122p per share (previously £210m and 107p per share).
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
N+1 Singer - Sinclair Pharma - EBITDA upgrade for 2017, but lower TP due to warranty claim and costs
19 Apr 17
We have updated product-level forecasts and included the £10m SVB debt facility and £5m warranty claim settlement with Alliance Pharma in our forecasts. The 6.3% upgrade to our FY2017 sales estimate (from £46.0m to £48.9m) brings expected EBITDA profitability forward by one year (to FY2017 from FY2018). We remain positive on the ongoing rollout of Silhouette Instalift® in particular and retain our Buy recommendation. However, higher expected sales & marketing costs and the warranty claim weigh on our valuation: we downgrade our target price from 42p to 37p.
Positive REVIVE-1 Phase III study data
18 Apr 17
Motif Bio (MTFB) has announced positive top-line results from REVIVE-1, its global Phase III study comparing iclaprim to vancomycin in patients with acute bacterial skin and skin structure infections (ABSSSI). Iclaprim achieved the primary endpoint of non inferiority when compared to vancomycin, in both the early time point and test of cure endpoint. Iclaprim offers clinical advantages over existing hospital antibiotics that include the avoidance of renal toxicity, fixed dosage regimen and early response indications. With data from REVIVE-2 due out in H2 2017 we maintain our 125p price target and Buy recommendation.