The investment fund published a report on Tuesday accusing the pharmaceutical company of manipulating its debt ratios and gross operating earnings (EBITDA) to artificially reduce leverage, warning that its shares would be “uninvestable.” The Catalan blood derivatives company also indicated in the statement that it has “complete confidence” in its president and CEO Thomas Glanzmann, and noted that the board of directors “unanimously” approved all the transactions questioned by Gotham.
It was approved unanimously
“All relevant processes described, published yesterday [per dimarts] He pointed out that the aforementioned report has been unanimously approved by the company's Board of Directors and its various committees, and includes all the necessary information and supporting documents, including evaluations and third-party opinions.
Grifols shares, which after falling by up to 50% on Tuesday, closed the day with a loss of 25.91%, amounting to €10.55, were up almost 5% at yesterday's open. During the session, the headlines moved between profit and loss until they began to rise immediately upon learning of the company's latest statement. At the end of the day, headlines rose 11.99% after the previous day's decline. They closed at 11,815 euros.
In its attack to avoid all mistrust, Grifols today called for a conference call with analysts and investors to explain the situation and stop the bleeding of the stock market, in addition to explaining the situation and providing more details about the “false information.” And speculation, published by Gotham City Research, will accept questions.
The company's board of directors met on Tuesday to discuss the situation, and Gotham was accused of seeking to obstruct the proceeding for its own benefit. After defending yesterday's statement to the CNMV regarding its accounts, which Gotham questioned, and recalling that they are supervised by both Spanish and American regulators and audited by KPMG, Grifols decided to make arguments from the business side and ensure that the president has the support of the board of directors. board of directors.
As for other commercial aspects questioned by the Gotham report, Grifols said that in the case of Immunotic Biocenters, there is an agreement “to build and develop 28 new centers in the United States,” but Grifols is not obligated to finance them. They start their operation or plasma obtained within the first two years, but can obtain it after three years.
At this point, the $124 million payments cited by Gotham “relate to advance payments for construction of the centers and include construction and start-up costs through opening.”
“It has been questioned that the acquisition price of 25 already mature plasma collection centers is greater than the cost/capex of building a new centre. It should be clarified that the time required for the center to reach maturity with respect to size is three” to five years, as explained in Sect. the previous. Grifols also added in the aforementioned statement that the price per liter paid was in line with similar market prices and third party valuation reports.”
More than 100 years
The multinational company also states in its statement that it “has been in the plasma sector for more than 100 years,” that it “understands the business and its dynamics,” and concludes that its priority has always been “product safety.” and the well-being of donors and patients.”
This analysis firm's report, published on Tuesday, notes that “Grifols manipulated reported debt and EBITDA to artificially reduce leverage to six times, when it could exceed 10 or 13 times,” so he believes his actions “Worth zero,” accusations that Grifols denied at the time. The Gotham City Research document notes that both Grifols and Scranton, the royal family's holding company, which owns 8.4% of the company, are misleading investors about their financial statements.
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