Drastic move by Grifols. The company announced this Tuesday that it is preparing the IPO of its Biopharma business in the United States. In a statement, the company explains that the listing of a minority stake in its Biopharma business in the US through a public offering (IPO) would allow it to raise capital to strengthen its balance sheet, reduce debt and support investment in its strategic growth priorities.
The company has assured that it will maintain majority ownership of this business. Grifols has also insisted that this transaction reflects its vision of self-sufficiency, “being the only American company in the sector that does not depend on other markets.”
In addition, Grifols has insisted that it continues to advance its self-sufficiency initiatives in other key markets such as Canada and Egypt, which form the basis of its future growth and its long-term strategy to expand and ensure global access to plasma-derived therapies.
According to the pharmaceutical company, after the transaction, Biopharma’s business in the US would have its own board of directors, a dedicated management team and a corporate governance structure.
“This structure will allow the company to operate with a clear strategic focus, adapted governance and the necessary agility to compete and grow as a company listed in the United States. This positioning is aligned with the interest of investors in a US company focused exclusively on the plasma business and with a simplified capital structure after going public,” Grifols said.
The pharmaceutical company says it will continue to drive growth in its plasma and diagnostics businesses in other key markets, with improved profit margins thanks to its self-sufficiency programs in Egypt and Canada, as well as increased revenue from new products.
Likewise, the company explains that the operation reinforces its vision of self-sufficiency “by creating the first and only company that will not depend on plasma, manufacturing or supply from outside the United States.” The company adds that it has developed a fully integrated and self-sufficient model in the country, which covers the entire value chain, from plasma collection to manufacturing, logistics, analysis and distribution. This structure, according to the company, allows it to produce all the therapies it markets, guarantee continuity of supply and reinforce its resilience in a highly complex sector, with long cycles and strict regulatory requirements.
Biopharma’s business in the US, according to Grifols, operates in the world’s main plasma market, which supplies more than 60% of the world’s plasma and “continues to show strong structural demand, with the sector expected to grow at a high single-digit rate in the coming years.” Furthermore, the company highlights that the plasma sector is characterized by high barriers to entry, in which scale, infrastructure and regulatory experience are essential, and in which a limited number of companies concentrate the vast majority of global capacity.
“The US Biopharma business combines scale, operational maturity and recurring revenue generation, with continued growth opportunities through execution, efficiency and expansion of its product portfolio,” says Grifols, adding that it operates in a mature market, key to its growth, “supported by solid and predictable demand for plasma-derived therapies, a highly developed health system and a favorable regulatory environment.”
Grifols claims that it is the first operator in the plasma market in the United States, where it has nearly 300 donation centers in 40 states, and has important industrial facilities in California and North Carolina, with a workforce of more than 14,000 employees throughout the country.
