In response to concerns raised by the Gotham City Research report, Grifoli, a pharmaceutical company based in Barcelona, tries to reassure investors and dispel doubts about its financial situation. The Gotham City report called into question Grifols’ accounting, causing a 28% drop in its stock value since its publication.
In a conference call to investors, Grifols Vice President Raimon Grifols said the sale of 20% of Shanghai RAAS Blood Products for $1.8 billion will proceed as planned in the first half of 2024, despite the recent decline in the share value. The proceeds from this sale will be used to reduce Grifols’ debt in 2025.
CEO Thomas Glanzmann recognized the opportunity to improve the company’s communication and governance. However, he rejected Gotham City’s allegations, saying they were based on information previously approved by auditors and regulators. Glanzmann denounced Gotham City’s actions as motivated by “self-interest and financial gain”.
Chief Financial Officer Alfredo Arroyo Guerra stressed that Grifols is working to simplify its structure and guaranteed that future transactions will be simpler. The company announced a lawsuit against Gotham City, which reportedly knocked $2.5 billion off its market capitalization.
Regarding the specific allegations contained in the report, Grifols denied wrongdoing in the consolidation of Haema AG and BPC Plasma, companies sold to Scranton Enterprises in 2018. Arroyo Guerra explained that the consolidation is necessary because of a purchase option that Grifols holds.
Despite these efforts, Grifols stock continued to drop 11% after the analyst call. The board of the Spanish Association of Minority Shareholders (AEMEC) is considering legal action, leaving a climate of uncertainty over the future of Grifols and its response to the Gotham City allegations.
TECHNICAL ANALYSIS: GRIFOLS
The 9.42 euro level is the one that attracts all my attention, a daily close below this level would confirm the downward break of a broad bearish channel and increase the chances of a further decline, at least up to 5.68 EUR. Therefore, how the actions end today will be crucial in the future.
2024-01-12 10:47:00
#Grifols #shares #stock #market #fall #conference #call