Analyst Note| Karen Andersen, CFA |
Grifols' top-line growth rebounded in the second quarter, with 5.1% growth at constant currencies for its dominant bioscience segment. Sales in the U.S. and Canada declined 1.9% due to continued pressure on plasma collection and immunoglobulin supply, despite mid-single-digit price increases, which was countered by double-digit growth in Europe, China, and other international markets. While SG&A expenses showed solid cost control, Grifols continues to ramp R&D spending as it expands the pipeline (driven by recent Alkahest and Gigagen acquisitions), and cost of goods increased due to increased cost of plasma (both donor costs and fixed costs for unused fractionation/purification capacity). We continue to think Grifols is executing well on its strategy to acquire and expand plasma collection centers globally, and this is helping the firm expand supply of its products as we emerge from a lower period of donations during the pandemic.