Grifols SA (GRFS)

Grifols, S.A. is a vertically integrated global producer of plasma derivatives, founded in 1940 in Barcelona, Spain, and one of the leading specialty plasma therapeutics companies. It sources plasma, manufactures biological medicines from plasma-derived proteins, and sells and distributes the finished products to healthcare providers. These therapies treat conditions such as primary and secondary immunodeficiencies, CIDP, A1PI deficiency-related emphysema, hemophilia A and B, von Willebrand disease, and severe burns. The company also develops and sells in vitro diagnostics products and supplies infusion solutions, nutrition products and medical devices for hospitals. It believes it ranks in the top three plasma derivative producers worldwide, alongside Takeda and CSL, and is the world's largest producer of A1PI.

The business is organized into five units. Plasma Procurement runs the plasma collection centers and screens donors. It has no external revenue, because all plasma it collects is sold to the Biopharma unit. Biopharma fractionates and purifies plasma and sells products including IG, Factor VIII, A1PI and albumin, plus hyperimmune immunoglobulins, ATIII and Factor IX. It generated €5,005.4 million, or 82.5%, of 2022 net revenue of €6,064.0 million. Diagnostic develops and markets analytical instruments, reagents and software for blood bank and clinical laboratories, focused on transfusion medicine, hemostasis and nucleic acid testing (NAT) donor screening. It accounted for 11.1% of revenue. Bio Supplies sells biological products for non-therapeutic use and accounted for 2.4%. Others, at 4.1%, covers contract manufacturing for third parties, third-party plasma sales, research, and the Healthcare Solutions hospital pharmacy products.

Grifols' products and services are used by healthcare providers in over 100 countries, with commercial subsidiaries in more than 30. In 2022, the United States and Canada generated 63.6% of net revenue, Europe 17.0% and the rest of the world 19.4%. Diagnostic customers include blood donation centers, clinical analysis laboratories and hospital immunohematology services. The company is also present in Latin America and the Asia-Pacific region and has representative offices in the Middle East. Growth has come through acquisitions, including Talecris, Biotest AG, Haema, the Novartis diagnostic business and Hologic's NAT donor screening unit.

Operationally, Grifols covers plasma collection, transport and logistics, manufacturing, and marketing and distribution. At the end of 2022 it ran 392 plasma collection centers in the United States, Germany, Austria, Hungary, Canada and Egypt, and also buys plasma under third-party agreements. Frozen plasma is moved by two transport companies. Products are made at facilities in Clayton and Los Angeles in the United States and Parets in Spain, with combined fractionation capacity of about 22 million liters a year. A fractionation facility and two purification facilities in Montreal, acquired from GC Pharma, are being renovated. The company operates under FDA, EMA and GMP oversight and holds PPTA quality certifications. Its principal executive office is in Sant Cugat del Vallès, Barcelona, Spain. Its Class A shares trade on the Spanish exchanges and its Class B shares trade in Spain and as ADSs on NASDAQ.