According to a report from the Wall Street Journal,"Grifols SA one of the world's top developers of plasma-based medicines, has thrived amid Spain's searing economic crisis by targeting sales abroad and making well-timed acquisitions".
"On Monday, it struck again, agreeing to pay €1.24 billion ($1.66 billion) to buy a diagnostic unit of Novartis AG . Buying the Swiss company's blood-screening technology will expand Grifols's core business: getting plasma from 150 donor centers in the U.S. to plants in California, North Carolina and Barcelona, where the plasma is converted into an array of sophisticated medicines sold world-wide.
The company's blunt-spoken president and chief executive, Victor Grifols, has raised eyebrows with his criticism of Spain's government.
In an interview last week, he praised the regulatory climate in the U.S., where much of his business is based. "It's a pragmatic country. It's a country where the rules are complied with," said Mr. Grifols, the grandson of the company's founder.
The Spanish government's power to control prices has made business in the country difficult, Mr. Grifols said. "For us, the government comes along and lowers the price 10%, from one year to the next," he said. "And on top of that, since it's the monopolistic client, it doesn't pay you or it pays you in one or two years."
Grifols's best-selling product by volume is albumin, which is used in treating a range of patients, such as burn victims and people undergoing cardiopulmonary bypass surgery. IVIG, which can be used to treat illnesses including leukemia and autoimmune diseases, is the company's best-seller by revenue.
The company's net profit rose 35% for the first nine months of this year to €267 million, led by a strong performance in the U.S. and, to a lesser extent, growth in emerging markets.
he Spanish government banned paid plasma and blood donations in the 1980s, prompting Grifols to expand into the U.S. to get the raw material for plasma products. Grifols expanded its U.S. foothold with the 2011 acquisition of plasma-medicine maker Talecris Biotherapeutics Holdings Corp. for $3.4 billion.
More recently, Grifols has been acquiring small Spanish biotech companies that were strained by the country's economic crisis".
