Grifols plans to hold a conference tomorrow, Wednesday telephone with investors with the objective to refute the Gotham City Research accusationsaccording to analysts from Banco Santander and Citi cited by Bloomberg.
The bearish fund published a report early this morning in which it accused the pharmaceutical company of manipulating its debt ratios and results. gross operating income (Ebitda) to artificially reduce leverage, which is why it warns that its shares would be “non-investable.”
Gotham points to other red flags, including undisclosed transactions with Grifols related parties, which would reveal that, at the very least, the quality of Grifols’ results “leaves much to be desired.”
On Monday, the fund communicated to the National Securities Market Commission (CNMV) a short position on Grifols of 0.57% of capital. In this way, the shares at Monday’s closing price were valued at 34.6 million euros. With the price at which the shares closed today, the potential profit for Gotham would be around 9 million euros.
The pharmaceutical company issued a statement early this morning denying Gotham City Research’s accusations and calling them false. Subsequently, she has expanded her defense with another statement sent to the CNMV in which she assures that the fund’s intention is to lower the share price.
Grifols has reviewed the accounting treatment it has carried out in the operations that appear in the Gotham report and has recalled that this treatment “is fully endorsed” by its auditor, KPMG.
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Furthermore, it has ensured that the operations “have been recorded in the company’s books and in its public accounts”presented to both the CNMV and the US SEC, which is why it states that there is no new information that can be considered hidden.
Grifols argues that it maintains control of Haema and Biotest even though it does not own their shares, although the statement does not mention why Scranton – the investment company of the Grifols family along with directors and former directors – also consolidates these companies in its accounts, which is one of the criticisms that Gotham makes.