Grifols SA (GRF), Europe’s largest maker of blood-plasma products, jumped the most in six months after Exane BNP Paribas said the global market for protein therapies derived from the material will expand in the next two years.
Grifols rose as much as 4.9 percent to 28.71 euros, the biggest intraday gain since Oct. 5, and was trading up 4.5 percent at 1:43 p.m. in Madrid in the biggest gain on the 35- stock Stoxx 600 Health Care Index. (SXDP) Volume was 68 percent of the three-month daily average.
Prices charged by the top three plasma-therapy makers have increased as much as 4 percent for the second year in a row in the U.S. as capacity use for the products is expected to reach a 10-year high of as much as 90 percent through 2015, Julien Dormois, a Paris-based analyst at Exane BNP Paribas, wrote in a report. Dormois, who has an outperform recommendation on Barcelona-based Grifols, raised his stock-price estimate by 21 percent to 35 euros.
CSL Plasma Inc., Baxter International Inc. (BAX) and Grifols control almost 70 percent of the plasma market, and “we see strong upside” from accelerating industrywide growth, Dormois wrote yesterday. “Pricing power is back.”
Grifols purchased North-Carolina based plasma collector Talecris Biotherapeutics Holdings Corp. in June 2011 to expand in the $7 billion U.S. market for blood-based infusions, used to treat rare and life-threatening conditions.
The U.S. accounted for 64 percent of Grifols’s revenue last year, according to data compiled by Bloomberg. Grifols owns 150 plasma donation centers in the country, where the company collected 5.8 million liters of plasma in 2012, the Exane analyst said. The Talecris unit offers average prices of as much as $200 a month to blood donors, according to the division’s website.
Plasma is the clear, liquid portion of blood which contains a large number of proteins, particularly those responsible for blood clotting and protecting the body from infections.
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