GRFS News & Events

Health Canada has imposed new terms and conditions on all of Grifols' paid plasma centers following multiple failed inspections that identified recurring systemic deficiencies, including inadequate donor screening, poor investigation of errors, insufficient staff training, and failure to follow operating procedures, Kristin Annable and Michelle Allan of CBC News reports. The action follows two donor deaths in Winnipeg and deficiencies found during an inspection of the company's Canadian head office, which oversees all 16 collection sites. A spokesperson for Health Canada says the conditions will remain in place until Grifols shows "sustained compliance" with blood regulations at all licensed sites.

Grifols says its Strategy Committee has proposed, and the board has approved, the initial public offering on the U.S. stock market of a portion of the shares of the company's U.S. Biopharma business. If the transaction is successfully completed, Grifols would float a minority stake in Grifols' Biopharma U.S. The parent company, Grifols S.A., would maintain its listing in Spain and would retain control of the U.S. business. The proposed IPO is intended to raise capital to "support the company's strategic priorities, including debt reduction and investment in growth across key markets where it is advancing its self-sufficiency projects." Grifols says it will continue to grow its plasma and diagnostics businesses in other markets, "with improved profit margins from our self-sufficiency programs in Egypt and Canada and growing revenues from new products." Shares of Grifols are up 6% to $8.05 in premarket trading.

According to a regulatory filing, Grifols reported that, as a consequence of Grifols' self-sufficiency programs for its Biopharma businesses, its Board of Directors has decided to initiate a process to evaluate a potential Initial Public Offering in the United States of a portion of the shares of its subsidiary and parent of its U.S. Biopharma business. Any such transaction remains subject to, among other things, regulatory and legal requirements, internal approvals and market conditions. There can be no assurance that any IPO will be undertaken or completed by the company. Regardless of any such IPO being undertaken or completed, Grifols will continue to trade in Spain through the automated information system.