(CercleFinance.com) – The Spanish biopharmaceutical group Grifols declared on Tuesday that it rejected all accusations contained in a report by Gotham City Research denouncing possible accounting manipulations intended to minimize the amount of its debt.
“We categorically deny and refute any allegations of accounting practices or mispresentation of our consolidated financial statements,” writes the world leader in plasma-derived treatments in a press release.
‘As a publicly traded company, Grifols communicates and discloses all relevant information regarding all its material operations with the highest level of integrity and transparency in order to reflect an accurate and fair picture of its financial statements,’ adds -he.
In a report dated Tuesday, Gotham City Research, a specialist in short selling on financial markets, accuses the group of having manipulated the presentation of its debt level and its operating profit (Ebitda) in such a way as to reveal a debt ratio of around 6x, when in reality it would be between 10x and 13x according to its estimates.
In detail, the fund accuses Grifols and its subsidiary Scranton Enterprises of consolidating Haema and BPC Plasma within their accounts, even though they hold no stake in these two companies, an approach that it considers ‘materially misleading and incorrect’.
‘If our assessment of Grifols’ real leverage were to be correct, the group would face significantly higher financing costs,’ warns Gotham, who even goes so far as to suggest a ‘probably zero’ value for the action in case its hypotheses are verified.
Reserved for a decline at the start of the session, Grifols shares fell by more than 32% on Tuesday morning on the Madrid Stock Exchange following these allegations.
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