Grifols receives a boost from the European Parliament

The publicly-traded hemoderivatives company Grifols (GRF.ES) from the spanish market index Ibex35 (SPA35) has achieved a historic victory in the European Parliament, which could open up new business opportunities for the Catalan company. The European Parliament's General Assembly has overwhelmingly approved (483 votes in favor, 52 against, and 89 abstentions) new European legislation related to blood donation and its components, such as plasma.

This new regulation will allow for the compensation of plasma donors, a different approach from the previous model in which plasma donations in Europe were carried out altruistically. In Spain, Royal Decree 1945/1985 prohibited any form of compensation for blood or its components.

On several occasions, Grifols, which obtains over 75% of its plasma from the United States, had urged Europe to adopt a compensation system similar to the American one, where donors receive fees ranging from $50 to $60, and in Germany, a fixed fee of $25.

According to the company, this compensation is given as recognition of the commitment of plasma donors and the time and effort involved. The amount of compensation depends on the socio-economic context of each country, state, or donation center. It is emphasized that this compensation is considered supplementary and not a salary, and in a message directed at Americans, Grifols mentions that they can earn an average of $400 per month by donating plasma.

While the approval by the public health committee in July (59 votes in favor, 4 against, and 4 abstentions) was an achievement, negotiations with the member states are still required to determine the details of the compensation. However, the legislative text stipulates that the compensation should never exceed the total expenses incurred by the donor to ensure that these volunteers do not suffer a financial loss from their act of donation. Thus, it appears that at least the cost of donation is expected to be compensated.

Euro MPs emphasize that donations of these substances should remain voluntary and unpaid, although donors may receive compensation or reimbursement for expenses incurred during the donation process.

This approval comes at a time when Spain has a deficit of over 50% in plasma. In our country, the availability of plasma has decreased in recent years, and we depend on imports of hemoderivatives from the United States by 60%, primarily. According to data from the Spanish Federation of Blood Donors (FedSang), 90% of the plasma used in medical therapies comes mainly from five countries: the United States, Germany, Austria, the Czech Republic, and Hungary. These are the only countries that currently allow commercial plasma collection and monetary compensation for their donors.

Today, Spain needs domestic plasma, where the recorded deficit, according to the latest data, exceeds 50%. Currently, all autonomous communities in the country depend on plasma donations from other countries to produce essential drugs.

Although Euro MPs aim not to profit from this, perhaps the measure can incentivize the resolution of a problem, at least to reduce that deficit.

In a week also marked by the ECB's decision, Grifols has gained 10% in the week and, from this year's lows, has reached +65%, currently trading at +60%. Source: xStation