Grifols (NASDAQ:GRFS) said its second-quarter and first-half results kept the plasma-derived medicines company on track to meet its 2026 objectives, supported by continued growth in immunoglobulins, improving free cash flow and progress in its plasma-sourcing strategy.
Chief Executive Officer Nacho Abia said first-half revenue reached €3.574 billion, up 2.6% at constant currency, with Biopharma revenue rising 5.4%. Second-quarter adjusted EBITDA was €472 million, equal to a 25.2% margin, while first-half adjusted EBITDA totaled €854 million, up 2.4% at constant currency and representing a 23.9% margin.
Immunoglobulins Drive Biopharma Growth
President of Biopharma Roland Wandeler said immunoglobulins, or IG, remained Grifols’ primary growth engine, with revenue up 12.8% at constant currency in the first half. Demand was supported by the company’s GAMUNEX-C franchise, the U.S. launch of Yimmugo and growth in XEMBIFY, its subcutaneous immunoglobulin product.
XEMBIFY revenue grew nearly 34% at constant currency in the second quarter, according to Wandeler. Grifols expects IG demand in the U.S. and its core European markets to grow at a mid- to high-single-digit rate in the second half, partly offset by deliberate reductions in lower-margin markets. The company said XEMBIFY is expected to continue delivering strong double-digit growth.
Management also addressed competition in chronic inflammatory demyelinating polyneuropathy, or CIDP. Wandeler said physicians continue to view IG as a preferred starting therapy for many patients despite the emergence of FcRn treatments, citing IG’s broad mechanism of action in the multifactorial disease. He said Grifols continues to see growth in both the IG category and its own brand in CIDP.
Albumin remained a near-term headwind due to pricing in China. Grifols said the first half reflected the year-over-year impact of a mid-2025 price adjustment, but management sees signs of stabilization in pricing, prescriptions and customer demand. Rahul Srinivasan, the company’s chief financial officer, said Grifols expects the absolute level of albumin business in the second half to be in line with the second half of 2025.
Outside China, Wandeler said albumin demand was growing in the U.S., where Grifols offers an albumin-in-bags presentation, and in other international markets. Alpha-1 and specialty proteins returned to growth in the second quarter, rising 2% at constant currency. Grifols also launched FESILTY, a fibrinogen concentrate for congenital fibrinogen deficiency, in the U.S. in June.
Pipeline and Plasma Sourcing Initiatives
Grifols highlighted several clinical programs intended to broaden its protein portfolio. The company’s SPARTA Phase III study in Alpha-1 antitrypsin deficiency is scheduled to reach its last-patient, last-visit milestone in August, with top-line results expected late in the fourth quarter. The study is designed to assess preservation of lung density over three years and evaluates both standard and higher-dose regimens against placebo.
The company also dosed its first patient in a Phase III study of a 15% subcutaneous Alpha-1 treatment in June. In immunoglobulins, Grifols is conducting Phase III studies of GAMUNEX-C in secondary antibody deficiency and XEMBIFY in CIDP.
Management emphasized the role of Egypt and Canada in reducing Grifols’ reliance on U.S.-sourced plasma for international markets. Grifols expects ex-U.S. plasma collections to increase about 2.5 times by 2029, with Egypt expected to account for roughly half of those collections. Egypt represented about 25% of ex-U.S. collections this year, the company said.
Srinivasan said Egypt’s contribution is beginning to appear in the company’s results, though the full effect of the planned 1 million collections should be more visible in 2027. He said the company remains confident in the ramp-up, describing Egyptian donor centers as operating at high utilization.
Margins, Cash Flow and Balance Sheet
Reported gross margin was 37.6% in the second quarter and 37.1% in the first half. Excluding one-time costs, gross margin was 39.4% for the quarter and 38.6% for the half. The one-time costs were primarily associated with the closure of 29 U.S. donation centers, which resulted in €40 million of costs, including €25 million of non-cash charges.
Srinivasan said the center closures are intended to support a structurally more efficient operating model, with benefits expected toward the end of 2026 and into early 2027. Margin performance was also affected by the albumin pricing concession in China and weaker performance in Bio Supplies and other businesses, while product and geographic mix, plasma costs and Egypt’s ramp-up were supportive factors.
Total net leverage stood at slightly below 4.2 times at the end of the first half, while net secured leverage was 2.7 times. Grifols reported more than €2 billion in liquidity. The company said it refinanced debt during the first half and redeemed €500 million of its 7.5% 2030 bonds, its most expensive debt, while expecting cash interest costs to remain in line with 2025 levels.
Diagnostics and U.S. Biopharma IPO Review
In Diagnostics, Grifols launched the Evanzys Immunohematology blood-typing platform during the quarter and said its ISAR immunoassay and MONDAQA molecular platforms remain on schedule. Management said the dissolution of its QuidelOrtho joint business gives Grifols greater flexibility to address the immunoassay market once ISAR is ready, which the company expects around 2030 or 2031.
Grifols also said it continues to evaluate a potential initial public offering of its U.S. Biopharma business. The company said any transaction remains subject to legal and regulatory requirements, internal approvals and market conditions.
Abia also announced that Wandeler will leave Grifols to lead a biotechnology company in Basel, Switzerland. Abia said Grifols has a transition plan in place supported by its existing leadership team.
About Grifols (NASDAQ:GRFS)
Grifols, Inc (NASDAQ: GRFS) is a global healthcare company specializing in the development, manufacture and marketing of plasma-derived medicines, diagnostic systems and hospital supplies. With a core focus on immunotherapy and transfusion medicine, the company harnesses human plasma proteins to create therapies that treat a wide range of bleeding disorders, immunodeficiencies and neurological conditions. Grifols also supplies reagents and diagnostic instruments for transfusion centers and clinical laboratories, alongside intravenous solutions and medical devices for hospital use.
The company operates three main business units.
