Why Shares of Grifols Were Up Tuesday
Shares of (NASDAQ: GRFS) were up 11.1% on Tuesday afternoon, after being up as much as 13.1% earlier in the day. The pharmaceutical company, which makes plasma-derived medicines, released first-quarter earnings on Tuesday morning. The stock is down less than 1% so far this year. The company's products range from diagnostics to detect infectious agents in blood or plasma donations, to the production of antigens used in immunoassay regents, to albumin, used to restore circulatory volume and protein loss in certain conditions.
Grifols released first-quarter earnings and revenue was up 23.2% year over year to 1.56 million euros ($1.71 million), led by gains in the company's biopharma segment. The company lost 108 million euros ($118 million) in the quarter, but that was due primarily to costs connected with laying off 8.5% of its workforce in a cost-cutting move, it said. In the long run, the cuts are expected to save the company $450 million a year from the personnel cuts.
The announcement comes a day after it announced a new leadership team, led by Thomas Glanzmann as new executive chairman and CEO. He is replacing Stephen F. Mayer, who resigned in February.
Source Fool.com
