In the current market session, Grifols Inc. (NASDAQ: GRFS) is trading at $16.12, after a 4.68% gain. However, over the past month, the stock decreased by 10.39%, and in the past year, by 22.39%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently above from its 52 week low by 20.30%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Drug Manufacturers--General stocks, and capitalize on the lower share price observed over the year.The P/E ratio measures the current share price to the company's earnings per share. It is used by long-term investors to analyze the company's current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.View more earnings on GRFSDepending on the particular phase of a business cycle, some industries will perform better than others.Compared to the aggregate P/E ratio of the 18.32 in the Drug Manufacturers--General industry, Grifols Inc. has a lower P/E ratio of 16.05. Shareholders might be inclined to think that they might perform worse than its industry peers. It's also possible that the stock is undervalued.P/E ratio is not always a great indicator of the company's performance. Depending on the earnings makeup of a company, investors can become unable to attain key insights from trailing earnings.See more from Benzinga * General Motors: Price Over Earnings Overview * P/E Ratio Insights for GlaxoSmithKline * Stocks That Hit 52-Week Highs On Tuesday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Blood plasma and diagnostics company Grifols SA (NASDAQ: GRFS) is set to completely acquire Alkahest Inc, a biopharmaceutical startup focussed on neurodegenerative and age-related diseases, for $146 million on a debt-free basis.What Happened: Grifols will buy the remaining equity in Alkahest without having to resort to additional borrowing, the company said in a statement.The drugmaker added it's likely to complete the transaction early next year. "Now we see a wealth of plasma-derived and non-plasma therapeutic candidates identified by Alkahest that can significantly support the unmet needs of many diseases associated with aging," Grifols co-CEO Victor Grifols said. Why It Matters: Grifols previously held a 48% stake in Alkahest, according to a filing with the United States Securities and Exchange Commission, Stat noted earlier.The acquisition will reportedly give the Barcelona-based Grifols new resources in the development of cures for diseases related to aging.The two companies have worked together in the past as development partners as Alkahest sourced blood plasma of young donors from Grifol's collection centers based in the United States and Europe, Stat noted.While this particular acquisition doesn't require tapping the debt market, series of companies have resorted to borrowing to finance merger and acquisitions including Johnson & Johnson (NYSE: JNJ), which said last month it was borrowing .5 billion in bonds to purchase Momenta Pharmaceuticals, Inc (NASDAQ: MNTA) in a deal valued at $6.5 billion. Price Action: Grifols shares closed nearly 2% lower at $15.40 on Friday.Photo courtesy: Zarateman via WikimediaSee more from Benzinga * Apple, Google, Dropbox Face Italy Antitrust Probes Over Cloud Computing Services * Amazon Bans US Import Of Plant Products To Counter Mysterious Chinese Seed Shipments * Elon Musk Takes Volkswagen ID.3 Electric Vehicle On A Test Drive: 'For A Non-Sporty Car, It's Pretty Good'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Grifols (MCE: GRF, MCE: GRF.P, NASDAQ: GRFS), a leading global producer of plasma-derived medicines and a leader in the development of innovative diagnostic solutions, today announced it has entered into a transaction to acquire the remaining equity of Alkahest, Inc. in exchange for a total price of $146 million, on a debt-free basis. No additional financing will be required.