Laboratorio Reig Jofre, S.A researches, develops, manufactures, and markets essential pharmaceutical products for people’s health, with a presence in more than 70 countries (59% of sales outside Spain). The company has four production centres: one in Barcelona (aseptic production of chemical and biological injectable products), two in Toledo (penicillin-derived antibiotics that require segregated plants due to their potential allergenic effects), and one in Malmö, Sweden (semi-solid products, topical products, and technologically advanced formulations such as enteral gels). It also has a logistics centre in Toledo. Reig Jofre specialises in niche services with high demand, with a focus on profitable growth and cash generation.
Reig Jofre has three business units (“BUs”):
- Pharmaceutical Technologies – PHT (45% of sales in 2024)
This business unit specialises in technology for the manufacturing of sterile, lyophilised injectables and antibiotics, particularly beta-lactams. The global CDMO services market is highly concentrated, with a relatively small number of competitors capable of offering production capacities aligned with demanding industry standards.
- Specialty Pharmacare – SPC (34%)
It focuses on the therapeutic areas of osteoarticular and dermatology, offering essential products for joint pain, tendonitis, and joint problems, as well as innovative solutions for onychomycosis, alopecia, and acne.
- Consumer Healthcare – CHC (21%)
This unit strategically focuses on the OTC ENT segment (ear, larynx, and disinfection), as well as on the development and consolidation of the Forté Pharma brand, specialising in products aimed at comprehensive well-being (sleep, stress management, general health, energy, and weight control, among others).
Reig Jofre has managed to grow its sales organically at an annual rate of 11% and its EBITDA at 15% annually from 2019 to 2024. Its EBITDA-to-sales ratio is 11.2% (2024), still far from its future target (15%). Higher value-added services and products are experiencing the greatest growth. For example, the osteoarticular area has increased sales from €16.3 million in 2019 to €70.15 million in 2024 (21% of total sales, with a very high market share in its main markets, as seen in Poland with a 41% share in its Cartexan product) or the CDMO area which has grown sales by 47%, now accounting for 19% of total sales.
Considering the current price1 and assuming an EV/EBIT multiple of 14x in 2031, an Internal Rate of Return (IRR)2 is estimated at 20.41%.
1Share price €3.23 – date May 27, 2025.
2Adjusted for net debt and associates. The projections presented are based on internal estimates prepared by Tenvalue.
