Spanish securities regulators said they didn’t find any big mistakes in Grifols SA’s financial reports, though the pharmaceutical company does have some deficiencies in certain figures.
“No significant errors” have been identified in the financial reports nor has any evidence been found that “the leverage ratio reported by Grifols isn’t aligned with reality,” the CNMV regulator said in a statement published Thursday by Grifols. However, “the CNMV has found relevant deficiencies” in certain so-called alternative performance measures, specially in earnings before interests, taxes, depreciation and amortization, and in the debt-to-Ebitda ratio, according to the statement.
The regulator opened its review of Grifols’ earnings in January after the company was targeted by short-seller Gotham City Research, which accused Grifols of deceptive accounting and poor governance. Although Grifols has denied the allegations, its shares have dropped about 40% since Gotham’s report was released on Jan. 9.
Related: Spanish Regulator is Set to Publish Grifols Review ‘Soon’
The company has has made several attempts to calm investors, including naming a new chief executive officer and cutting the founding family off from management. The Grifols family are the company’s largest shareholder.
The CNMV said the main deficiency “was in the use of adjusted Ebitda” relating to non-controlling stake in other companies.
The regulator has given Grifols 15 days to publish “commitments to adequate its alternative performance metrics in upcoming financial reports” as well as additional data on ebitda and net financial debt for relevant companies in which it has non-controlling stakes.
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