Euroapi on the Stock Market: How to Invest? Photo provider: euroapi.com
This week, Café de la Bourse is interested in the Euroapi company, which took the first step in the stock market on Friday, May 6, 2022. What is the Euroapi company doing? Was Euroapi’s IPO successful? What do you expect from the Euroapi stock market in the coming months? I will explain in detail in this article.
What is the Euroapi company doing?
A subsidiary of Sanofi Euroapi specializes in the research and development of active ingredients in pharmaceutical products. The company offers vitamin B12, prostaglandins, oligonucleotides, peptides, corticosteroids and hormones, anti-infectives, opiates (morphine, codeine, thebaine, etc.) and analgesics, among others.
We are a world leader in the field of active ingredients, with a portfolio of approximately 200 products and a wide range of technologies. Due to its separation from Sanofi, Sanofi is the world’s largest producer of small molecule active ingredients, second only to Teva in Israel.
EuroAPI has six production bases in Brindisi, Italy, Frankfurt, Germany, Hevalil, England, Saint-Aubin Leerbuch and Vertolaye, France, and Újpest, Hungary.The company is hiring 3,350 Covers more than commercially with employees 80 Countries of the world.
Also read Eurofins Scientific Stock Market Analysis
Was Euroapi’s IPO successful?
The spin-off was first announced in 2020. Sanofi sought to move away from the business and focus its efforts and resources on low-margin active ingredients to develop medicines for oncology, immunology, and rare diseases.
At that time, there was concern that European drug producers would rely on API producers in countries such as India and China, especially if the supply chain was disrupted by COVID-19. These concerns were exacerbated only by the war in Ukraine.
Two years later, Euroapi’s first stock market step was successful even in a difficult stock market environment. Global equities have been at their lowest levels for over a year, and investors anticipate further interest rate hikes for Americans, especially concerned about their impact on growth. Of China’s zero COVID policy.
However, Sanofi’s subsidiary, which specializes in the active ingredients of pharmaceuticals, 8% Peaks on May 10th since IPO on Friday May 6th 20% Trial price (14.5 euros). Trading began on Friday, May 6th. 12 euros Posted an increase per share 13% When CAC 40 goes down on the day of its introduction 1.7%.
At the end of the operation, Sanofi will not be able to sell its shares over the next two years and will only own 30% of EuroApi. L’Oréal, a major shareholder of Sanofi, will not sell its securities this year. It should be noted that the French state is also a 12% shareholder.
What do you expect from Euroapi’s share of the stock market?
EuroApi has many assets to run in the vibrant active ingredient market.Indeed, the active ingredient market is valued at € 72 billion in 2019 and is expected to grow at an average rate. 6% to 7% Every year until 2024.
By operating independently, Euroapi will increase sales to third parties, develop partnerships with other pharmaceutical companies, take advantage of new growth opportunities, and maintain some financial robustness with Sanofi. I am planning to do it. 30%.
The company wants to be a European solution to possible shortages in the health sector and guarantee the independence of the European continent.Expected sales are about 1 billion euros In 2022, Euroapi will be ranked number one among small molecule APIs, and its powerful innovation and R & D capabilities will accelerate the development of more complex molecular segments.
The real challenge for Euroapi is its short-term performance in the stock market, which has been struggling since the beginning of 2022. The medium- to long-term outlook is very good. In addition, brokers JP Morgan and Deutsche Bank have not been misunderstood by initiating follow-up of purchase files.
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