Victor Golmer
Spanish regulators have reportedly found no significant errors in Grifols’ accounting of its debt, which had been the subject of a highly critical short-seller report back in January.
CNMV, the watchdog agency that oversees Spain’s securities markets, said that its investigation into the matter found “no evidence that the financial debt reported by Grifols does not correspond to reality,” Reuters reported Thursday.
The agency did state, however, that it had identified “deficiencies in the detail and accuracy of breakdowns and explanatory notes in some years,” Reuters said, quoting the CNMV.
Despite the deficiencies, Grifols will not be required to restate its accounts for 2021 and 2022, Reuters added.
Grifols has been under a microscope in recent weeks following a negative report in January by short-seller Gotham City Research that questioned the company’s accounting, particularly its debt and EBITDA figures.
Grifols pushed back on the Gotham report soon after it was released, asserting that it contained “false information” and “speculation.”
Shares of the Spanish drugmaker have tumbled 39% since the report was released on Jan. 9, although the stock did finish Thursday’s session 8% higher.
Last week, credit rating agencies Fitch and S&P cut the Spanish company’s credit outlook, citing concerns over cash flow generation and refinancing risks.