Grifols acquires 10% stake in Bloodbuy, cloud-based marketplace for blood products

Rhea-AI Summary

Grifols has acquired a 10% stake in Bloodbuy, a cloud-based marketplace enhancing blood component distribution in the U.S. This strategic investment aims to improve access to vital blood products for hospitals and healthcare providers, addressing supply and demand challenges exacerbated by COVID-19. Grifols will gain a seat on Bloodbuy's Board of Directors to support its growth and gain insights into the blood-component market. Bloodbuy's platform is crucial in connecting blood centers and hospitals, aiming to reduce waste and improve the efficiency of blood supply management.

Positive

• Acquisition of 10% stake in Bloodbuy enhances market presence in blood component distribution.
• Grifols gains a Board seat, allowing for influence over Bloodbuy's growth and strategy.
• Bloodbuy's platform improves blood supply efficiency and reduces wastage, benefiting healthcare providers.

Negative

• None.

BARCELONA, Spain, July 23, 2020 /PRNewswire/ -- 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 acquired 10% of Bloodbuy (BloodSolutions, LLC), a cloud-based marketplace that facilitates buying and selling of blood components in the U.S.

Bloodbuy's (www.bloodbuy.com) proprietary technology platform and computer-based algorithms enable regional blood-collection centers to expand their customer base across the U.S., while providing hospitals and other healthcare providers greater access to vital blood components in an efficient and efficacious manner connecting supply and demand.

Along with this equity investment, Grifols will obtain a seat on the Bloodbuy Board of Directors where it will be able to not only contribute to Bloodbuy's growth but also closely analyze the blood-component-product marketplace, potentially allowing the company to make further investments in the digital healthcare space.

Bloodbuy's platform allows participating healthcare providers to supplement their blood component needs on both a recurring and on-demand basis, ensuring hospitals can continue to provide the best care possible for their patients while providing blood-collection centers the ability to distribute their lifesaving products more broadly. The platform also reduces wastage costs of precious biological products while improving profitability.

"Grifols has always been interested in how digital technologies can disrupt the healthcare model to deliver better patient care more effectively," said David Bell, Chief Innovation Officer of Grifols. "We believe Bloodbuy provides a unique opportunity to use technology to ensure critical blood components reach the patients who need them quickly and efficiently."

"COVID-19 has created unprecedented challenges for our blood supply, both with respect to supply and demand shocks related to social distancing, suspension of elective procedures, and other necessary public health interventions," said Chris Godfrey, Founder & CEO of Bloodbuy. "These externalities have had profoundly negative effects on blood product availability and utilization from region-to-region. Our online platform has played an integral role in connecting these geographies to create a digitally integrated network of blood centers and hospitals; so, we can easily redistribute available blood products and connect stakeholders around much-needed COVID-19 convalescent plasma."

Bloodbuy's cloud-based marketplace is available across the United States for all qualified hospitals, medical centers, integrated delivery networks, and blood collection centers.  Bloodbuy's current participants include some of the most prestigious medical institutions in the country, as well as nearly 30 independent blood collection centers.  The recent COVID-19 crisis has spurred further adoption as hospitals and blood collection centers employ methods to reduce operational uncertainty in this unpredictable environment.

According to a recent U.S. Department of Health and Human Services report, nearly 23% of all hospitals surveyed were forced to cancel elective surgery for one or more days as a result of blood inventory shortages.  Additionally, various studies have indicated some U.S. regions experience platelet wastage rates between 5% and 25% due to unpredictable supply and demand characteristics in local markets.

About Grifols

Grifols is a global healthcare company that since its founding in Barcelona in 1909 has enhanced the health and well-being of people around the world. Its four divisions – Bioscience, Diagnostic, Hospital and Bio Supplies – develop, produce and market innovative solutions and services in more than 100 countries.

As pioneers in the plasma industry, Grifols is one of the largest plasma companies, with a growing network of donation centers worldwide. It develops this plasma into essential medicines used to treat chronic, rare and, at times, life-threatening conditions. As a recognized leader in transfusion medicine, Grifols also offers a comprehensive portfolio of solutions designed to enhance safety from donation through transfusion. And the company supplies tools, information and services that enable hospitals, pharmacies and healthcare professionals to efficiently deliver expert medical care.

Grifols, with more than 24,000 employees in 30 countries and regions, is committed to a sustainable business model that sets the standard for continuous innovation, quality, safety and ethical leadership in the industry.

In 2019, Grifols' economic impact in its core countries of operation was 8.5 billion euros. The company also generated 148,000 jobs, including indirect and induced.

The company's class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE:GRF). Grifols non-voting class B shares are listed on the Mercado Continuo (MCE:GRF.P) and on the U.S. NASDAQ through ADRs (NASDAQ:GRFS).

For more information, please visit grifols.com www.grifols.com

LEGAL DISCLAIMER

The facts and figures contained in this report that do not refer to historical data are "future projections and assumptions". Words and expressions such as "believe", "hope", "anticipate", "predict", "expect", "intend", "should", "will seek to achieve", "it is estimated", "future" and similar expressions, in so far as they relate to the Grifols group, are used to identify future projections and assumptions. These expressions reflect the assumptions, hypotheses, expectations and predictions of the management team at the time of writing this report, and these are subject to a number of factors that mean that the actual results may be materially different. The future results of the Grifols group could be affected by events relating to its own activities, such as a shortage of supplies of raw materials for the manufacture of its products, the appearance of competitor products on the market, or changes to the regulatory framework of the markets in which it operates, among others. At the date of compiling this report, the Grifols group has adopted the necessary measures to mitigate the potential impact of these events. Grifols, S.A. does not accept any obligation to publicly report, revise or update future projections or assumptions to adapt them to events or circumstances subsequent to the date of writing this report, except where expressly required by the applicable legislation. This document does not constitute an offer or invitation to buy or subscribe shares in accordance with the provisions of the following Spanish legislation: Royal Legislative Decree 4/2015, of 23 October, approving recast text of Securities Market Law; Royal Decree Law 5/2005, of 11 March and/or Royal Decree 1310/2005, of 4 November, and any regulations developing this legislation. In addition, this document does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. The information included in this document has not been verified nor reviewed by the external auditors of the Grifols group.

 

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SOURCE Grifols

FAQ

What percentage of Bloodbuy did Grifols acquire?

Grifols acquired a 10% stake in Bloodbuy.

What is the purpose of Grifols' investment in Bloodbuy?

The investment aims to enhance access to blood components for hospitals and improve distribution efficiency.

How does Bloodbuy's platform benefit healthcare providers?

Bloodbuy connects blood collection centers with hospitals, ensuring a reliable supply of blood components and reducing wastage.

What strategic position will Grifols hold in Bloodbuy?

Grifols will have a seat on the Bloodbuy Board of Directors.

What challenges in blood supply is Bloodbuy addressing?

Bloodbuy is responding to supply and demand challenges intensified by COVID-19, impacting blood product availability.