The presence of Pharmamar in the IBEX 35 is complicated. The titles are struggling to stay positive in the year and that they came to rise 60 percent during the first quarter.
The biopharmaceutical has developed a turbulent behavior throughout 2021 and the fall from annual highs means that the stock is the least capitalized of the IBEX 35 with a market valuation of 1,290 million euros.
The decline to become the red lantern of the main indicator of the Spanish stock market also means that it loses 0.30 percent of weight with respect to the index, the first requirement analyzed by the IBEX Technical Advisory Committee (CAT) to access or remove a value from the selective.
For Pharmamar it is important to cut the falls in these levels. The group is the only Covid-19 pharmaceutical company with bears in the shareholding, and many investors are waiting with the loaded shotgun to increase the bearish pressure.
Pharmamar, red lantern of the IBEX 35 in capitalization behind Meliá
The Galician biopharmaceutical weighs 0.266 percent and only has Meliá below with 0.254 percent. The rest is already above the aforementioned 0.3 percent, with Indra being the one that weighs the least within the band, 0.342 percent.
The CAT meeting in December is key for Pharmamar because, beyond being the last of the year, the requirements of the candidates to enter the IBEX 35 will be analyzed and it could be one of those that will leave a free position in the index.
The CAT is clear: “The average capitalization of the aforementioned security to be computed in the index must be greater than 0.30 percent of the average capitalization of the index during the control period (six months), this implies excluding the securities of small cap.
The next key filter is that the security has been contracted in at least a third of the sessions of the control period and if this were not the case, it could still be chosen if it were within the first 20 values by capitalization.
Pharmamar’s business will not give big surprises
In any case, recalls the CAT, it is not necessary for a security to have been contracted during the entire control period, but, it emphasizes, “as long as the aforementioned value exceeds the minimums detailed above.” Therefore, 0.3 percent seems vital.
At the business level, no surprises are expected at Pharmamar. The biopharmaceutical continues to expand territories with its flagship drug, Zepcelcawhile working to submit the final marketing application for the product to the FDA.
Its total sale in the country would open the doors to achieve the same objective in the rest of the globe with the focus placed on the EMA, since sales of the product through compassionate use are on the rise in the Old Continent.
Yondelis stabilizes its sales
Yondelis, its longest-running antitumor in the portfolio, seems to stabilize sales of over 70 million euros a year after more than two decades in the market and Aplidin, as an antiviral against the coronavirus, no news is expected until March 2022.
The group of Galician origin postponed the conclusion of the trial in six months due to the shortage of closed hospitals to test the product and although it has recently accelerated this work and adjusted the number of hospitals that will participate, the completion date remains unchanged.
Pharmamar gambles on critical media
Meanwhile, the price of Pharmamar was again supported by the psychological support of 70 euros per share. This area sustained the declines in December and early August.
With the action subject to the discipline of the bears, it will be essential that the title conserves this support, although further down there is still another opportunity in the support of 67 euros, according to analysts consulted by finanzas.com.
If it were to lose this support, the next falling target is at the previous lows of March last year, in a range between 59.5 and 58 euros.
For Pharmamar it is important to endure these levels, since the stock market year is at stake. This Tuesday, the stock loses 0.6 percent in 2021.