Euroapi plummets on profit warning after prostaglandin production suspension
07/12/2022 08:12
** Shares in EUROAPI EAPI.PA drop 22% after the French
pharmaceutical company cut its 2022 guidance following a
temporary suspension of prostaglandin manufacturing in Budapest
** EUROAPI now anticipates net sales reaching about 980
million euros and a core EBITDA margin between 12%-13% in 2022,
citing loss of sales, related provisions, and remediation costs
** The group temporary suspended prostaglandin production at
its Budapest site after it identified some "good manufacturing
practices deficiencies related to documentation management"
** J.P.Morgan says "while these revenues could potentially
still be realised in 2023, the production suspension and
resulting guidance cut for 2022 is unhelpful and could
potentially dent investor confidence"
** The stock, which was spun off from Sanofi SASY.PA in
March this year, is heading for its worst day ever
(Reporting by Dina Kartit)
((dina.kartit@thomsonreuters.com))