Euroapi, a French pharmaceutical company, experienced a significant drop in its shares on Tuesday. The company slashed its sales growth forecast for 2023 and temporarily suspended its medium-term targets until 2026.
At 1244 GMT, Euroapi’s shares plummeted by 57% to EUR5.20, reaching a new record low for the company. Earlier in the day, the shares fell as low as EUR4.70. If this downward trend continues until the end of trading, it will mark the largest one-day percentage fall since Euroapi began trading last year.
Euroapi revised its net revenue growth expectations to a range of 3% to 5%, down from the previous projection of 7% to 8%. Additionally, the company anticipates that its core earnings before interest, taxes, depreciation, and amortization margin will be between 9% and 11%, compared to the initial estimate of 12.5% to 13.5%.
Analysts at JPMorgan noted that Euroapi’s downgraded guidance for 2023 and the uncertainty surrounding its 2024 expectations could result in next year’s core Ebitda being approximately 37% below consensus estimates. This uncertainty in the mid-term outlook is expected to have a negative impact on the company’s shares, according to JPMorgan.
Euroapi attributed the slowdown in revenue growth in 2023 to changes in the market environment. In response, the company plans to conduct a strategic review to adapt its operating model and address the decline in sales growth.
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