Euroapi collapses after lowering its annual targets

2023-10-10 06:29:00

Euroapi revises its forecasts downwards. The French pharmaceutical company now forecasts net revenue growth of between +3% and +5% in 2023, compared to +7% to +8% previously and a core Ebitda margin of between 9% and 11%, compared to 12.5% ​​to 13.5% previously. In reaction, the stock reached a low of 4.7 euros and the losses of October 10 erased 643.3 million euros of market capitalization. At 08:07 GMT, the stock was down 58.54%, heading for its worst fall in a session.

Price pressure

Euroapi explained the slowdown in turnover in 2023 by the evolution of the market environment, with pressure on prices for its API solutions and delayed projects for its CMDO activities.

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JPMorgan says the new guidance implies a 3% reduction in expected revenue for 2023 and a 25% reduction in expected Ebitda.

Euroapi said it was launching a strategic review aimed at adapting its operating model and suspending its 2023-2026 medium-term outlook communicated earlier this year. “Given the uncertainty over the mid-term outlook and revenue and margins, we expect the stock to decline at least in line with the expected consensus earnings reductions for 2023 and 2024, and therefore the stock will fall by 30 to 35%,” adds JPMorgan.

With Archyde.com (Clement Martinot, French version Corentin Chappron, edited by Kate Entringer)

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