(AOF) – Euroapi (-25.08% to 2.452 euros) posted the biggest drop in the SRD market and the SBF120 index this Friday, losing a quarter of its value after announcing the suspension of its 2024 objectives. action of the specialist in active pharmaceutical ingredients brings its losses on the stock market to 59% since January 1. At the end of February, the company revealed degraded annual results and outlook, leading to a fall of 43% in a single session. The former Sanofi subsidiary is trading at its historic lows after being listed on the stock market in 2022 at a price of 12 euros.
Euroapi announced the suspension by its Italian subsidiary Euroapi Italy SRL of the production of all APIs (active pharmaceutical ingredients) at its site in Brindisi, in the south-east of the country. Last year, sales from this site amounted to 63 million euros, of which 43% were made with Sanofi. The value of Brindisi’s non-current assets has been fully written down in the 2023 consolidated accounts.
The Brindisi site produces 11 APIs and intermediates, mainly anti-infectives (including spiramycin, rifaximin, rifampin, and teicoplanin). Following an internal audit, quality control failures, attributable to potential shortcomings at local level, were identified and are being investigated in depth. Production will remain suspended until further notice.
This situation should impact the group’s operational and financial performance. Consequently, the 2024 outlook is suspended.
A revision of the 2024 outlook will be made public during the second quarter of 2024, during the planned communication on the implementation and financing of the Focus-27 project, announced on February 28, 2024.
“In 2022, the group had already been affected by a production stoppage at an industrial site in Budapest, specializing in the production of prostaglandins, which had prompted it to lower its objectives,” recalls Invest Securities.
The relevant health authorities have been informed. The company has initiated a forensic audit and will inform its customers.
© 2024 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
