PARIS, June 7 (Reuters) – Euroapi shares plunged on Friday on the Paris Stock Exchange after the supplier of active pharmaceutical ingredients announced the appointment of an ad hoc agent to help it restructure its debt.
Around 08:50 GMT, the stock plunged 14.43% to 3.32 euros, by far the biggest drop in the SBF120, which fell 0.72% at the same time. This is its biggest daily drop since mid-March.
The ad hoc agent must help accelerate the discussions started last February concerning the financing of the Euroapi transformation plan called “FOCUS-27”, explains the company.
At the end of 2023, the net debt of the group, a former subsidiary of Sanofi, reached 171.0 million euros compared to 25.6 million euros the previous year.
According to JP Morgan, Euroapi however remains sufficiently funded for 2024, recalling that the discussion with the main players aims to secure financing in the medium and long term.
JPM also notes that the process was initiated by the company and not the creditors to expedite discussions.
“While we expect the stock to significantly underperform due to funding uncertainty, Euroapi’s detailed FOCUS-27 update, still expected before the end of this month, could ultimately provide some assurance on its medium and long-term financing plan and its prospects,” adds the broker. (Written by Federica Mileo and Mathias de Rozario, edited by Blandine Hénault)
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