Almirall sags after lowering guidance

Almirall S.A. (Madrid:ALM) fell €3.21 (25%) to €9.80 on Monday after lowering its 2017 top-line and earnings guidance. The dermatology company now expects 2017 revenues and sales to fall in the low double digits compared to 2016, and it guided to EBITDA of €140-€170 million ($160-$194 million). Previously, Almirall expected top-line growth of low- to mid-single digits and EBITDA growth in the mid-single digits over its 2016 figure of €227.6 million. Monday's move corresponds to a loss of €555 million in market cap.

The company attributed the change to three factors affecting its U.S. subsidiary, Aqua Pharmaceuticals. Almirall cited further inventory reductions beyond prior reductions during 1Q17, inappropriate overuse of savings cards in a patient assistance program, and generic competition for acne drug Acticlate doxycylcine hyclate. The company said its ex-U.S. business performance is “in line with expectations.” Acticlate is an oral tetracycline antibiotic...