Shares of the American pharmaceutical company Amneal Pharmaceuticals Inc (NYSE: AMRX) plummeted 36% yesterday to hit an all-time low yesterday after the company lowered its 2019 core earnings guidance as it is having supply issues related to its epinephrine auto-injectors.
Producers of epinephrine auto-injectors have been experiencing supply problems since Pfizer Inc’s subsidiary Meridian Medical, which is also a supplier for Amneal Pharmaceuticals, has been seriously struggling with manufacturing issues.
The company cut down full-year adjusted earnings forecast to $425m-$475m, which is significantly lower from the previous forecast of $600m-$650m.
“(The lowered guidance) says that they are either expecting faster erosion of some of their existing in-market products plus not expecting new product launches that were baked into guidance for the year,” Ami Fadia, an analyst at SVB Leerink.
Amneal also plans to shrink its total yearly cost base by almost $50m and cut 550 jobs by the end of next year.