By Nathan Vifflin
(Reuters) – French pharmaceutical supplier EuroAPI has engaged a third-party mediator, known as a mandataire ad hoc, to handle financing discussions with creditors as it struggles to serve a growing pile of debt.
WHY IT’S IMPORTANT
EuroAPI, which was spun off from French drugmaker Sanofi in 2022, becomes the latest European company to face financing difficulties after a period of high interest rates and slow business.
The company’s fate deteriorated when it announced a pause in production at its Brindisi site in Italy, which suspended its outlook for 2024.
MARKET REACTION
The shares fell 7.2% to 3.6 euros at 0718 GMT to the bottom of Paris’ SBF120 index.
CONTEXT
EuroAPI started discussions with creditors in February after the company’s net debt surged to 171.0 million euros ($186.18 million) at the end of 2023 from 25.6 million euros the previous year.
On Thursday, EuroAPI said it is eligible for up to 1 billion euros in European Union funds dedicated to the pharmaceutical sector.
Including today’s fall shares of EuroAPI are down 37.17% year to date. The shares have fallen 71% from their stock market debut price of 12.5 euros two years ago.
($1 = 0.9184 euros)
(Reporting by Nathan Vifflin; editing by Jan Harvey and Jason Neely)
