Jan. 6 (Bloomberg) -- Integra LifeSciences Holdings, a maker of orthopedic implants, dropped the most in almost 15 years after cutting its revenue forecast and saying U.S. regulators cited the company for mold at a factory.
Integra shares dropped 20 percent to $24.49 at the close of trading in New York, the biggest single day decline slide since March 1997. The stock has lost 49 percent in the past 12 months.
Revenue in the fourth quarter will be $202 million to $203 million, about 3 percent lower than the company’s previous low end forecast, because of weaker sales, Integra said yesterday in a statement. Earnings per share, excluding some items, will be from 65 cents to 70 cents, the company said. Analysts projected the company would earn 74 cents, the average of 15 estimates in a Bloomberg survey.
“The shortfall will raise questions regarding the long term growth potential for the company,” Matt Miksic, an analyst with Piper Jaffray in New York, wrote in a note to clients today. “The announcement will likely prompt investors to re-think their views of the orthopedic space and utilization of surgical implants in general.”
In addition, the Food and Drug Administration sent the Plainsboro, New Jersey-based company a warning letter in December about mold found in an equipment storage area and a closet that houses filtered water used in manufacturing, Integra said today in a filing. The letter doesn’t restrict the company’s ability to make or ship products, Integra said.
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