Alchemia’s woes spark stock slide
ALCHEMIA has warned sales of its only successful drug are falling, in another blow for the Brisbane-based pharmaceutical developer.
The situation is so dire its marketing partner, India’s Dr Reddy’s, is trying to rejig a profit sharing agreement.
“This is not good news,” Morgans analyst Scott Power wrote in a note to clients after Alchemia informed the stockmarket yesterday.
Alchemia stock fell 4.3 to 4 yesterday with more than 50 million shares changing hands. The stock was trading at $1.57 in 2005.
The company had long struggled to get its generic version of an anti-clotting drug onto the market, finally breaking into the US in July 2011.
The drug’s profits never shot out the lights, and Alchemia yesterday said its quarterly share of profits were $1.25 million ($US980,000). That was 6.9 per cent down on the previous quarter.
Dr Reddy’s had increased market share. But overall sales were falling even as rebates were being increasingly used, Alchemia said.