ZURICH, March 7 (Reuters) - Swiss insulin pump maker Ypsomed , responding to a report on Wednesday that had sent its shares tumbling, said 2019/20 profit will likely fall amid market uncertainties but will then rebound as it expands with new subsidiaries.
For the current fiscal year, Ypsomed expects earnings before interest and taxes (EBIT) of 60 million Swiss francs ($63.75 million), unchanged from an outlook given in November. Ypsomed will report 2017/18 results on May 24.
For 2018/19, that figure is seen rising as it pockets a payment of 50 million francs from U.S. partner Insulet as the companies end a cooperation due to price disagreements.
For the following year, however, Ypsomed said EBIT is likely to decline temporarily, to be “followed by a clear and long-term increase in profitability”.
“The project business... continues to be subject to industry-specific uncertainties,” the company said in a statement.
“Many factors, such as the duration of clinical trials and market registrations, are not in Ypsomed’s hands. As a result, there may be delays in project commercialisation.”
Overall, Ypsomed said its pipeline of pumps and injection pens for people with diabetes is “well filled”.
Ypsomed issued the release after its shares fell more than 8 percent following a report in Swiss newspaper Finanz und Wirtschaft that Ypsomed Chief Executive Simon Michel had warned operating profit was due to fall more than previously expected.
The paper reported that EBIT in the 2019/20 financial year would likely drop to around 40 million Swiss francs, from previous forecasts of about 60 million, due to market uncertainty and delays for injection pens.
A company spokesman said on Wednesday that Ypsomed has not given specific forecasts for the expected 2019/20 fiscal year profit fall.
$1 = 0.9370 Swiss francs $1 = 0.9412 Swiss francs Reporting by John Miller; Editing by Michael Shields and Louise Heavens