(Updates with closing share price in second paragraph.)
March 24 (Bloomberg) -- Stada Arzneimittel AG, Germany’s biggest maker of generic drugs, fell the most in more than two years after saying sales and profit will be less than forecast because of the conflict between Russia and Ukraine.
Stada sank 15 percent to 29.40 euros the close of trading in Frankfurt, giving the company a market value of 1.78 billion euros ($2.45 billion). The decline was the biggest since Sept. 21, 2011.
Sales and profit will show “slight growth” this year, the Bad Vilbel, Germany-based company said in a statement today. The drugmaker won’t achieve targets for 2014, Stada said, three weeks after forecasting it would meet those goals.
The stock slump shows the risk of expanding in developing nations for companies such as Stada, which said today that eastern Europe and Commonwealth of Independent States nations generated 31 percent of sales last year.
“The problem is that they haven’t set any new goals,” Daniel Wendorff, an analyst at Commerzbank AG in Frankfurt, said in a telephone interview. “Nobody knows how things will develop. That insecurity is weighing on the stock.”
The company reiterated the 2014 forecasts on March 3, predicting revenue of 2.15 billion euros, adjusted earnings before interest, tax, depreciation and amortization of 430 million euros and adjusted net income of 215 million euros.
“Against the backdrop of the strong devaluation of the Russian ruble and the Ukrainian hryvnia, as well as the uncertainties regarding the future business development in the context of the current CIS crisis, the executive board no longer expects to completely achieve the outlook for 2014,” Stada said today.
Chief Executive Officer Hartmut Retzlaff won’t comment further, a spokesman said. Retzlaff will hold a news conference on March 27, when the company announces full-year earnings. Stada published preliminary figures today for 2013.
Sales in Russia surged 22 percent last year to 418.8 million euros, Stada said. The country accounted for about 21 percent of the company’s revenue.
--With assistance from Eva von Schaper in Munich.