LONDON (Alliance News) - Chinese healthcare investor Cathay International Holdings Ltd on Monday noted a profit warning from its 50.56% owned subsidiary Lansen Pharmaceutical holdings Ltd.
Lansen now expects its net profit to show a "relatively substantial decline" for 2015 compared to 2014, hit by a "noticeable" decrease in profit from operations from its core business, and some one-off non operating losses.
The decline in profitability was attributed to a number of factors "already taken into account" by Cathay, it said, including a decline in sales of Leflunomide tablets after a rebranding, market launch costs of new products, and realigment of product development limiting production capacity in its healthcare business.
Lansen confirmed to shareholders and potential investors that its financial position remains stable, Cathay noted.
Shares in Cathay were untraded Monday morning. They last closed at 8.01 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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