UCB shares dropped as much as 18.4 percent to 21.60 euros,  their lowest level since August 2003, as investors took a dim  view of the latest in a series of setbacks to hit the group. This month, U.S. health officials warned its prescription  cough medicine Tussionex could be fatal for young children if  taken frequently, though it is not approved for those aged  under six. UCB has also yet to convince regulators its would-be  blockbuster Cimzia should be cleared for treating the bowel  disorder Crohn’s disease. The European Medicines Agency on  Thursday reaffirmed its view that Cimzia should not be  approved. Last year, UCB achieved net sales of 52 million euros  ($81.7 million) from Neupro, a relatively new product. “Depending on the resolution timeline of this issue, the  full effect on UCB’s business is not yet known. Therefore,  UCB’s 2008 financial outlook is under review and will be  updated as soon as possible,” the company said in a statement. UCB said the recall decision was not the result of  contamination or toxicity but that the clinical performance of  some samples on the market was not as required. “As a result, there will be an out-of-stock situation with  Neupro in the United States in late April 2008. In the European  Union and most other regions, Neupro supply is sufficient,” it  continued. A spokeswoman said it was not clear how long UCB would be  out of stock in the U.S. and likewise when it would be able to  give a new 2008 outlook. KBC Securities said in a research note it had reduced its  forecast for Neupro sales this year to 88 million euros from  110 million, as well as its peak annual sales estimates and cut  its target price to 33.50 euros from 35.00 euros. “This disruption comes at a crucial time in the launch  phase of this important franchise,” Deutsche Bank wrote, adding  Neupro’s launch for restless legs could be significantly  delayed by regulators’ insistence that quality problems be  resolved. Neupro, delivered to patients in the form of patches stuck  on the skin, is approved to treat early-stage Parkinson’s in  the U.S. and early and late stages of the disease in Europe. The patches were launched in Europe in 2006 and in the U.S.  in July 2007. It filed for approval to treat restless legs syndrome in  the United States and Europe in December. UCB last month forecast revenue would decrease to about 3.4  billion euros in 2008 from 3.6 billion last year. Recurring  core profit (EBITDA) would be about 650 million euros and net  profit was expected to exceed 100 million.
UCB recalls Parkinson's patch, reviews 2008 outlook.