Shares of Qiagen (QGEN) - Get QIAGEN NV Report tumbled more than 17% on Tuesday after the molecular diagnostics company warned that its third-quarter sales will be lower than expected and that its CEO would be resigning.
Shares of Qiagen were down 17.19%, or $5.51 a share, at $26.55 in morning trading on Thursday after the company said that weaker-than-expected growth in China will cut into its third-quarter sales, reducing them to 3% growth vs. prior expectations of 4% to 5%.
The Netherlands-based company also announced that its CEO, Peer Schatz, will resign, and that it was taking a pretax restructuring charge of about $260 million to $265 million, or roughly $1.14 to$1.15 a share after taxes, to write down development costs related to one of its molecular diagnostic technology offerings.
Chief Financial Officer Roland Sackers said he was "disappointed with the sales performance in the third quarter," though the company's efforts to free up resources and its strategic collaboration with Illumina (ILMN) - Get Illumina, Inc. Report "will help us deliver faster sales growth in the future while maintaining financial discipline."
Qiagen said it now expects to report adjusted per-share earnings of approximately 35 cents to 36 cents share in constant exchange rate terms in its quarterly results on Oct. 30.