Novartis to Buys Selexys Pharma; Essentra, Mitie Plunge

Sarla Buch
21 Nov, 2016
New York City

Essentra lowered operating profit forecast after weak revenues in health and personal care packaging businesses. Mitie net swung to profit but forecasted profit may below management expectations. Novartis agreed to buy U.S.-based Selexys Pharma for $665 million.

[R]4:00 PM Frankfurt – Essentra lowered operating profit forecast after weak revenues in health and personal care packaging businesses. Mitie net swung to profit but forecasted profit may below management expectations. Novartis agreed to buy U.S.-based Selexys Pharma for $665 million.[/R]

In London trading, FTSE 100 index edged up 4.42 to 6,780.05 and in Frankfurt the DAX index gained 46.90 or 0.4% to 10,710.46.

In Paris, CAC 40 index increased 27.97 or 0.6% to 4,532.16.

Essentra Plc tumbled 20.5% to 392.80 pence after the U.K.-based specialty plastics and packaging components maker lowered operating profit forecast for fiscal 2016 between £137 million and £142 million compared to the previously estimated range of £165 million to £165 million.

In fiscal 2015, Essentra reported operating profit of £171.5 million and the company blamed the decline in 2016 profit on the weakness in health and personal care packaging businesses in the United States and in the UK.

Mitie Group Plc plunged 7.4% to 194.50 pence after the U.K.-based outsourcing services provider said revenues in the first-half ending in September dropped 2.6% from a year ago to £1.1 billion.

Net in the period swung to profit from a year ago to £102.8 million compared to the loss of £35.2 million and diluted loss per share swung to 29.2 pence form diluted earnings per share of 9.6 pence.

Mitie forecasted operating profit for fiscal 2017 may be below management''s previous expectations as customers delayed placing orders and having no material rebids until 2019.

Novartis AG slipped 1.5% to 70.50 Swiss francs after Switzerland-based drugs and healthcare products maker today agreed to acquire the U.S.-based, drugs maker for hematologic and inflammatory disorders, Selexys Pharmaceuticals Corp for about $665 million.