Low-priced IVF competition slashes margins at Virtus Health
Shares in fertility clinic operator Virtus Health slumped Tuesday following a profit downgrade as lower priced competitors muscle in on the industry.
In the process, it has become the latest in a growing list of former small cap market darlings falling out of favour as earnings have faltered. On Monday, for example, shares in construction services outfit Aconex dived 40 per cent on a profit warning.
Virtus shares were down 16.4 per cent at $5.19, after touching a low earlier of $4.98 as investors dumped the shares on the downgrade.
In particular, Primary Healthcare has targeted the fat margins in IVF services, opening clinics in Melbourne, Sydney and more recently Brisbane, which appears to be causing problems for Virtus, the country’s largest IVF provider.
Last November, Virtus said it
Article source: News Source