Here's why shares in FTSE 100 medical giant Convatec are plummeting

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ConvaTec makes products used in acute wound care and critical care (Source: Getty)

Shares in medical technology firm Convatec tumbled this morning after it warned full-year organic revenue growth would be lower than expected.

The FTSE 100 firm's share price has dropped 21.2 per cent to 220.1p in morning trading.

The company's performance in the third quarter was "severely" impacted by supply issues in both advanced wound and ostomy care and a lower than anticipated revenue contribution from new products.

Because of that, Convatec slashed its full-year organic revenue growth to between one and two per cent dependent on the degree of success in resolving those issues.

Earlier this year the firm said it expected to generate full-year organic revenue growth of more than four per cent.

Read more: Convatec's shares plummet following news of a rare drop in profits

In August, Convatec's shares plunged after the firm announced a drop in profits.

The company was named the largest European healthcare listing in history after its private equity owners floated it at a £4.4bn market cap in 2016. Shares had climbed to a high of 344p this summer before starting to move lower.

Convatec's revenue grew to $445.5m in the third quarter, up 5.1 per cent at constant exchange rates, or 3.3 per cent organically.

Paul Moraviec, chief executive of the firm, said he was "disappointed" that the firm's performance was hit in the third quarter.

He said:

Despite these setbacks, the business remains well positioned in large, structurally growing chronic care markets, with strong brands, differentiated products and a strong and innovative R&D [research and development] pipeline.

We understand the operational issues we need to address, and are determined to drive performance and to deliver margin improvement in the future. However, given what we have experienced in the third quarter, we are reviewing the financial implications for growth and margins in FY2018 and will provide further guidance at our preliminary results in early 2018.

Tags: FTSE 100