Cepheid shares tumble after outlook cut

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(Global Markets) - Shares of Cepheid (CPHD.O) fell as much as 23 percent after the molecular diagnostics company said it would take longer than expected to meet profitability goals due to costs associated with its plan to support access to its tests in developing countries.

Coupled with macro-economic conditions, including volatile currency rates and longer order cycles ahead of the U.S. presidential election, the company said it was lowering its full-year outlook.

The company now expects full-year adjusted earnings of between 38 cents and 42 cents per share, down from its prior forecast of 50 cents to 55 cents per share.

Cepheid said it installed 133 GeneXpert testing systems in its commercial clinical business and another 138 systems through its developing country program. During the same period last year, the company had installed 148 systems through the commercial program and 38 systems through the assistance plan.

Cepheid shares were trading down 20 pct at $34.79 late Friday morning on the Nasdaq.

(Reporting by Balaji Sridharan in Bangalore; Editing by Anthony Kurian)