Actelion, Europe's largest pure-play biotech company, said sales were likely to fall next year as pricing pressures bite and it faces more competition from rival drugs in the United States.

Actelion said third-quarter non-GAAP earnings before interest and tax (EBIT) fell 12 per cent to 124 million Swiss francs (€100 million), compared with a forecast for 125 million in a Reuters poll.

Actelion, trying to find its feet after battling shareholder activism and a string of product setbacks, is still eyeing a mid-single digit increase in product sales on a local currency basis this year despite more competition for Tracleer.

But the group is bracing for a sales drop in the low-to-mid single digit range due to increased pricing pressure globally and increased competitive pressure in the United States.

Actelion's main product Tracleer, which accounts for just under 90 per cent of group sales, is facing growing competition from Gilead's rival drug Letairis. Tracleer sales slipped 11 per cent to 356 million francs, below expectations.

Actelion, founded in 1997 by former Roche veteran Jean-Paul Clozel, is now hoping data on a number of promising medications - currently not priced into its share price - will restore investor confidence.

Reuters