Craneware, a software provider serving the US healthcare sector, has issued a profit warning citing challenges related to a restricted drug discount program. The Edinburgh-based firm, which derives the majority of its revenue from the United States, now anticipates full-year revenue between $205 million and $208 million for the fiscal year ending in June. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to range from $65 million to $67 million, consistent with the previous year but below market expectations.

The company attributed the revised outlook to a reduction in participation by pharmaceutical companies in a drug discount scheme that previously supported its growth trajectory. This restriction has curtailed Craneware’s ability to expand its revenue streams, dampening investor sentiment.

Craneware’s software solutions assist healthcare providers in managing revenue cycle processes, including pricing and reimbursement, which are influenced by pharmaceutical discount programs. As some drug manufacturers limit access to these programs, Craneware faces constrained opportunities in this segment, impacting its overall financial performance.

Despite maintaining a stable earnings forecast relative to the prior year, the company’s guidance fell short of analysts’ projections, reflecting broader uncertainties in the US healthcare environment and evolving pharmaceutical pricing practices. Craneware’s management will likely monitor the situation closely as it navigates the implications of changes in drug discount participation going forward.