Sonic Healthcare shares have slumped with its pathology business

Dan Kitwood/Getty Images/Cancer Research UK

Sonic Healthcare shares dropped sharply after the company issued a profit warning on a decline in its pathology business.

Sonic says 2015 financial year earnings will be about 3% to 4% below guidance at $730 million.

The company says it’s seen lower than anticipated volumes in recent months and a more significant impact than previously thought from changes to fees under the Medicare Benefits Schedule.

However, 2016 earnings are expected to be between $850 million and $875 million, up about 20% on 2015.

Sonic shares are down more than 4% to $20.94.

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