A seemingly innocuous press release from SangStat Medical Corp. (SANG) on Thursday turned into a major rout for the company. s stock, as analysts scrambled to adjust their spending figures and earning estimates to match the company. s plans.

According to both analysts and Chairman and CEO Philippe Pouletty, the uproar illustrates the need for careful guidance by companies to analysts concerning their plans, particularly in a stock market that assumes the two sides are in close touch and that doesn. t like downside surprises. It also illustrates problems that arise for companies when analysts make overly aggressive predictions . a common problem in the sector, as well as the difficulties biotech analysts have had in making the shift from R&D companies to companies with revenues and earnings.