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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by sunshine7on Oct 24, 2015 7:28pm
376 Views
Post# 24224204

Acquisition Primer...

Acquisition Primer...The details disclosed on Monday... Continued strong free cash flow Broadly diversified portfolio with more than 200 products sold in over 100 countries, and approximately 60 per cent of revenues expected to be generated outside the U.S. post-acquisition Pipeline of approximately 60 new launches expected to drive mid-teen organic revenue growth in markets outside the U.S. driven primarily by volume Less than 10 per cent of revenue from US Government reimbursement expected in 2016 Concordia to issuance guidance on Monday October 26, 2015 Concordia to discuss guidance, acquisition and overall business with announcement of third quarter results; November date and forum to be announced OAKVILLE, ON, Oct. 21, 2015 /CNW/ - Concordia Healthcare Corp. ("Concordia" or the "Company") (NASDAQ: CXRX) (TSX: CXR) announced today that it has completed the acquisition of Amdipharm Mercury Limited ("AMCo") from Cinven1, a leading European private equity firm, and certain other sellers, concurrently with the closing of its debt financing. "This is a tremendous milestone for Concordia. This acquisition has transformed us from a predominantly U.S. business to a leading, international pharmaceutical company," said Mark Thompson, Concordia's founder, Chairman and Chief Executive Officer. "We now have a combined portfolio of more than 200 established products and an extensive geographic platform that spans over 100 countries. This combination creates a powerful global platform for our continued organic growth and significantly diversifies our business, while generating strong free cash flows to pay down our current debt and reinvest in the continued growth of our business." Concordia is competitively positioned with AMCo's attractive, international portfolio that focuses on products with high barriers-to-entry, such as difficult manufacturing processes, technical barriers and complex regulatory hurdles. As a result, approximately 88 per cent of the revenue of AMCo's top 20 products is estimated to have two or fewer competitors in 2015. Furthermore, going forward Concordia's share of U.S. revenue is expected to decrease to approximately 40 per cent of total annual revenue. Management expects high single-digit revenue growth of the combined business over the next three years, driven primarily by organic volume growth. This growth will be driven by AMCo's pipeline of approximately 60 new product launches, the continued promotion of Donnatal, and growth from Photofrin. All of Concordia's products are distributed through the traditional distributor model. Concordia utilizes Cardinal Health as its main third party logistics provider and does not use specialty pharmacies to sell its products. Furthermore, the U.S. government accounts for a small portion of Concordia's business, with less than 10 per cent of revenue expected to come from government reimbursed products in 2016.
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