RE:RE:management silent still Looks like MT did speak:
Health care
Concordia Healthcare Corp has the biggest exposure to the U.K. out of any Canadian pharma company, at about 40 per cent of its business, thanks to its acquisition last October of Amdipharm Mercury Limited. But, the Oakville, Ont.-based company’s exposure to the falling pound is hedged by the fact that about 20 per cent of its debt is in that currency.
Canaccord Genuity analyst Neil Maruoka estimates that for every five per cent fluctuation in the pound relative to the U.S. dollar, there is more than a one per cent impact on Concordia’s EBITDA. The day after the referendum, Maruoka dropped his target price on the company from US$55 to US$45. The company’s shares have fallen nearly 16 per cent since last Thursday.
The company says that the depreciation of the pound sterling relative to the U.S. dollar does not impact its ability to service debt and earn-out obligations.
“From a supply and demand perspective, we don’t anticipate any interruption going forward in the U.K. and we do not have any manufacturing assets in the U.K.,” said Concordia CEO Mark Thompson.
Merus Labs and Cardiome Pharma Corp also have limited exposure to the U.K. causing the stocks to dip after the vote to leave the EU, but have since recovered.