RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:GBP / USD Forecasts Slashed by Credit SuisseOut of curosity, does the scripts report have AMCO drugs as well?
Also, perhaps you can clear something up for me, has their claim about saving NHS money been vetted? They claim that they save NHS money by reformulating drugs to updated dosages. For example, a medicine that comes in 100ml that is perscribed to patients to take say 3 times a day, the Company makes a 300ml bottle where the patient takes it once a day but instead of charging NSH 3x the price, the company charges 2x the price. So why do this? NHS directs more traffic towards these companies as it saves it money.
From outside perspective, this would seem like Company is raising prices on declinng volumes. However, the full picture reveals that the NHS is actually saving money on higher cost drugs.
Thoughts on this arguement?
Lattice wrote: visionary, Nope, I was reponding to your post earlier that said that valean't didn't have any accounting irregularities At the centre of Concordia's story is that they are more leveraged than VRX. Here are three points I am detailing, and will forward you more po to consider specific to this dumpster fire.
1) Concodia is a heavily debt financed company that attempts to buy unloved, brand-name drugs that have fallen off patent or are close to the edge of the patent cliff. Scripts shoe they are in a steady state of decline. Look at the scripts report issued by RBC just yesterday, all scripts are showing a downward trend. This is odd for drugs that Concordia maintains are "best in class." Also strange are the receivables, and the four reserves (called "provisions" by Concordia) that Concordia uses. Concordia believes that by raising prices it can turn the decline into a constant stream of revenue.
2) The balance sheet isn't pretty, if not horrific. The total assets in goodwill and intangible is outrageous. They have poor intellectual property protection as well.
3) Concordia can report higher EBITDA by expressing items such as amortization, dutifully added back into "adjusted EPS" reported by sell sides. EBITDA can only be propped up with new acquisitions - and since the capital markets are closed to Concordia the balance sheet can expand only so much. The stock price fell severely since the AMCo deal because the equity offering came up short and bankers tried to upside the unsecured bonds but were already struggling to sell the debt. When Thompson came on BNN in October and said that he had no reason why short sellers would target his company and that they were being painted as a Valeant price gauger was laughable given what we know today of some of their price increases. I argue that this could be considered fraudulent if an investor bought the stock based on comments he made on public television.
4.... 5..... 6..... 7 ..... Cya later....