RE:RE:RE:Everyone knows Managment is trying to get something done..KnowledgeSeekr8 wrote: Why are so many people talking about debt obligations in 2021. You realize that is 5 years away and any number of a 1000 things can happen between now and then including renegotiating their debt terms and getting it refinanced. The company has 4 years to get their act in order and show the banks that they have strong cash flows and can handle whatever debt is left by then and refinance it?? What is the problem?
I agree with KnowledgeSeeker....Heck, if I'm not mistaken, VRX has approximately $30 Billion dollars in debt and are in much more imminent danger of defaulting on their loan payments / tripping debt covenants. Then new CEO Joe Papa simply announces he will sell off some as-yet-to-be-determined assets and try to re-negotiate some debt covenants, and presto, investors hop on the bandwagon again. In addition to their mountain of debt, Valeant has some very serious potential legal issues, including a criminal investigation by the US Attorney's Office of Manhattan re. Philador, the now defunct mail order pharmacy operation........
RE. CXR, the value of the company is in the portfolio of drugs they own and can sell / market in countries around the world. In addition to their US operations, CXR has a large pharmaceutical research lab and production facility in India and a great distribution system in Great Britain, a country that has an excellent public heathcare system for its citizens (the "National Health Service" . From the www.healthydebate.ca website: "As part of their health care, all citizens have their prescription drugs paid for. In England, most people pay a co-payment of $14.50 per prescription, although there are exceptions for vulnerable populations, including children, the elderly and those with certain conditions, such as cancer.
Prepayment certificates can help lower costs for those in England, offering a flat rate for co-payments for three months ($53) or a year ($188).
Wales,
Scotland and Northern Ireland have gone further by eliminating co-payments on drugs, which increases the chances patients will
take required medications. And while some people in the U.K. have private insurance, it’s used for faster access to non-urgent procedures or a broader choice of specialists, not for drugs.“The British National Health Service has one of the best systems,” says Steve Morgan, a professor at UBC who specializes in pharmacare."........
I believe CXR has valuable properties, good cash flow, and a solid footing globally to sell their products. To think that private equity firms and/or other pharmaceutical companies with money to invest in expanding their operations yet are having trouble finding reasonably-priced assets to purchase in in this bull market will consider CXR to be next to worthless is quite a stretch in my view......I think the likely outcome is a takeover by either a private equity firm like Apollo or another pharmaceutical company that can find synergies with CXR's porfolio of medications and research/production facilities......