Pushing up prices for legacy drugs as a business model?
https://www.forbes.com/sites/nathanvardi/2016/05/20/the-other-canadian-drug-company-that-has-pushed-up-drug-prices/#408dd85039f9
"A prescription for Donnatal in the U.S. sold for about $87 in 2010, but by the time Manning sold the drug to Concordia it sold for about $353, according to IMS Health data. After securing Donnatal, Concordia in June 2014 immediately doubled the price to $602, according to IMS Health data. Donnatal now sells for about $782 and it’s Concordia’s best-selling product, representing about 10% of sales. In total, the price of Donnatal has increased by 800% since 2010."
...
"Founded outside Toronto by Mark Thompson three years ago, Concordia has gone on a debt-fueled acquisition binge and been a hot stock that now has a market capitalization of $1.6 billion. Investment firms like PBM Capital and Cinven used it as a deal-making vehicle to exit their drug investments or make them liquid. But in the last year Concordia’s stock has dropped by 54% as investors became wary of specialty pharmaceutical firms that seem leveraged both to drug-price increases and debt."
Read the rest of the article. If the rumour that the acquisition of AMCo isn't complete until final upcoming payouts are complete, I would be betting that Cinven, the "private equity" firm in the UK might be very interesting to do a reverse take over of Concordia.
And PE take overs of wounded companies are not done in a friendly way to public equity shareholders.
Hang tight here, I'm seeing a check-mate coming in this Game of Masters and shareholders are pawns. The kings are fighting this out and the board will be wiped clean of any piece that doesn't fit THIS game of Masters.