A review of why the stock price is going to zeroLast time I checked in here June, The Times investigative journalist had published a piece on the "brothers" exploiting a loophole in the NHS to inflate prices of drugs and become rich.
At the peak of the price jacking, AMCO was sold to Concordia last year for $2B in assets and $1B in goodwill which will be written off in the coming quarters.
Link to UK article
Subsequent to this summer "red flag", we had several major significant events in August with the second quarter results that sealed the fate public equity shareholders:
Concordia did a massive surprise (to most) impairment charge in Q2 after just giving higher guidance weeks prior.
Link for Second Quarter 2016
Cause of the surprise lower guidance going forward?:
- "Reduction in the GBP/USD foreign exchange rate" Brexit, which management claimed would have no impact but which has. The impact is real and not over.
- "Introduction of generic competition for Nilandron® in July 2016" (which was a key drug in the Covis acquisition but which, only includes North American distribution rights
Link for Nilandron acquisition Covis 2013 right) For all of those who think that AMCO has the power to distribute a drug like Nilandron worldwide, check your facts!
- "Competitive marketplace pressures with respect to two key products: Donnatal® and Plaquenil® "
Donnatal was acquired in 2014 from Revive
Link to PR Look at price history and Donnatal was jacked up by Revive and subsequently Concordia to a point where the price increase has caused private insurers in the US to drop covered. Patients have to pay for it themselves and they can't afford it so the "marketplace pressures" are really "marketplace reaction to overcharging". The drug, not FDA or Health Canada approved is on "its way out" of existence and price jacking is a good reason why.
A number of medical professionals have readjusted to the excessive price increases of Donnatal by removing it from use.
Link to an example
The excessive price hikes of Donnatal which made up 40% of Concordia's sale until the acquisition of AMCO are well known
Link to "dramatic price hikes"
Today, the $900 price tag per prescription on Donnatal is three times more than the already jacked up price of Donnatal from 2014. Even in 2014 patients were already complaining about the 50X price increase from historical lows on this legacy drug! Revive setup a crafty "co-pay" which was continued by Concordia but which has serious issues.
Link to real patient discussions on Donnatal
Of course, the marketplace and health & market regulators have started to put pressure on Concordia and that is just the beginning.
Better replacements are being used for IBS because Concordia overpriced it to fool growth investors who only look at summary numbers without underlying business model. That business model is completely broken with very little real assets to support any revival in its current state. There is no way Concordia can contiue to hike the price or drugs or even leave them in their current state with the public and governments taking clear aim at these outrageous price gougers.
Plaquenil will continue to see horrible sales because the price of the drug has gone from below $20 per prescription to almost $100
Link to Paquenil historical price and rising!
And now? Concordiia is strapped with a massive $3B debt and no prospect of milking excessive price gouging since governments in the UK and US are on the offensive to curb the outrageous practice of jacking up drug prices. Especially for companies like Concordia who simply acquire drugs with debt and jack them up to profiteer from the medical establishment with little or no R&D effort.
It's astonishing that investors spend so much time on a web site like this when there is Google available for your use to do your own research without the biases of those short and long.
This web site is 100% stock manipulation and if you don't understand this, you will. There is little or no intelligence discussions here. The vast majority of posters here play games and try to out do each other on the art of psychological warfare.
Focus on the facts, that is your lifeline to safety.