Concordia Healthcare Corp. T.CXR.R

Some issues supporting short thesis

[Roller007]

First,  it's the SEC cracking down on nonGAAP accounting practices as it's misleading investors in their opinion.  You can google and find out many articles relating to Vrx  and other pharma companies that follow these nonGAAP practices from teva to Johnson and Johnson.  The Sec is trying to provide  investors with a clearer picture of the real earnings in pharma companies. 

Another minor issue came today with the introduction of nilutamide which is a generic form of one of Cxr main drugs nilandron, from the covis aquasition,  used for blocking androgens post prostate glands removal.  Nilandron represent close to 2.7% of Cxr revenue and it's unknown how this will impact it.  Personally, the fact that another company went to the expense of FDA approval and licensing fees shows a big enough market for two players and it might even give Cxr an opportunity to raise the price to compensate for Lost scripts. 

Brexit impact if any will be reflected in the guidance and should not effect Q2 earnings.

[MirrorWorldMan]

Concordia's acid ratio needs to improve and that's not news. Neither is the standard operating procedure of shorting almost every biotech and pharma. They are easy manipulated company targets for lots of reasons, including and not limited to drug uncertainties, cash shortages, jittery investors and operating income delays. Hence offerings, panic sells, as well as loans/warrants feed well