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Bullboard - Stock Discussion Forum Concordia Healthcare Corp. T.CXR.R

TSX:CXR.R - Post Discussion

Concordia Healthcare Corp. > No mention of any fines by NHS
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Post by Buriedincxr1 on Sep 16, 2016 6:28am

No mention of any fines by NHS

Many thought that there would be fines imposed because of these price increases, bill 72 does not mention any, it only stipulates that price controls will be negotiated to limit unfair price increases.  The impact on amco's bottom line will not be seen for at least six quarters.  The market will assume the worst like usual but as long as the cash flow stays relatively stable and Concordia can maintain paying their debt obligations, there will be no issue there.  The real impact of this bill is on future earning growth as the loophole that allowed new formulations big price increases is essentially closed.
Comment by Craigbad on Sep 16, 2016 6:49am
You might want to read a little closer. Although you are correct that the bill can't impose fines, it is stated in one of the articles that Jeremy Hunt has passed on evidence uncovered by The Times to the CMA who can impose large fines if a company has abused a dominant market position. If they were counting on the Uk for growth, the loophole gets closed and pricing gets handcuffed, my guess ...more  
Comment by LaticelnExile on Sep 16, 2016 8:38am
This post has been removed in accordance with Community Policy
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