RE:RE:RE:RE:RE:RE:RE:RE:Cohodes Short SummaryThe UK government won't want something that drags in courts for years and cost tax payers more money than they'll actually recover. I'm pretty sure they'll reach a deal where CXR will give the UK government a specific amount of money to settle the matter, and things will go on. The loopholes will probably be closed or at least a few regulations amended to please the public. Everytime I've seen such a problem between a company and a government, there's always a similar compromise reached. Don't forget that these pharmas provide actual jobs, so it's not in the interest of courts to destroy companies.
visionaryfool wrote:
If I recall, the maximum penalty that can be imposed is 10% of the revenues ... althought I might be mistaken. Given the sales mix of Concordia, this would be aroun what, $60 to $70 million?
The fundamental problem is that these medicines are being provided and you can force a Company to roll back prices or impose fines but at the end, if the Company is no longer able to make money (as would be the case if CXR was told to roll back prices say 3 years ago, extremely unlikely and without a precedant, but lets play make believe for a second), and the medicine is no longer available, what will the government do then?