RE:CMA Investigations And Timeline of UK Drug Price Scandal
Marcel7, thank you for posting the results of your investigation into the matter.....I suspect the main reason CXR's share price seems to be performing even worse than VRX recently has more to do with Brexit than it does with any possible investigation of drug price increases involving AMCo.......I believe approximately 60% of CXR's revenue currently comes from their UK operations, and I think investors may fear that a British vote to leave the EU would cause possible future increases in costs / difficulty for AMCo in their future efforts to expand the sale of their products to other EU countries (I don't believe VRX has nearly as much exposure to the UK or Europe in terms of % of their revenues as CXR does).........Personally, my biggest concern is with CXR's Board - I hope they are not setting the bar too high re. their minimum asking price for CXR on a takeover.....CEO Mark Thompson strikes me as a person who may be overestimating the value of CXR.....Perhaps that is why Blackstone and The Carlyle Group allegedly walked away from the final round of bids for the company.....I think CXR is definitely undervalued at $35 - $40, but if the asking price is unreasonably high, buyers will obviously walk.........I hope Mr. Thompson and fellow Board members aren't being influenced by the fact that they earn salaries / other compensation as Board / Management members so long as CXR remains independent with their own "independent" internal compensation committee deciding on salary and benefit matters .....Private Equity companies will often retain CEOs / other key personnel to continue to run the operation after absorbing it into their organization, but who knows where that would stand if Apollo (which was apparently the only party that submitted a final round bid) was successful in purchasing CXR.......Again, I reiterate my belief that an offer of $50+ CAN per share would be acceptable as a takeover offer price given the company's current state and the environment in which they would be operating going forward......