Some issues supporting short thesisFirst, 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.