Concordia Healthcare Corp. T.CXR.R

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:CXR better off post Brexit?

[BuyingNow]

CEO said on BNN they don't price gouge like Valeant.  Name the drugs and the $ amount or shut the f--- up . 

LatticeInExiIe wrote:

GoldBug024 wrote: Thanks LatticeInExile, very good info. Do you mind to publish dollar increase of price for each drug, Percentages only show half the story.

LatticeInExiIe wrote:

digitel wrote: "This went over really really well."

Can you show us one drug where the price was rolled back because of that article? 

OK.  Now you got me started. I have been doing a lot of research on pricing in the UK. Some of you have received my data who have asked for it.  

Concordia participated in a fireside chat at the RBC healthcare conference in New York in Febraury, where Executive VIce President Edward Borkowski and VP Business Development Daniel Peisert participated in the chat.  They were very happy to diiscuss with Wall Street how the AMCo game in the UK system works.  This is also documented in the "2016 RBC Capital Market's Heathcare Conference Preview" for those who are going to say I am making this stuff up.

AMCo is known for its product reformulation, which allows a branded-drug to launch at a lower price than generic drugs will sell alt, and the company then works to have its pruduct added to national formularies.  Then AMCo strips its brand-name from the drug, which allows it to compete in the generic market so that they can raise prices on the drugs as they see fit.  AMCo also prices its drugs at a substantial premium to the same drugs made by other manufacturers but delivered in a different form.  The NHS provides data on the cost of each drug it covers.  The data has been used to approximate the change in price for each of these drugs.  And I have this price data for Nitrofurantoin (7% of AMCo revenue), Fusidic Acid (8% of AMCo Revenue),  Liothronine Sodium (7% of AMCo revenue), Levothyroxine Solution (8% of AMCo Revenue), and Carbimazole (4% of AMCo revenue) - These are  products that contribute the greatest % of Sales and they have raised prises on these drugs, one as high as 1290% since 2013 and 284% in the last year alone.

To answer your question, there may very well be drugs in the AMCo portfolio that Concordia has lowered prices on, but I have not come across any as they are drugs that likely contribute a smaller % to their sales.  They have not lowered prices on AMCo's top 10 molecules by 2015E revenue, and price growth has played a large role in its business model.
 

GoldBug024,   To get the price increases that you have asked, I would prefer if you seek out that information on your own from the NHS tariff books because I do not believe that any way I would present the data would be satisfactory to you.   It is not as simple as me saying, for example, that nitrofuratoin went from £ to £ because AMCo has different dosages and formulations in various oral, injectible and topical forms.  For example, AMCo's Nitrofurantoin is actually five different drugs:  Nitrofurantoin tabs (50 mg); Nitrofurantoin tabs (100 mg), Nitrofurantoin caps (100 mg); Nitrofurantoin caps (50 mg) and Nitrofurantoin Caps (25mg oral suspension).  What has been found is that sometimes one formulation is marked up a lot more than another.  For example, in the case or Levothyroxine the oral solution is jacked up at a staggering premium compared to the tablets.  (Note that AMCo is the only manufactuer of the oral solution, while Activis and Wockhardt also manufacture the tablets.)  The data needs to be continuously updated (an onerous task) so I would prefer if you compile the £ increases using the NHS Tariff Books on your own, and that way you know you are working with values you are comfortable with.  As a general comment, I will go out on a limb and say that Valeant style tactics are alive and well in the UK. I have found one drug that is 1954% premium over comp (and its not Fusidic Acid).   

I trust that you will find this information satisfactory, and good luck.