RE:RE:RE:RE:RE:RE:RE:RE:RE:Wouldn't financing drive the price lower? +dilution & +debt?Up until now the Covis Portfolio looked really good. They generated approximately 100M in revenue in the first 6 months of the year with gross margins around 86%. Not bad for a 1.2B acquisition.
However, based on their reduced guidance for the 2 drugs that are seeing increased competition 100M seems to be the future annual revenue expectation now which would put the acquisition now at about 12X revenue. So yes it's clear now that they overpaid for these assets. They still owe about 706M in 7.5% term loans for Covis. I wonder if the strategic review would result in them selling off the North America portfolio altogether. Mark did mention on the call that that the strategic review would be good for the company especially the international business segment.