Concordia Healthcare Corp. T.CXR.R

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Concordia Healthcare Corp. > Wouldn't financing drive the price lower? +dilution & +debt?

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Comment by CNInvestingon Aug 21, 2016 10:51am

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Post# 25162078

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Wouldn't financing drive the price lower? +dilution & +debt?

Yeah and they were obligated to disclose it...otherwise business would be firing on all cylinders right now of course...

LaticeInExile wrote:

Juice004 wrote: 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.

Hmmm.. not sure that Covis looked really good up until now. Maybe it is only obvious now because company finally said there is pressure on Plaquenil and Nilandron - both top contributors for Covis. But based on Symphony data, other key Covis drugs - Dyrenium and Zonegram have not recovered from Q1 decline. Management assumes for H2 Donnatal (I know not part of Covis) ot part of covis but...) will be flat and no one on that conference call believed that. So projections are noow reduced & portfolio is clearly declining ... so who in their right mind would buy it?