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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by MirrorWorldManon Sep 20, 2016 8:52am
255 Views
Post# 25255035

The business model is not just increasing generic prices

The business model is not just increasing generic pricesIt's supplying generics to a market that demands them. Regardless of the price of those generics. The silver lining in the business model is that every public and private 3rd party payer is going to need cheap generics to counteract the charges of increased medical services and new biological and biosimiliars. The population is aging, chronic diseases are increasing, budgets for drugs decreasing. Concordia has stated they will no longer increase prices of their line generics and the new products will be the source of new revenue growth moving forward. Regardless how they are priced or what competition exists. There is room for all. Contracts will be bid and the winner will get preferred supplier status. If no other generic exists, Concordia will get all the scripts, regardless of the price. The generic market will always exist, there is huge growth in that market and it does not  matter what the prices of the new or old drugs will be.  The demand will be there.   The demand will be strong enough to propel top line sales of all generics far in the future. Bought more at 6.75 and with orders in for every .25 drop. Shorts can say what they like, but by definition they are not long term thinkers. glta
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