Concordia Healthcare Corp. T.CXR.R

RE:RE:RBC STATES RISKS ON THEIR LAST REPORT

[ConfidentDD]

To Latic's point, its already underway. https://www.telegraph.co.uk/news/2016/06/04/watchdog-to-investigate-extortionate-drugs-pricing-claims/ quote=LaticelnExile]HA!  The Biggest Risk in the UK is THIS....   

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and certain consumer law. From 1 April 2014 it took over the functions of the Competition Commission and the competition and certain consumer functions of the Office of Fair Trading.
2. The Chapter II prohibition of the Competition Act 1998 prohibits the abuse of a dominant position by one or more undertakings which may affect trade within the UK or a part of it. Similarly, Article 102 of the Treaty on the Functioning of the European Union prohibits the abuse of a dominant position which may affect trade between EU Member States.
3. The CMA may impose a financial penalty on any business found to have infringed the Chapter II prohibition or Article 102 (or both) of up to 10% of its annual worldwide group turnover. In calculating financial penalties, the CMA takes into account a number of factors including seriousness of the infringement(s), turnover in the relevant market and any mitigating and/or aggravating factors.

Health123 wrote:

Risks

The company faces a number of risks related to integration/ execution of acquisitions, the inability to identify new products, Donnatal exposure as a DESI product, clinical trial failures, unexpected new generic drugs, reliance on third parties for various operational items such as manufacturing, price increase pushback, a significant debt load, and risks associated with managing a larger suite of products. However, the AMCo and Covis deals reduce the overall exposure to Donnatal. Given Concordia's international exposure to the UK and EU, the recent Brexit vote and the subsequent effects on the GBP are a risk to Concordia. The recently tabled NHS bill in the UK could further limit potential future price increases and could also potentially see the NHS impose lower prices for unbranded drugs in the UK. There remains a lack of clarity surrounding the NHS's intentions when it comes to potentially lowering drug prices. We also believe that there is significant potential that the UK's Flynn/Pfizer CMA investigation ruling could be negative and the companies could be fined etc... - we believe this would place an overhang on Concordia. 

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