Proposed U.K. legislation over barring drug price increases
Concordia International Corp stock crashes on proposed U.K. legislation over barring drug price increases
Shares in Concordia International Corp. crashed Friday after the United Kingdom proposed new legislation to prevent drug firms from enacting exorbitant price increases, something a Concordia subsidiary was caught doing.
Concordia’s stock closed the day at $7.12, a decline of 18.63 per cent, or $1.63. It was another setback for the Oakville, Ont.-based company, which has lost 88 per cent of its value this year alone — to the benefit of short sellers, who have swarmed the pharmaceutical company.
A spokesperson for S&P Dow Jones Indices confirmed Friday that Concordia has also been removed from the S&P/TSX Composite Index following its steep decline this year. That decision had been announced prior to Friday’s sell-off.