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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by GenericAdvocateon Oct 22, 2016 10:15am
160 Views
Post# 25373990

Wall Street Journal and From Author's Twitter

Wall Street Journal and From Author's Twitter


Success Is Relative At Concordia International

At publicly traded companies, “success” takes many forms.

Or so one might gather from Concordia International’s announcement Friday that CEO and Chairman Mark Thompson will step down once a successor is named. A search is now underway for his replacement.

Lead independent director Jordan Kupinsky said in a statement that the company “looks forward to building on our past successes,” citing a portfolio of over 200 products and “opportunities for organic growth” among them.

That reference to past success might leave shareholders confused: Shares are down more than 88% this year as the embattled drug manufacturer grapples with scrutiny from payers over its high drug prices and a significant debt burden.

Concordia announced it was sharply lowering its profit forecast and suspending its dividend. Finance chief Adrian de Saldanha left the company to pursue other opportunities. The company has over $3 billion in debt while booking less than $800 million in sales over the past four quarters while its unsecured bonds trade well below par, according to FactSet.

As if that weren’t enough, the end of Mr. Thompson’s tenure was marked by controversy. He sued the short seller Marc Cohodes for libel this summer after the investor criticized the CEO’s tenure at another drug company. Shortly after that lawsuit was filed, Mr. Thompson was forced to sell more than half a million shares following a margin call.

  1. There's no crying in baseball but the stock market is another story


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