Bonds of the junk-rated company lost nearly $300 million since posting disastrous third quarter earnings results, where management refused to answer questions on drug revenue and suspended all financial forecasts. Investors who purchased the recent $350m notes just last month have already lost between 13 and 14 percent. The drugmaker’s biggest note now yields over 38 percent, which is over and above what investors demand to hold Venezuela’s benchmark debt.
Newly appointed Chairman Jordan Kupinsky blew out of over 95% of his common stock just one day after third quarter earnings and another 5% as recently as November 11th. This was preceeeded by the previous CEO and founder share sale after a Margin call of over 1.3m shares over the months of August and September at an average cost around $13C
$CXRX shares closed today at US$2.46
The Bondholders have announced that they have formed an ad hoc committee and engaged Akin Gump Strauss Hauser & Field LLP as Legal Counsel. A Class Action suit by shareholders which alleges securities violations against the company and its previous CFO and CEO is set for hearing on December 19th, 2016, the same day that an earn out payment is due to the prior owners of AMCo.
A vocal short seller with over 7,000 twitter followers and who is being sued by the ex-CEO for remarking on BNN that the company is up to "nonsense" tweeted this evening at Charley Grant of the Wall Street Journal:
According to Martin Shkreli, the company is "another victim of leverage"