RE:Valeant to sell assets to reduce debtjunior22 wrote: While Valeant is selling assets to reduce debt, Concordia has entered a co-promotion agreement to expand sales of Donnatal. Whats wrong with this picture and which company and shareholders will benefit the most in the longrun. Does anyone have an idea what Concordias U.S. assets would be worth?
Off-patent or edge of patent life for US assets and UK assets... Donnatal is not fda approved and has regulatory risk of being yanked... The CIBC analyst noted in his equity update last week RedHill appears to be a product development company with little current front-line sales and marketing presence in the GI market and "The co-promotion agreement is not likely to drive near-term Donnatal sales performance or increase market penetratiom.: Donntal contributed ~12% of CXRXs Q3-2016 sales and Declined ~30% in the first 9 months of 2016; expect write-offs at fiscal year end on assets (consistent with latest BNN guest comments when questioned about Concordia). Value of total US and UK asset portfolio I estimate as 4x gross revs which would be in the neighborhood between $2.1 and $2.3 billion. With debt > $4billion it is easy to see why this company is cooked and any PE that would be interested in any assets would wait to pick at them in bankruptcy.