Post by
GenericAdvocate on Oct 16, 2016 5:02pm
Donnatal Permanent Impairment
Guidance called for flat Donnatal
I predict a large impairment for Donnatal in Q3
Company will have to reduce guidance and the market will react negatively imo
Comment by
cg16 on Oct 16, 2016 5:43pm
The IBS market is also growing at a healthy rate (low 6% high 9% yoy) which should not be disregarded. We will know for sure how its performing at Q3 results. Should be very interesting to watch.
Comment by
CounterAttack on Oct 16, 2016 5:13pm
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Comment by
ryehigh2014 on Oct 16, 2016 5:21pm
Donnatal value to intangibles is ~$400MM - look at historical annual statements. For a product which generates 70MM (revised impairment after -14% YTD growth) Revenue annually I think this is fair. The asset is impaired over 15Y - 20Y I do not expect that CXRX will be recording an impairment charge unless a material change occurs (FDA decides to pull it)
Comment by
Marky1 on Oct 16, 2016 5:32pm
But they already took an impairment charge in Q2.....for Dannatal
Comment by
puma1 on Oct 17, 2016 11:18am
I am pretty sure they only paid US$250 million or so for this product in their early days.