Concordia Healthcare Corp. T.CXR.R

Why did Concordia make payment to Cinven????

[happyretirement]

If as TD states that AMCo underachieved during the earn-out period....

"The company's net debt to estimated earnings before interest, taxes, depreciation

and amortization for 2016 is about 6.4 times, and it faces other challenges such as

potential drug price reforms in the U.K. Concordia's $3.5-billion (U.S.) acquisition of

Amdipharm Mercury in 2015 had been expected to become a primary driver of

growth, but the business underwhelmed for the nine months ended September, 2016".

"An earn-out payment of up to US$220 million may be payable to the sellers of AMCo

in 2016 should the AMCo group of companies achieve certain levels of gross profit

over a period of 12 months from October 1, 2015. This payment will not be made

should the AMCo group not achieve these targets".

JMO

[rad10]

Private equity ate Mark Thompson for breakfast.  He didnt realise when he did the AMCo deal that the improved balance sheet of the two companies merged through Cinven out of bancruptcy was purely due to gouging price hikes on second tier products and channel stuffing.  The improved AMCo balance sheet was illusory and transient - the UK government has gotten wind of it

[DeathPool]

rad, How do you think the market will react if the exCEO is charged for his "offshore margin calls"  I think it will be the final toll  

[rad10]

Tough call DP - I am not a securities lawyer.  Transparency and decency can certainly be called into question but were laws broken?  I dont know the answer to that one. Reading some of the transcripts of the civil suit he brought to Cohodes - he clearly feels there was no wrong doing and that this is the "Canadian way".....................

[happyretirement]

He didnt realise when he did the AMCo deal that the improved balance sheet of the two companies merged through Cinven out of bancruptcy was purely due to gouging price hikes on second tier products and channel stuffing. Bankruptcy???  Are you sure?

[rad10]

Close enough........... https://www.thepharmaletter.com/article/cinven-snaps-up-amdipharm-for-pound-367-million https://www.thepharmaletter.com/article/cinven-to-acquire-mercury-pharma-for-730-million enjoy!

[happyretirement]

Cinven's investment in AMCo is a consequence of our Healthcare sector team's identification of an opportunity to consolidate the fragmented 'off-patent' pharmaceuticals market - an attractive niche that benefits from high barriers to entry and positive demographic drivers. The Healthcare team developed a relationship with two of the most attractive and complementary

[rad10]

The final payment was made to the very smart folks at Cinven who quintupled their money - the problem that was only really discovered several months after the deal was struck is now a huge issue going forward. What will be the erosion of EBIDTA and Why is no guidance being issued............ I have no issue with concordia - I have a major issue with corporate sleaze....

[happyretirement]

Jan 1.440257 – 31 days Feb 1.429990 – 29 days Mar 1.426061 – 31 days Apr 1.430589 – 30 days May 1.451924 – 31 days Jun 1.418438 – 30 days Jul 1.314450 – 31 days Aug 1.308817 – 31 days Sep 1.314193 – 30 days Oct 1.235094 – 31 days Nov 1.245045 – 30 days Dec 1.247756 – 31 days Jan 1.234480 – 31 days Feb 1.251520 – 11 days You think they could give

[Shortingtozero2]

Well happy, there are thousands of other companies with international currency exposure and they manage to give guidance!   Can you imagine if every company used this excuse to not give guidance ... that's so hilarious.

[rad10]

astrazeneca and GSK are all giving guidance - big British pharma companies with massive global reach........................... Currency fluctuations are not unique to CXR. It's hardly an excuse for curtailing guidance HR........ SMH