Concordia Suspending Guidance After Management Shake-up

(RTTNews) - Canadian drugmaker Concordia International Corp. (CXRX, CXR.TO) said Monday it is suspending its financial outlook for fiscal 2016, citing the impact of generic competition and recent top executive changes at the company. The company's shares are losing more than 33 percent in regular trading.

"Due to recent pressures from generic competition on Plaquenil and Nilandron, as well as increased pressure on Donnatal from competition in the category and what we consider to be an illegal commercial product, we have experienced variability in forecasting the North American business," Concordia said in a statement.

"Additionally, with the recent leadership changes, the Company has determined it will suspend its financial guidance," the company added.

Concordia, which is focused on legacy pharmaceutical products and orphan drugs, also reported its financial results for the third quarter on Monday.

The company's third-quarter net loss from continuing operations was $75.15 million or $1.47 per share, compared to net income from continuing operations of $1.54 million or $0.04 per share in the year-ago period. Adjusted earnings per share were $0.69, compared to $1.37 per share last year.

Revenues for the quarter almost doubled to $185.50 million from $93.01 million in the prior-year quarter, but declined 19.9 percent from the preceding second quarter.

Shares of Concordia have fallen 89 percent over the last year as the company struggles with increased competition, conducted a strategic review and recently announced executive changes.

On November 2, 2016, Concordia said its board of directors appointed Allan Oberman as its new chief executive officer and Jordan Kupinsky as chairman of the board. At that time, the company said the new appointments would be effective November 14, 2016.

However, Concordia said Monday that the new appointments will now be effective November 8, 2016, as founder and CEO Mark Thompson's departure will be effective on that day.

In mid-April, Concordia said it formed a special committee of independent members of its board to consider various strategic alternatives potentially available to the company.

Bloomberg reported at that time that Blackstone Group LP (BX) was considering a takeover of Concordia and was in talks with the company about a potential transaction.