Canadian pharmaceutical holding company Concordia International Corp (NASDAQ:CXRX) was beaten down by investors after it announced worse-than-expected third quarter results yesterday and suspended its guidance.
Shares fell 36.36% to $2.03 on Monday with 17.26 million changing hands.
Technically, there is no sign of a bottom yet.
Concordia International Corp (NASDAQ:CXRX)’s pessimistic earnings release
Investors ran for the hills after the company declared third quarter EPS of $0.69, which missed by $0.35, and revenue of $185.5 million which missed by $20.5 million, though was up 99.4% year on year.
The company said it generated net operating cash flows from continuing operations of $309.8 million for the nine month period ended September 30, compared to $67.9 million in the comparative period in 2015.
Since October 21, 2015, the company’s International division has launched 24 new products and is confident that it will have 60 new products in launch by end-2018.
Yet the results have been impacted by competition and there was no comfort from the press release:
“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,” said the company. “Additionally, with the recent leadership changes, the Company has determined it will suspend its financial guidance.”
The recent leadership changes referred above comprise the appointment of Allan Oberman as CEO in place of Mark L Thompson and Jordan Kupinsky as Chairman of the Board of Directors, with the new appointments becoming effective November 8, 2016.
Concordia International Corp (NASDAQ:CXRX) versus shorts
Thompson founded Concordia in 2012.
Concordia, and Thompson, have been targeted by short sellers during the stock’s precipitous, 93% decline over the past year.
Thompson sued Marc Cohodes, one such alleged short seller, in July for alleged libel.