Update: Concordia Healthcare Slide to Record Low on UK Bill, Exit from S&P/TSX Composite Index
(Updates with record low share price, and exit from S&P/TSX Composite Index at end of day)
Concordia Healthcare ( CXRX ) was last down nearly 18%, off a record low reached earlier after a bill was introduced in the U.K. House of Commons proposing controls on drug prices.
The proposed bill would amend and extend existing provisions of the National Health Service Act 2006 to help manage the cost of health service medicines, it said.
The shares also are set to leave the S&P/TSX Composite Index after Friday's close, which some say is exacerbating the decline.
In response to the UK bill, the company earlier said it is monitoring the UK's Health Service Medical Supplies (Costs) Bill introduced into the House of Commons on September 15. It said it anticipates growth from its international segment, which includes the UK market, going forward will primarily come from new product launches.
It also said it expects FY16 sales between US$859 million to US$888 million, in line with the CapIQ mean for $879.16 million.
Adjusted EBITDA is seen between US$510 million to US$540 million, and about 66% of revenues are expected to be generated outside the U.S.
Concordia said it believes the company has "access to sufficient financial resources to manage its liabilities."
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