Concordia International (CXRX) Says It's Monitoring Health Service Medical Supplies (Costs) Bill

September 16, 2016 10:03 AM EDT
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Concordia International Corp. (NASDAQ: CXRX today commented on the UK's Health Service Medical Supplies (Costs) Bill, which was introduced into the House of Commons on September 15, 2016. 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.

"Concordia is supportive of any action that provides patients with greater access to safe and efficacious medicines," said Mark Thompson, Chairman and Chief Executive Officer of Concordia. "We anticipate that growth from our international segment, which includes the UK market, going forward will primarily come from new product launches. We are monitoring the bill and evaluating its timing and its impact, if any, on our business."

Concordia reaffirmed its full year 2016 guidance today, and confirmed that it believes it has access to sufficient financial resources to manage its liabilities.

Concordia's full year 2016 financial guidance is as follows:

  • Revenues of US$859 million to US$888 million
  • 1Adjusted EBITDA of US$510 million to US$540 million
  • Approximately 66 percent of revenues to be generated outside the U.S.
  • Target 2016 year-end Net Debt/EBITDA of 6.4x or below
  • Reduction in the GBP/USD foreign exchange rate to 1.31 assumed for the remainder of 2016 from July – December

As previously announced, 2016 guidance assumes that the gross profit targets for the £144 million earn-out payment to the sellers of Concordia's International segment will be fully met.

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