Concordia Healthcare (CXRX) Misses Q2 EPS by 4c; CFO de Saldanha to Resign; Dividend Suspended

Concordia Healthcare (NASDAQ: CXRX) reported Q2 EPS of $1.38, $0.04 worse than the analyst estimate of $1.42. Revenue for the quarter came in at $231.7 million versus the consensus estimate of $229.76 million.

Management Changes and Suspension of Dividend

The Company announced today that Adrian de Saldanha, Concordia's Chief Financial Officer, will be leaving the organization to pursue other opportunities. Mr. de Saldanha will be replaced by Concordia's current Executive Vice President, Edward Borkowski. Mr. de Saldanha will remain with the Company during a transition period. The board of directors of the Company (the "Board") wishes to thank Mr. de Saldanha for his contributions to Concordia's growth.

As a result of his appointment as Chief Financial Officer, Mr. Borkowski will step down from his position on the Board.

Before joining Concordia, Mr. Borkowski was the CFO of Amerigen Pharmaceuticals, a privately held, generic pharmaceutical company focused on oral controlled release products. Previously, he was the CFO and Executive Vice President of Mylan N.V. During Mr. Borkowski's seven-year tenure at Mylan, from 2002 to 2009, he helped lead the company from a US$900 million revenue U.S.-based firm, to an international leader in generic and branded pharmaceuticals through a number of strategic acquisitions and internally focused development of new products.

Subsequent to quarter end, on August 11, 2016, Concordia's Board unanimously agreed to suspend the $0.075 dividend per common share, payable quarterly. The Company believes the dividend payments can be better deployed towards long-term value-creating initiatives or debt repayment.

GUIDANCE:

Concordia Healthcare sees FY2016 revenue of $859-888 million, versus prior guidance of $1020-1060 million and the consensus of $937.0 million.

For earnings history and earnings-related data on Concordia Healthcare (CXRX) click here.

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