OAKVILLE, ON, Oct. 9, 2015 /PRNewswire/ - Concordia Healthcare
Corp. ("Concordia" or the "Company") (NASDAQ: CXRX) (TSX: CXR) is
pleased to provide an update on its acquisition of Amdipharm
Mercury Limited ("AMCo"). As previously announced, the
Company has fully committed debt financing of approximately
US$2.8 billion from certain financial
institutions to fund the balance of the purchase price for AMCo and
to refinance certain Concordia and
AMCo debt. Pro forma for this debt financing, Concordia's total debt will have a maximum
blended interest rate of approximately 7.25 per cent.
On September 30, 2015,
Concordia announced that it
completed its underwritten public offering of 8,000,000 common
shares for aggregate gross proceeds of US$520 million. The proceeds from the debt
financing and equity offering, along with cash on hand, will be
used to complete the acquisition of AMCo, which is scheduled to
close on or about October 21,
2015.
The acquisition of AMCo is expected to significantly diversify
the Company's geographic base and transform its growth platform by
allowing it to drive organic growth across the business. Following
closing of the transaction, the United
States is expected to represent approximately 40 per cent of
Concordia's annual revenue. A
major growth driver of the combined business over the next three
years is expected to be organic, volume-based growth opportunities
driven by AMCo's pipeline of approximately 60 planned new product
launches.
About Concordia
Concordia is a diverse
healthcare company focused on legacy pharmaceutical products and
orphan drugs. Concordia's legacy
pharmaceutical division, Concordia Pharmaceuticals Inc., consists
of a portfolio of branded products and authorized generic
contracts, including branded products such as Nilandron®, for the
treatment of metastatic prostate cancer; Dibenzyline®, for the
treatment of pheochromocytoma; Lanoxin®, for the treatment of
mild-to-moderate heart failure and atrial fibrillation; Plaquenil®,
for the treatment of lupus and rheumatoid arthritis, Donnatal® for
the treatment of irritable bowel syndrome and Zonegran®
(zonisamide) for treatment of partial seizures in adults with
epilepsy. Concordia's orphan drugs
division owns Photofrin®. Photofrin® is marketed by Pinnacle
Biologics, Inc. in the United
States.
Concordia operates out of
facilities in Oakville, Ontario;
Bridgetown, Barbados; Roanoke, Virginia and has a specialty
healthcare distribution (SHD) division that operates out of
Kansas City, Missouri. Pinnacle
Biologics, Inc. is located in Chicago,
Illinois.
Notice regarding forward-looking statements:
This news release includes forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of Canadian securities laws, regarding Concordia and its business, which may include,
but are not limited to the use of proceeds of the equity offering
and debt financing, the completion of the debt financing, the
effect of the acquisition of AMCo on the Company, growth of AMCo
and Concordia, the completion of
the acquisition of AMCo and timing thereof, organic growth and the
sources thereof, the diversification of the Company's geographic
base and Concordia's revenue by
geography. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects",
"scheduled", "intends", "contemplates", "anticipates", "believes",
"proposes" or variations (including negative and grammatical
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Such statements are based on
the current expectations of Concordia's management, and are based on
assumptions and subject to risks and uncertainties. Although
Concordia's management believes
that the assumptions underlying these statements are reasonable,
they may prove to be incorrect. The forward-looking events and
circumstances discussed in this news release may not occur by
certain dates or at all and could differ materially as a result of
known and unknown risk factors and uncertainties affecting
Concordia, including risks
relating to Concordia's
securities, the acquisition of AMCo, increased leverage, the
inability to generate cash flows and/or stable margins, the
pharmaceutical industry and the regulation thereof, economic
factors, the equity and debt markets generally, general economic
and stock market conditions and many other factors beyond the
control of Concordia. Although
Concordia has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results to differ from those anticipated,
estimated or intended. No forward-looking statement can be
guaranteed. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and Concordia undertakes
no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
SOURCE Concordia Healthcare Corp.