Click here to close now.




















Welcome!

News Feed Item

Concordia Healthcare Corp. Announces Financial and Operational Results for its Second Quarter, Ended June 30, 2014

TORONTO, Aug. 13, 2014 /PRNewswire/ - Concordia Healthcare Corp. ("Concordia" or the "Company") (TSX: CXR) (OTCQX: CHEHF), a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population, today announced its financial and operational results for the three and six months ended June 30, 2014.

All financial references are in U.S. dollars unless otherwise noted.

Financial Results               

(in US$) Three Months Ended June 30,
2014
Six Months Ended June 30,
2014
Revenue $26,053,000 $42,863,000
Gross profit $21,499,000 $34,455,000
Operating income $2,731,000 $7,670,000
Net income (loss) ($827,000) ($2,663,000)
Loss per share basic ($0.03) ($0.12)
Loss per share diluted ($0.03) ($0.12)
EBITDA1 $1,651,000 $5,197,000
Adjusted EBITDA2 $12,441,000 $18,344,000
Cash and cash equivalents $32,708,000 $32,708,000

Second Quarter 2014 Operational Highlights

  • On May 14, 2014, the Company entered into a secured credit facility having a principal amount of up to $195 million, consisting of a $170 million term loan and a $25 million operating line.
  • On May 15, 2014, the Company completed the acquisition of Donnatal®, an adjunctive therapy in the treatment of irritable bowel syndrome and acute enterocolitis, for $200 million in cash and an aggregate of 4,605,833 common shares of Concordia. During 2013, Donnatal generated revenues of $49.1 million and EBITDAof $40.2 million.
  • Concordia's board of directors approved a $0.075 dividend per common share.  A record date of October 15, 2014 is expected to be declared with a distribution of proceeds expected to occur on October 31, 2014.  Declarations and payments will be made in U.S. dollars.  All future quarterly dividends will be subject to quarterly financial review and board approval.
  • Subsequent to quarter end, Thomas Jefferson University Hospital in Philadelphia became the first site authorized to begin screening patients in the Company's randomized Phase 3 clinical trial to treat a rare form of bile duct cancer, cholangiocarcinoma, using photodynamic therapy (PDT) with PHOTOFRIN®.  The Company expects more sites to be operational in the near-term.
  • Subsequent to quarter end, the Company announced that its subsidiary Pinnacle Biologics, Inc. enrolled the first patients in a randomized Phase 2 trial to evaluate PDT with PHOTOFRIN for patients with epithelioid malignant pleural mesothelioma. The study is expected to enroll 102 patients over four years, and is being supported by an $8 million grant from the National Cancer Institute.

Going forward, Concordia plans to grow its businesses by:

  • supplementing its existing portfolio by acquiring or in-licensing additional legacy products;
  • expanding its Specialty Healthcare Distribution Division by distributing additional products;
  • developing PHOTOFRIN® for new indications including cholangiocarcinoma; and
  • acquiring additional orphan drugs.

"Closing the Donnatal transaction this quarter was a significant gain for Concordia; both in the quality of the product we have added to our legacy portfolio and in the revenue-generating capability of the asset," said Mark Thompson, Chief Executive Officer of Concordia. "In addition to the positive impact from Donnatal on our balance sheet, we have seen sequential growth from our Legacy Pharmaceuticals Division and Specialty Healthcare Distribution since going public in December 2013. These divisions provide a stable revenue stream for the continued development of PDT with PHOTOFRIN in orphan indications, and allow us to consider further acquisition opportunities in the future."

Second Quarter 2014 Financial Results

The Company's net revenue was $26,053,000 and $42,863,000 for the three and six months ended June 30, 2014, respectively, while gross profit for the same periods was $21,499,000 and $34,455,000.

Net revenue and gross profit are derived from Concordia's Legacy Pharmaceuticals Division, its Orphan Drugs Division, and its Specialty Healthcare Distribution.

Legacy Pharmaceuticals Division

Net revenues for the Legacy Pharmaceuticals Division were $19,546,000 and $28,855,000 for the three and six months ended June 30, 2014, respectively, related to the sales of Kapvay®, Orapred ODT®, Orapred OS®, Ulesfia® and Donnatal after subtracting deductions from Gross Sales such as chargebacks, returns and allowances, rebates and other deductions that are customary in the industry.

Cost of sales were $4,002,000 and $6,212,000 for the three and six months ended June 30, 2014, and reflect the costs of active pharmaceutical ingredients, excipients, packaging and freight costs and royalties.

Gross Profit was $15,544,000 and $22,643,000 for the three and six months ended June 30, 2014.

Orphan Drugs Division

The operations of Concordia's Orphan Drugs Division commenced on December 20, 2013 with the acquisition of Pinnacle Biologics, Inc. The Orphan Drugs Division is intended to provide growth opportunities through the expansion into new indications for existing products or the acquisition of approved orphan drugs and further expansion within their identified markets and new indications.

Net revenues for the Orphan Drugs Division were $778,000 and $4,348,000 for the three and six months ended June 30, 2014, respectively, primarily related to sales of PDT with PHOTOFRIN. PDT with PHOTOFRIN is Concordia's commercial oncology drug for the treatment of certain forms of cancer.

Cost of sales were ($405,000) and $295,000 for the three and six months ended June 30, 2014, and reflect the cost of manufactured products sold, quality assurance and distribution.

Gross Profit was $1,183,000 and $4,053,000 for the three and six months ended June 30, 2014.

Specialty Healthcare Distribution Division

Net revenues for the Specialty Healthcare Distribution division were $5,729,000 and $9,660,000 for the three and six months ended June 30, 2014, respectively, related primarily to sales and distribution of diabetes testing supplies and orthotics for diabetic patients.

Costs of sales were $957,000 and $1,901,000 for the three and six months ended June 30, 2014, and reflect the cost of products, warehousing and freight.

Gross profit was $4,772,000 and $7,759,000 for the three and six months ended June 30, 2014.

Overall for the Company, operating income was $2,731,000 and $7,670,000 for the three and six months ended June 30, 2014.

Operating expenses were $18,768,000 for the three months ended June 30, 2014, including general and administrative expenses, which were $4,931,000, selling expenses of $2,196,000, acquisition-related costs of $8,314,000, share-based compensation of $1,380,000, and research and development costs of $1,931,000.  Operating expenses were $26,785,000 for the six months ended June 30, 2014.

Net cash used in operating activities was $6,353,000 and $9,395,000 for the three and six months ended June 30, 2014, and was primarily related to the payment of liabilities, deposits on inventory purchases and advanced funding of clinical trial costs. Net cash used in operating activities also included $8,488,000 in acquisition related payments during the six months ended June 30, 2014.

As at June 30, 2014 the Company had 28,511,239 common shares issued and outstanding, and 30,768,519 on a fully diluted basis.

Conference Call Notification 

Management will host a conference call to discuss the second quarter 2014 results on Thursday, August 14, 2014 at 8:30 am ET. Following management's presentation, there will be a question-and-answer session. To participate in the conference call, please dial (888) 231-8191 or (647) 427-7450.

A digital conference call replay will be available until midnight on August 28, 2014 (ET) by calling (855) 859-2056 or (416) 849-0833. Please enter the password 79382932 when instructed. A webcast replay will be available for 365 days by accessing a link through the Events section at visit www.concordiarx.com

About Concordia
Concordia is a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population. The Company's pharmaceutical business consists of ADHD-treatment Kapvay® (clonidine extended release tablets), Head Lice Treatment Ulesfia® (benzyl alcohol) Lotion, Asthma-related medication Orapred ODT® (prednisolone sodium phosphate orally disintegrating tablets) and Irritable Bowel Syndrome treatment Donnatal® (belladonna alkaloids, phenobarbital). Concordia's Specialty Healthcare Distribution (SHD) division, Complete Medical Homecare, distributes medical supplies targeting diabetes and related conditions. Concordia's orphan drug division, Pinnacle, markets PHOTOFRIN® in the United States.

Concordia operates out of facilities in Oakville, Ontario; Lenexa, Kansas (near Kansas City, Missouri); Chicago, Illinois; Bridgetown, Barbados; and Charlottesville, Virginia.

1As used herein, EBITDA is defined as net income adjusted for net interest expense, income tax expense, depreciation and amortization. Management uses EBITDA to assess the Company's operating performance. A reconciliation of net income to EBITDA is provided below.

2As used herein, adjusted EBITDA is defined as EBITDA adjusted for one-time charges associated with acquisitions, one-time charges associated with the Company's listing on the TSX, non-cash items such as unrealized gains / losses on derivative instruments, change in fair value of contingent consideration, share-based compensation and realized / unrealized gains/losses related to foreign exchange revaluation. Management uses adjusted EBITDA as a key metric in assessing business performance when comparing actual results to budgets and forecasts. Management believes adjusted EBITDA is an important measure of operating performance and cash flow, and provides useful information to investors because it highlights trends in the underlying business that may not otherwise be apparent when relying solely on IFRS measures.

Non-IFRS Measures

This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies.  When used, these measures are defined in such terms as to allow the reconciliation to the closest IFRS measure.  These measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective.  Accordingly, they should not be considered in isolation nor as a substitute for analyses of the Company's financial information reported under IFRS.  Management uses non-IFRS measures such as EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures.  Management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.  Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, and to assess its ability to meet future debt service, capital expenditure, and working capital requirements.

Notice regarding forward-looking statements:

This release includes forward-looking statements regarding Concordia and its business, which may include, but are not limited to, the impact of the acquisition of pharmaceutical products on Concordia's financial performance, the revenue-generating capabilities of Concordia's assets, Concordia's financial strength, the ability of Concordia's products and/or business divisions to generate a stable revenue stream for the development of products and/or acquisition opportunities, the payment of dividends in respect of Concordia's common shares, Concordia's growth, the expansion into new indications for Concordia's existing and/or future products, the acquisition of additional products (including orphan drugs and legacy products), in-licencing additional products, the distribution of additional products, the addition of new sites approved to enroll patients into clinical trials, the ability to obtain necessary approvals, the approval and development of PDT with PHOTOFRIN® as a new treatment for certain forms of cancer, the ability of PDT with PHOTOFRIN® to combat certain forms of cancer, enrollment of patients into clinical trials, the outcomes and success of clinical trials and other factors.  Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "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 release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Concordia, including risks regarding clinical trials and/or patient enrollment into clinical trials, risks relating to the use of Concordia's products to treat certain diseases, the pharmaceutical industry, the failure to obtain regulatory approvals, risks associated with the acquisition of pharmaceutical products, economic factors, market conditions, the equity markets generally, risks associated with growth and competition 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In 2014, the market witnessed a massive migration to the cloud as enterprises finally overcame their fears of the cloud’s viability, security, etc. Over the past 18 months, AWS, Google and Microsoft have waged an ongoing battle through a wave of price cuts and new features. For IT executives, sorting through all the noise to make the best cloud investment decisions has become daunting. Enterprises can and are moving away from a "one size fits all" cloud approach. The new competitive field has ...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
Enterprises can achieve rigorous IT security as well as improved DevOps practices and Cloud economics by taking a new, cloud-native approach to application delivery. Because the attack surface for cloud applications is dramatically different than for highly controlled data centers, a disciplined and multi-layered approach that spans all of your processes, staff, vendors and technologies is required. This may sound expensive and time consuming to achieve as you plan how to move selected applicati...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...