Concordia Healthcare to acquire IBS treatment Donnatal
>Concordia Healthcare (TSX:CXR) today announced that it would acquire Donnatal® for US$200 million in cash and shares that have a current market value of (U.S.) $65.3 million.
Privately held specialty pharmaceutical company Revive Pharmaceuticals (not to be confused with Revive Therapeutics Ltd. (TSXV: RVV), a clinical-stage company developing novel therapies for gout, sleep apnea and rare diseases) will continue to operate without the treatment.
Concordia CEO Mark Thompson explained the reasoning behind the pickup.
“The acquisition of Donnatal® represents an important advancement in the execution of Concordia’s legacy product strategy, providing substantial and sustainable revenue going forward,” he said. “In addition, we believe that Donnatal will have a significant and positive impact on Concordia’s net earnings and EBITDA.”
According to the National Institutes of Health, some 30% of Americans suffer from IBS at some time in their lives. The condition is second only to the common cold as a cause of absenteeism from work. IBS is one of the top 10 reasons for physician visits and the second most frequently encountered diagnosis in clinical practice, accounting for more physician visits than any symptoms other than those for respiratory tract infections.
At press time, shares of Concordia Healthcare were up 5.4% to $16.69.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Ahead of the company's first quarter results, Beacon analyst Russell Stanley thinks Ascend Wellness (Ascend Wellness Stock Quote, Chart, News,… [Read More]
Following the company's fourth quarter results, Paradigm Capital analyst Daniel Rosenberg has cut his price target on Snipp Interactive (Snipp… [Read More]
Following the company's first quarter results, Roth MKM analyst Chip Moore remains neutral on Generac Holdings (Generac Holdings Stock Quote,… [Read More]