TORONTO – Shares in Concordia Healthcare Corp. (TSX:CXR) soared more than 25 per cent Thursday amid reports of a possible takeover attempt by a New York-based alternative asset manager.
The pharmaceutical company based in Oakville, Ont., has not commented on market chatter that Blackstone Group (NYSE:BX) has been kicking the tires over a possible buyout.
However, Concordia announced after markets closed that it had formed a special committee of independent members to consider “various strategic alternatives potentially available to the company,” though it added there was no assurance any such transaction will occur.
The company also said it does not intend to make any additional comments on the issue at this time.
On the Toronto Stock Exchange, Concordia’s shares closed up $7.79 or 25.24 per cent at $38.65.
Over the past year, Concordia has seen its shares plummet to as low as $25 from $117 amid a rising debt load to pay for acquisitions and general investor concern over pharma stocks in light of problems over alleged price gouging by larger rivals such as Valeant (TSX:VRX) and others.
Concordia is a diverse international pharmaceutical company focused on legacy pharmaceutical products and orphan drugs with sales in more than 100 countries involving more than 200 established off-patent molecules.
Its market capitalization at current stock prices is some $1.9 billion.