Drug company Concordia International shares plunge more than 30 per cent

OAKVILLE, Ont. – Shares of Concordia International Corp. (TSX:CXR) plunged Monday after the company reported a loss in its latest quarter and suspended its financial guidance.

The drug company saw its stock fall $1.57 or nearly 37 per cent to C$2.70 at the close on the Toronto Stock Exchange.

The announcement came after Concordia, which keeps its books in U.S. dollars, reported a loss from continuing operations of US$75.1 million or $1.47 per share in its latest quarter. That compares with a profit of $1.5 million or four cents per share a year ago.

Revenue totalled $185.5 million for the three months ended Sept. 30 compared with $93.0 million in the same quarter last year.

Concordia said it was suspending its financial guidance as the company assesses the business under new leadership.

“Concordia’s management team is committed to expeditiously evaluating all aspects of its business to ensure appropriate actions are taken to rebuild value for all stakeholders,” the company said in a statement.

The company announced earlier this month that former Sagent Pharmaceuticals chief executive Allan Oberman would take over as chief executive, effective Nov. 14.

He succeeds Mark Thompson, who will also step down as chairman of Concordia’s board of directors. The company announced in October that Thompson would be leaving after a replacement was found.

Oberman has more than 16 years experience in the pharmaceutical industry including at Sagent, an Illinois-based specialty drug company.

Thompson’s role as chairman of Concordia’s board will be filled by Jordan Kupinsky, who has been the board’s lead independent director and a member of the board since 2013.