Topic: How To Invest

Hi: Would you give me your opinion on Concordia Health Care? Thank you.

Article Excerpt

Concordia Health Care, $46.76, symbol CXR on Toronto (Shares outstanding: 28.9 million; Market cap: $1.3 billion; www.concordiarx.com), is an Oakville, Ontario-based specialty pharmaceutical company that acquires and sells established drugs, mainly in the U.S. The company aims to acquire the rights to relatively small, mature products as opposed to the newer treatments that larger drug companies target. Concordia recently announced that it would acquire the North American rights to the epilepsy drug Zonegran from Eisai Inc. for $190 million. The purchase is expected to close shortly. The company’s growth prospects are now significantly tied to this drug, which was launched in the U.S. in 2000 as a second-generation epilepsy treatment. Eisai has been selling Zonegran, a generic version of which was released in 2006, in the U.S. for the last 10 years. Zonegran’s investment appeal stems from its steady demand and limited sales and marketing requirements. The company’s other main drug is Donnatal, a treatment for irritable bowel syndrome and acute enterocolitis that it…