Canadian pharmaceutical company Concordia Healthcare Corp. (NASDAQ: CXRX; TSX: CXR) said it is considering strategic alternatives. The company focuses on Attention-Deficit Hyperactivity Disorder, cancer and asthma.
Shares jumped up 25% to $30.50 on the last trading session, giving the company a market value of $1.55 billion, but were halted for the dissemination of the news at 1:53pm on Thursday.
New York-based private equity firm Blackstone Group (NYSE: BX) is said to be considering a buyout of the company, Bloomberg said.
Shares were down 25% in the year so far and declined 57.43% since September 16, 2015.
Concordia is a diverse, international pharmaceutical company focused on legacy pharmaceutical products and orphan drugs. The company has an international footprint with sales in more than 100 countries, and has a diversified portfolio of more than 200 established off-patent molecules.
Concordia also markets orphan drugs through its Orphan Drug Division, currently consisting of Photofrin for the treatment of certain rare forms of cancer, which is currently undergoing testing for potential new indications.
Concordia operates out of facilities in Oakville, Ontario and, through its subsidiaries, operates out of facilities in Bridgetown, Barbados; London, England and Mumbai, India.
Concordia Healthcare Corp currently comprises three companies: Concordia Pharmaceuticals Inc., Pinnacle Biologics Inc., and Complete Medical Homecare Inc.
The company was founded in December 2012 and has since pursued a corporate strategy of growth-through acquisition, much like fellow Canadian company Valeant Pharmaceuticals, having spent nearly $5 billion in M&A deals since 2013.
Concordia uses Cardinal Health as its main distribution chain partner. The company also focuses on acquiring legacy pharmaceutical compounds which are usually off patent.
In September, Condordia paid European private equity firm Cinven $3.5 billion in cash and shares for UK-based global out-of-patent prescription pharmaceuticals firm Amdipharm Mercury – sometimes abbreviated to AMCo.
The AmCo deal positioned the combined company “as a leading, international pharmaceutical company with extensive geographic reach”, said Concordia CEO Mark Thompson.