BUZZ-Concordia International Corp: Shares hit record low

Fri Sep 16, 2016 3:25pm EDT
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** Canadian drugmaker's shares down as much as 27.7 pct at C$6.33 - lowest in nearly 3 years

** U.S.-listed shares fall as much as 27.4 pct to record low of $4.80

** Canaccord Genuity Corp analysts downgrade stock to "speculative buy" from "buy" and cut PT to $10 from $20

** UK on Thursday proposed a Health Service Medical Supplies (Costs) Bill, which restricts companies from dramatically increasing price of drugs

** "...the implementation of this Bill will likely yield headwinds for Concordia's organic growth, limiting the company's ability to take large price increases and, potentially, result in price reductions on some of Concordia's UK-marketed drugs," Canaccord analysts say

** Short interest at 21.1 pct of outstanding U.S.-listed shares, with risk of short squeeze high at 97/100

** Nearly 3.3 mln Canadian shares traded, about 3.6x 30-day moving average and more than 6 mln U.S.-listed shares traded, about 4x 30-day moving average

** Of the other 8 brokerages covering the U.S.-listed stock, 4 have "buy" or higher ratings, 3 "hold" and 1 "sell"; Median PT is $24.05

** Up to Thursday's close, company's Toronto-listed and U.S.-listed stock had fallen about 84 pct this year