SOURCE: Export Development Canada

Export Development Canada

November 19, 2014 00:31 ET

EDC Announces USD 22.5 M in Recently Completed Concordia Healthcare Corp. Financings

OTTAWA, ON--(Marketwired - November 19, 2014) -  Export Development Canada (EDC) today announced it participated in two recent financings for Oakville-based Concordia Healthcare Corp. ("Concordia" or "the Company") (TSX: CXR) (OTCQX: CHEHF). Concordia deployed the EDC financing to help acquire pharmaceutical products for distribution in the United States.

EDC is Canada's leading provider of financing and insurance for Canadian companies with sales or business in other countries. Concordia is a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population.

EDC financed USD 20 M to support Concordia's acquisition of Donnatal®, indicated for the treatment of irritable bowel syndrome and acute enterocolitis. This financing was part of a USD 195 M facility arranged by GE Capital, Healthcare Financial Services.

EDC also financed USD 2.5 M to support Concordia's acquisition of the United States and Puerto Rican rights to Zonegran® (zonisamide), a drug used for the treatment of partial seizures in adults with epilepsy. This financing was part of a USD 95 M facility led by General Electric Capital Corporation.

"The acquisition of Zonegran for commercialization and sale in the United States and Puerto Rico, along with the acquisition of rights to Donnatal, further diversifies Concordia's pipeline of legacy drugs, which management of Concordia believes will provide a profitable infrastructure that supports development of Concordia's orphan drugs," said Mark Thompson, CEO of Concordia. "We appreciate EDC's support of Concordia's recent acquisitions." 

EDC has seen a marked increase in the export potential for Canada's biotech and life sciences companies in the past five years. As a result, EDC has been working with industry leaders and associations to identify the right kind of financial products and services needed for them to compete and win abroad.

"Canada's growing life sciences sector revenues are increasingly export driven and also rely on sales from Canadian foreign affiliates," said Carl Burlock, Senior Vice-President, Financing and Investments, EDC. "EDC has meaningful financial solutions to help these dynamic companies grow, and we can help connect them with new opportunities throughout our network of global customers and partners."

"We know that lending against assets and intellectual property is the biggest need for companies operating in this sector," said Antonio Lopes, Strategic Account Executive and Lead of Life Sciences and Healthcare Cluster, EDC. "EDC can help Canadian companies with similar forms of financial solutions. If this sounds like something your company is looking at, give us a call."

EDC is also looking to help Canadian companies grow their international business opportunities in related sectors like medical devices, mobile and digital health, e-health, and healthcare services. In addition, EDC is also looking to leverage Canadian infrastructure capabilities to pair up with companies in Canada's broader healthcare sector and identifying opportunities for complete turnkey solutions bids for foreign hospital and clinics projects.

In 2013, more than 145 companies in the Canadian life sciences and healthcare sector used EDC's products and services to finance and insure CAD 898 M of their foreign contracts and business.

Canadian companies with similar needs can call 1-888-434-8508 or visit EDC financing solutions.

About EDC

EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment. For more information about how EDC can help your company, visit www.edc.ca.

About Concordia
Concordia is a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population. Concordia's legacy pharmaceutical division, Concordia Pharmaceuticals Inc., consists of the following products: ADHD-treatment Kapvay® (clonidine extended release tablets), head lice treatment Ulesfia® (benzyl alcohol) Lotion, asthma-related medication Orapred ODT® (prednisolone sodium phosphate orally disintegrating tablets), irritable bowel syndrome treatment Donnatal® (belladonna alkaloids, phenobarbital) and Zonegran® (zonisamide) for treatment of partial seizures in adults with epilepsy. Concordia's specialty healthcare distribution (SHD) division, Complete Medical Homecare, distributes medical supplies targeting diabetes and related conditions. Concordia's orphan division, Concordia Laboratories Inc., manufactures PHOTOFRIN®. PHOTOFRIN is marketed by Pinnacle Biologics, Inc. in the United States.

Concordia operates out of facilities in Oakville, Ontario; Lenexa, Kansas; Chicago, Illinois; Bridgetown, Barbados; and Charlottesville, Virginia.

Notice regarding forward-looking statements:

This release includes forward-looking statements regarding Concordia and its business, which may include, but is not limited to, statements with respect to the impact of the product acquisitions on Concordia's financial performance, Concordia's growth, Concordia's infrastructure, the ability of Concordia's legacy pharmaceutical division to support development of Concordia's orphan drugs, the development of Concordia's orphan drugs and other factors. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of Concordia's management, and are based on assumptions and subject to risks and uncertainties. Although Concordia's management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Concordia, including risks regarding the pharmaceutical industry, the failure to obtain regulatory approvals, economic factors, market conditions, the equity markets generally, risks associated with growth and competition, risks associated with Concordia's products and/or divisions and many other factors beyond the control of Concordia. Although Concordia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Concordia undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contact Information

  • For more information, contact: 
    Phil Taylor
    Export Development Canada
    E-mail: ptaylor@edc.ca
    Tel: (613) 598-2904