Concordia Healthcare Announces Formation Of Special Committee To Review Strategic Alternatives

Shares of Concordia Healthcare Corp CXRX surged higher by 25 percent on Thursday after Bloomberg reported the company is a potential acquisition target.

Bloomberg said that Blackstone Group is considering a takeover of Concordia Healthcare and is engaged in talks with the company about a potential transaction.

Concordia Healthcare is a Canadian-based company that focuses on legacy pharmaceutical products and orphan drugs, including Nilandron for the treatment of metastatic prostate cancer and Photofrin for the treatment of certain rare forms of cancer, currently undergoing testing for potential new indications.

Concordia Healthcare confirmed after Thursday's market close that it has formed a special committee of independent members of its board of directors to consider strategic alternatives that are potentially available.

"The Company has had discussions, however, there can be no assurance that any transaction will occur," Concordia Healthcare added in its press release.

Finally, the company said that it won't be provided any additional comments at this time regarding various strategic alternatives.

Shares of Concordia Healthcare were trading higher by more than 8 percent ahead of Friday's market open. Its Toronto-exchange listed issue gained 25 percent on Thursday to close at C$38.65, implying a market capitalization just shy of C$2 billion, or approximately $1.57 billion.