Concordia CEOThompson to step down; shares surge

Concordia International Corp. announced that its founder, chairman and chief executive officer Mark Thompson will leave the specialty pharmaceutical company once a successor is named.

The company’s shares surged in both Toronto and New York. They finished up US51 cents or 12.85 per cent to US$4.48 in New York, after earlier trading as high as US$5.55, the big- gest gain since January 2014. The shares are down 85 per cent in the past 12 months through Thursday. In Toronto, Concordia shares, which touched $6.16, closed up 73 cents or 13.9 per cent at $5.98.

Reuters reported this month that the company was discussing alternatives to a leveraged buyout, including selling a minority stake to a private equity firm. The talks came after negotiations about selling the company failed to produce a deal that would be acceptable to its board, sources told Reuters.

On Friday, the Oakville, Ont.-based company said in a statement a search process is already underway for new leadership.

No specific reason was given for Thompson’s departure from Concordia, which recently completed a US$350 million debt offering. He and the board agreed that it was an “ideal time” for a change, said Jordan Kupinsky, the company’s lead independent director.

Concordia, which had a market capitalization of $270.1 million as of Thursday close, sells drugs for conditions ranging from malaria to heart disease.