Concordia Healthcare has a prescription for growth

A bet on medications no longer of interest to Big Pharma but still being sold to patients across North America is proving hugely profitable for investors in Concordia Healthcare Corp.

Shares of the Toronto-based company, which sells legacy pharmaceuticals that treat conditions such as asthma and attention-deficit hyperactivity disorder, have risen almost 600 per cent since the company went public late last year.

Concordia also sells orphan drugs – which are used to treat patient populations typically less than 200,000 who suffer from rare diseases – and medical devices for diabetics.

The company has been on an acquisition spree as it builds out its specialty pharma business.

While some investors may believe the stock has had its run, others see more growth ahead as long as the company fulfills its promise to buy more products to boost and diversify the business.

“We still like it,” said Bruce Campbell, president and portfolio manager at StoneCastle Investment Management, which has owned the stock since it went public at $6.25 in December, 2013.

It’s one of his company’s largest holdings, at around 4 per cent.

“They’re probably a bit more richly valued than what most investors will look at, but we feel confident they’ll continue to execute on their acquisition strategy.”