Endo International plc – Ordinary Shares (NASDAQ:ENDP): Has The Tide Turned?


A leadership rejig, and affirmation of financial guidance helped propel Endo International plc – Ordinary Shares (NASDAQ:ENDP) higher by $3.13 (15.45%) on Friday.

The stock closed the day at $23.39 with 21.07 million shares changing hands. The stock has ended in the green for the third consecutive month in a row. However, that may be small comfort for shareholders because ENDP is down 69.71% from its 52-week high of $77.21.

The company’s clutch of operating entities, Endo Pharmaceuticals, Par Pharmaceutical, Paladin Labs, SOMAR and Litha are engaged in branded pharmaceutical and generic pharmaceutical products as well as over-the-counter medications.

The stock has been on a slide since the $8 billion acquisition in May 2015 of generic drug maker Par Pharmaceutical. Investors have also not taken kindly to the company’s reduced guidance in May 2016.

According to Citigroup, the company may not have sufficient head room to raise prices due to Democratic presidential candidate Hillary Clinton’s plans to restrain price increases on life saving drugs and treatments.

Endo International plc – Ordinary Shares (NASDAQ:ENDP) – change in strategic direction?

The Dublin, Ireland-based Company announced the appointment of Paul V. Campanelli as President and Chief Executive Officer. Campanelli had been at the helm of Par Pharma since 2012.

ENDP also re-affirmed its financial guidance for the third quarter and the full year 2016, expecting    adjusted diluted EPS from continuing operations between $0.77 and $0.82, and $4.50 and $4.80 respectively.

Last month, an analyst at Mizuho upped their rating on the stock from Neutral to Buy and their price target from $16 to $29, citing the possibility of deleveraging due to asset sales. This could turn ENDP into an attractive buyout target for other generic drug manufacturers, the analyst concluded.

Over 92% of the stock is held by institutions and mutual funds.


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