Endo Pharmaceuticals’ (ENDP) fortunes appear to have taken a turn for the better. In May I suggested that exciting drugs in its pipeline could make the stock a four-bagger. In June Endo announced the execution of a master settlement agreement allowing for the resolution of all the company’s known testosterone replacement therapy (“TRT”) product liability claims:
Endo International plc (ENDP) (NASDAQ: ENDP) today announced that its subsidiaries Endo Pharmaceuticals Inc. and Auxilium Pharmaceuticals, LLC (collectively, “Endo” or the “Company”) have executed a definitive master settlement agreement (the “Agreement”) allowing for the resolution of all known testosterone replacement therapy product liability claims against the Company. Under the Agreement, provided certain customary conditions are met, Endo will make a one-time deposit into a qualified settlement fund and participating claimants will release their claims.
Resolving some it its legacy issues related to TRT, opioids, etc. is key to Endo’s survival. The TRT settlement (and potentially others) could further help sentiment for the stock. ENDP is down over 9% Y/Y. However, it is up over 30% year-to-date as Wall Street has begun to notice the stock and the story.
Now market chatter suggests BlackRock (BLK) has made a colossal bet on ENDP. Shocking The Street, a premium investment service the Shock Exchange runs in conjunction with Seeking Alpha, parsed through the implications of BlackRock’s colossal bet. Read more: