Endo International (ENDP) has been on one heck of a run over the past two months. As of Wednesday the stock had almost doubled since late May. According to financial markets ENDP’s big run was on “no new news,” but we all know that was not true. In June the company executed a master settlement agreement allowing for the resolution of all its known testosterone replacement therapy (“TRT”) product liability claims. This signaled to the market that the company was serious about eliminating exposures to certain product liabilities.
Last month it entered into major distribution deals with Merck (MRK) and Takeda (OTCPK:TKPYY). Such deals could help jump start revenue at a juncture when Endo appears vulnerable. Yesterday the stock tumbled by nearly 4%. Some saw the move as a healthy pullback from the strong momentum over the past few months. The sell off was likely driven by Teva’s (TEVA) disappointing Q2 results.
