Endo International (ENDP) reported Q2 2019 revenue of $699.73 million and EPS of -$0.47. The company beat on Non-GAAP EPS and revenue, but missed on GAAP EPS. The stock sold off violently after earnings. After reaching a 52-week low of $2.25, ENDP is still off over 15% post-earnings. This was an important quarter the for the company. Endo needed to prove the strength of its franchise amid headwinds in its Generics business. Competitors like Teva (TEVA) and Mylan (MYL) have experienced headwinds in the sector and Endo oftentimes get lumped in with them.
The stock price has been hammered due to exposure to opioid litigation. It is well-known that America has an opioid crisis. The number of accidental deaths related to opioids and the number of people addicted to them have been on the rise. Some believe such accidental deaths are driven by the proliferation of opioid prescriptions. Thousands of lawsuits have been filed by cities, counties and states against drug manufacturers and distributors for their roles in the opioid epidemic. The media has thrown around wild numbers pursuant to ultimate payouts. Who has to pay and how much remains in question. That uncertainty has caused ENDP to fall over 70% Y/Y. However, Q2 earnings results were strong. Read more: