Endo International (ENDP) has been one of the market’s most perplexing stocks. ENDP hit a 52-week high of over $18 in the second half of 2018. Investors were excited about the potential for Xiaflex to treat cellulite. Late stage clinical trials were extremely positive. The stock free fell after Q3 2018 earnings were announced. Analysts and investors fretted over the fact that an FDA application was not expected until 20219.

Then the opioid epidemic took center stage. The opioid epidemic has dominated the financial news cycle and Endo (among others) has been caught in the middle of it. 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 have been spurred by a proliferation of opioid prescriptions. State attorneys general also claim that drug makers have, in certain instances, fraudulently misrepresented the serious side effects of opioid use.

The overhang from opioid exposure caused ENDP to dip below $2 last week. The stock showed life Friday after the company announced the submission of a Biologics Licence Application (“BLA”) for collagenase clostridium histolyticum (“CCH”) for cellulite. After furious trading ENDP rose over 45% on the news; over 23 million shares traded – four times average daily trading volume. Read more:

print

LEAVE A REPLY

Please enter your comment!
Please enter your name here