Endo International appears to really be going through it. The generic pharmaceutical company is exposed to opioid litigation after having sold Opana for years. The opioid crisis has dominated the 24-hour news cycle since 2017 when President Trump vowed to bring opioid manufacturers to justice for their role in the crisis. A spike in opioid prescriptions coincided with drug overdose deaths and drug overdose deaths related to opioids; overdose deaths have also been amplified by a wave of heroin use and fentanyl use, even after opioid manufacturers cut prescriptions. That said, opioid manufacturers have voice a willingness to pay for their role in the epidemic.
Johnson & Johnson (JNJ) and the big opioid distributors have signed a global opioid settlement for $26 billion. Settlements by Purdue Pharma and Mallinckrodt indicate that opioid lawsuits could be winding down. Endo International (ENDP) settled with several counties in Tennessee for $35 million and settled with New York State for $50 million. However, the stock remains under $3 and trades as if Endo is about to go belly up. Opioid settlements, its $8 billion debt load and a patent trial loss pursuant to Vasostrict, its largest drug, have dominated the narrative. Less-talked about the never-ending short selling that has kept the stock depressed. Shorts appear to be acting irrationally, but until someone makes them pay, the irrational behavior could continue.
We at Trump And The GE believe some of the volatile trading over the past month could involve a strategic buyer (or two) who have taken (or will take) a sizeable equity stake in ENDP. Once these facts materialize, it could drive more investors into the stock, spiking ENDP. Trump And The GE: 8 Barbarians At The Gate will happen Saturday September 18th at 3PM. We will discuss ENDP’s fair value and who could be knocking at the gate. The picture in the video features Reginald Lewis, one of the first black billionaires. The ’80s-style deal maker definitely would have made a run at Endo.