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Endo (ENDP) Gains on Settlement of Opioid Cases in New York for $50M
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Shares of Endo International plc surged 32.86% after the company announced that it has settled opioid cases in the New York State in exchange for a total payment of $50 million.
The cases were related to the marketing and sale of prescription opioid medications by Endo and/or alleged failures to take adequate steps to identify and report suspicious orders.
The company along with its wholly-owned subsidiaries, Endo Health Solutions Inc., Endo Pharmaceuticals Inc., Par Pharmaceutical, Inc. and Par Pharmaceutical Companies, Inc., has settled three consolidated cases pending in Suffolk County Supreme Court in the State of New York.
The trial has been ongoing since June 2021.
Consequently, Endo's subsidiaries have been severed from the trial. The settlement includes no admission of wrongdoing, fault or liability of any kind by Endo or its subsidiaries. Also, the settlement value should not be extrapolated to any other opioid-related cases or claims.
The company provided an update on the remaining opioid litigation. Endo is focused on its primary goal of achieving a global settlement in the remaining opioid cases. It is also currently exploring other strategic alternatives and may seek to implement one or more of those alternatives if it is unable to achieve a global settlement.
Earlier, Endo also settled an opioid-related case in the Circuit Court for Sullivan County, TN, in exchange for a total payment of $35 million.
Shares of Endo have lost 61.2% in the year so far compared with the industry’s 10.5% decline.
Image Source: Zacks Investment Research
The opioid litigation has weighed on the shares from the onset. The settlement will give investors some relief as the company has been embroiled in the same for quite some time.
Since 2014, multiple U.S. states, as well as other governmental persons or entities and private plaintiffs in the United States and Canada, have filed suit against Endo and other companies. They have alleged unfair sales, marketing and/or distribution practices with respect to prescription opioid medications.
In June 2017, the FDA requested that Endo remove opioid pain medication, reformulated Opana ER (oxymorphone hydrochloride), from the market because the benefits no longer outweigh the risks. Following the FDA’s request, Endo announced in July 2017 that it would voluntarily remove reformulated Opana ER from the market.
Per a Reuters article on Sep 7, three large U.S. drug distributors and drugmaker Johnson & Johnson (JNJ - Free Report) will proceed with a proposed $26 billion settlement resolving claims that they fueled the opioid epidemic.
Image: Bigstock
Endo (ENDP) Gains on Settlement of Opioid Cases in New York for $50M
Shares of Endo International plc surged 32.86% after the company announced that it has settled opioid cases in the New York State in exchange for a total payment of $50 million.
The cases were related to the marketing and sale of prescription opioid medications by Endo and/or alleged failures to take adequate steps to identify and report suspicious orders.
The company along with its wholly-owned subsidiaries, Endo Health Solutions Inc., Endo Pharmaceuticals Inc., Par Pharmaceutical, Inc. and Par Pharmaceutical Companies, Inc., has settled three consolidated cases pending in Suffolk County Supreme Court in the State of New York.
The trial has been ongoing since June 2021.
Consequently, Endo's subsidiaries have been severed from the trial. The settlement includes no admission of wrongdoing, fault or liability of any kind by Endo or its subsidiaries. Also, the settlement value should not be extrapolated to any other opioid-related cases or claims.
The company provided an update on the remaining opioid litigation. Endo is focused on its primary goal of achieving a global settlement in the remaining opioid cases. It is also currently exploring other strategic alternatives and may seek to implement one or more of those alternatives if it is unable to achieve a global settlement.
Earlier, Endo also settled an opioid-related case in the Circuit Court for Sullivan County, TN, in exchange for a total payment of $35 million.
Shares of Endo have lost 61.2% in the year so far compared with the industry’s 10.5% decline.
Image Source: Zacks Investment Research
The opioid litigation has weighed on the shares from the onset. The settlement will give investors some relief as the company has been embroiled in the same for quite some time.
Since 2014, multiple U.S. states, as well as other governmental persons or entities and private plaintiffs in the United States and Canada, have filed suit against Endo and other companies. They have alleged unfair sales, marketing and/or distribution practices with respect to prescription opioid medications.
In June 2017, the FDA requested that Endo remove opioid pain medication, reformulated Opana ER (oxymorphone hydrochloride), from the market because the benefits no longer outweigh the risks. Following the FDA’s request, Endo announced in July 2017 that it would voluntarily remove reformulated Opana ER from the market.
Per a Reuters article on Sep 7, three large U.S. drug distributors and drugmaker Johnson & Johnson (JNJ - Free Report) will proceed with a proposed $26 billion settlement resolving claims that they fueled the opioid epidemic.
Endo currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are Regeneron Corporation (REGN - Free Report) and Moderna (MRNA - Free Report) . While Regeneron currently sports a Zacks Rank #1 (Strong Buy), Moderna carries a Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates for Regeneron have moved up $3.79 cents for 2021 in the past 60 days. The stock is up 34.3% year to date.
Earnings estimates for Moderna have moved up 13 cents for 2021 in the past 30 days. The stock is up 306.4% year to date.