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Ireland-domiciled specialty pharmaceutical company, Endo International plc’s (ENDP - Free Report) shares soared 15.5% after the company announced that its board of directors has appointed Paul V. Campanelli as the new President and Chief Executive Officer (CEO). Campanelli will replace Rajiv De Silva immediately after the latter has stepped down from his position to seek new professional opportunities. Rajiv De Silva had been serving as the President and CEO of the company and as a member of the board since Mar 2013.

Campanelli formerly served as the CEO of Par Pharmaceutical since 2012, which Endo acquired in Sep 2015. Campanelli thereafter presided over Endo’s generic and over-the-counter (OTC) drugs business. We note that generic and OTC business accounted for about 60% of Endo's total revenues through the first half of 2016.

Q3 & 2016 Guidance Maintained

In addition to announcing the appointment of a new CEO, Endo reiterated its third-quarter 2016 and full year financial guidance. For third-quarter 2016, Endo continues to expect revenues in the range of $830 million to $870 million. The Zacks Consensus Estimate for revenues is currently $868.9 million. It still expects earnings in the range of $0.77 to $0.82 per share. The Zacks Consensus Estimate for earnings is currently $0.81 per share.

For 2016, Endo continues to expect revenues in the range of $3.87 billion to $4.03 billion. The Zacks Consensus Estimate for revenues is currently $3.92 billion. Earnings are still expected in the range of $4.50 to $4.80 per share. The Zacks Consensus Estimate for earnings is currently $4.57 per share.

We note that Endo’s both Branded and Generic segments are under pressure. Back in May, the company had significantly lowered its outlook for 2016. Endo had cited the impact of several headwinds, including greater-than-expected price erosion across the generics sector among other factors. This quarter is no different, as the company expects lower U.S.-branded sales due to generic competition for Voltaren Gel, continued slowdown in the testosterone market, and persistent declines in legacy pain products.

The company’s shares are down almost 61% year to date.

ENDO INTL PLC Price

At such a crucial time, the news has been received well by investors. Campanelli, who has solid experience in the generics and branded pharmaceutical industry, will have his work cut out for him.

Endo currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the health care sector include Ligand Pharmaceuticals Incorporated (LGND - Free Report) , Geron Corporation (GERN - Free Report) and VIVUS Inc. (VVUS - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

For 2016, Ligand witnessed a 12.13% increase in its earnings estimates over the past 60 days. The company has also posted an average positive earnings surprise of 36.66% over the last four trailing quarters. The company’s share price has surged nearly 13% year to date.

VIVUS has recorded an average positive surprise of 39.88% over the last four trailing quarters. Share price of the company has gained 5.6% year to date.

In each of the last four trailing quarters, Geron has surpassed expectations, bringing the average positive surprise to 20.78%.

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