We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Endo (ENDP) Gets Subpoena From Florida for Opioid Misuse
Read MoreHide Full Article
Endo International plc announced that its subsidiary, Endo Pharmaceuticals Inc. (EPI), received a grand jury subpoena from the United States Attorney's Office for the Southern District of Florida seeking documents and information relating to products containing opioid painkiller oxymorphone.
Endo stated that the subpoena requests documents pertaining those produced in the past or pending lawsuits as well as those relating to product safety and efficacy, overdoses, diversion, thefts, overprescribing, abuse/misuse, dependency or tolerance, withdrawal, addictiveness, adverse events and manipulation along with many other documents.
We note that the company has been under scanner in recent times due to misuse of its painkiller, drug Opana ER. In March 2017, the FDA Drug Safety Risk Management and Anesthetic and Analgesic Drug Products Advisory Committees voted in the ratio of 18 to 8 and consented that reformulated Opana ER did not outweigh public health risks. Few members stated that the benefits are now overshadowed by the continuing public health concerns around the product's misuse, abuse and diversion. Thereafter, the FDA directed the company to remove the drug from the market in June 2017. The move comes in the wake of widespread opioid abuse epidemic. The drug represented 4% of total 2016 revenues.
The news of subpoena hit the company’s stock which however managed to turn around. Endo’s stock has tumbled 42.9% over a year as against the industry’s gain of 11.5%.
The branded pharmaceutical’s revenues are expected to decline in the mid to high teens as the business will be impacted by continued generic competition for established products, product divestitures and ceasing shipments of Opana Er. The generic business is also under pressure due to intensifying consortium pricing pressure and additional competitive entrants along with product discontinuations as well as discrete factors, including destocking and shifts in purchase timing due to market conditions.
Other companies like Mallinckrodt plc are also under the scanner for the same.
Zacks Rank & Stocks to Consider
Endo currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the healthcare sector are Exelixis, Inc. (EXEL - Free Report) and Sucampo Pharmaceuticals . While Exelixis sports a Zacks Rank #1 (Strong Buy), Sucampo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis’ earnings per share estimates have moved up from 72 cents to 73 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%.
Sucampo’s earnings per share estimates have moved up from $1.15 to $1.19 for 2018 in the last 60 days. The company delivered a positive earnings surprise in three of the last four quarters, with an average beat of 15.63%.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
Endo (ENDP) Gets Subpoena From Florida for Opioid Misuse
Endo International plc announced that its subsidiary, Endo Pharmaceuticals Inc. (EPI), received a grand jury subpoena from the United States Attorney's Office for the Southern District of Florida seeking documents and information relating to products containing opioid painkiller oxymorphone.
Endo stated that the subpoena requests documents pertaining those produced in the past or pending lawsuits as well as those relating to product safety and efficacy, overdoses, diversion, thefts, overprescribing, abuse/misuse, dependency or tolerance, withdrawal, addictiveness, adverse events and manipulation along with many other documents.
We note that the company has been under scanner in recent times due to misuse of its painkiller, drug Opana ER. In March 2017, the FDA Drug Safety Risk Management and Anesthetic and Analgesic Drug Products Advisory Committees voted in the ratio of 18 to 8 and consented that reformulated Opana ER did not outweigh public health risks. Few members stated that the benefits are now overshadowed by the continuing public health concerns around the product's misuse, abuse and diversion. Thereafter, the FDA directed the company to remove the drug from the market in June 2017. The move comes in the wake of widespread opioid abuse epidemic. The drug represented 4% of total 2016 revenues.
The news of subpoena hit the company’s stock which however managed to turn around. Endo’s stock has tumbled 42.9% over a year as against the industry’s gain of 11.5%.
The branded pharmaceutical’s revenues are expected to decline in the mid to high teens as the business will be impacted by continued generic competition for established products, product divestitures and ceasing shipments of Opana Er. The generic business is also under pressure due to intensifying consortium pricing pressure and additional competitive entrants along with product discontinuations as well as discrete factors, including destocking and shifts in purchase timing due to market conditions.
Other companies like Mallinckrodt plc are also under the scanner for the same.
Zacks Rank & Stocks to Consider
Endo currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the healthcare sector are Exelixis, Inc. (EXEL - Free Report) and Sucampo Pharmaceuticals . While Exelixis sports a Zacks Rank #1 (Strong Buy), Sucampo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis’ earnings per share estimates have moved up from 72 cents to 73 cents for 2018 in the last 60 days. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 572.92%.
Sucampo’s earnings per share estimates have moved up from $1.15 to $1.19 for 2018 in the last 60 days. The company delivered a positive earnings surprise in three of the last four quarters, with an average beat of 15.63%.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>