The Beat Goes on for Endo International plc (ENDP); Cantor Remains Cautious


Endo International plc (NASDAQ:ENDP) shares are up nearly 3% in Monday’s trading session, after the drug maker pre-announced Q3 EPS of $0.85, solidly above consensus estimates of $0.66. Looking ahead, Endo guided its full year fiscal 2017 sales to be in a range of $3.38 billion to $3.53 billion and earn $3.35 to $3.65 per share, versus consensus estimates of $3.47 billion and $3.52 per share.

Cantor analyst Louise Chen commented, “Although the 3Q17 beat is clearly positive, we think concerns will linger regarding whether consensus EBITDA numbers for 2018 have accurately incorporated: loss of exclusivity for Seroquel and Zetia, the loss of Opana ER sales and divestitures. Therefore, we think it may be hard for those on the sidelines to own the stock on a 3Q17 beat without more color on 2018.” As such, Chen reiterates a Neutral rating on Endo shares, with a price target of $9.00. (To watch Chen’s track record, click here)

In addition, Endo announced the Company’s intention to aggressively defend and protect its VASOSTRICT® (vasopressin injection, USP) product franchise and intellectual property, including seeking to prevent the unapproved, non-sterile-to-sterile bulk compounding of vasopressin through a previously announced lawsuit filed by certain of its subsidiaries against the U.S. Food and Drug Administration (FDA) on October 26, 2017. The Company is unaware of any unapproved, non-sterile-to-sterile compounding facilities currently selling or distributing a vasopressin injection product. VASOSTRICT® remains the only FDA-approved vasopressin injection product indicated to increase blood pressure in adults with vasodilatory shock (e.g., post-cardiotomy or sepsis) who remain hypotensive despite fluids and catecholamines.

Endo operates as a pharmaceutical company. It focuses on developing, manufacturing, and distributing of branded and generic pharmaceutical products. The company operates through the following segments: U.S. Branded Pharmaceuticals, U.S. Generic pharmaceuticals and International Pharmaceuticals. The U.S. Branded Pharmaceuticals offers products that focus on the treatment and management of conditions in urology, urologic oncology, endocrinology, and orthopedics. The U.S. Generic pharmaceuticals segment consist of a differentiated product portfolio including high-barrier-to-entry products, first-to-file or first-to-market opportunities that are difficult to formulate, difficult to manufacture or face complex legal and regulatory challenges. The International Pharmaceuticals segment includes a variety of pharmaceutical products for the Canadian, Latin American, South African, and world markets.