William Blair Shares Two Cents on Endo International plc (ENDP)

William Blair analyst Tim Lugo reiterates a Market Perform rating on shares of Endo International plc (NASDAQ:ENDP), following the news that the FDA has requested the company to pull its drug Opana ER off the market. Opana ER is an opioid pain medication, and it is now considered that “the benefits of the drug may no longer outweigh its risks.”

“We view this as a clear negative for Endo despite the company “evaluating the full range of options” given the contribution of Opana to its top line as well as the branded margin profile of the product. We believe that Opana ER being taken off the market could lead to downside adjustments to 2017 guidance,” elaborates the analyst.

Consequently, Lugo decreases Opana revenues estimates from $139 million to $91 million in 2017, and from $128 million to $0 in 2018, assuming the drug is out by the end of the second quarter. The analyst points out this event will cost the company 100 basis points per annum and adds, “we believe that the bottom-line impact to Endo could be in the range of $0.10 to $0.12 in 2017 and $0.25 to $0.30 in 2018.”

According to TipRanks, a financial engine that measures and ranks analysts’ and bloggers’ performance, Tim Lugo is ranked #598 out of #4567 analysts. Lugo has a 40% success rate and generates an annual yield of 15.5%.

TipRanks analytics show ENDP as a Hold. Based on 9 analysts offering recommendations for this share, 2 issue a Buy and 7 maintain a Hold. The 12-month average price target stands at $16, making a nearly 43% upside from where the stock is currently trading.


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