Endo International plc – Ordinary Shares (NASDAQ:ENDP) announced that it has reached agreements to resolve virtually all known U.S. mesh product liability claims and that it is engaged in discussions to resolve the known remaining U.S. claims at reasonable values. Under the agreements, Endo will make installment payments beginning in the fourth quarter of 2017 and continuing through the fourth quarter of 2019. As part of its second quarter 2017 results, the Company intends to increase its mesh product liability accrual by $775 million, which is expected to cover approximately 22,000 U.S. mesh claims, as well as all known international mesh product liability claims and other mesh-related matters. While Endo cannot predict the resolution of any unresolved claims or the number of any future claims, as of the date of this announcement, Endo is unaware of any mesh-related matters not covered by the foregoing accrual increase.
“Beginning in the second quarter of 2017, we aggressively executed a settlement strategy in connection with Endo’s mesh litigation. We believe it is a very important milestone for Endo to have reached agreements to resolve virtually all known U.S. mesh product liability claims,” said Paul Campanelli, Endo’s President and Chief Executive Officer. “While it remains possible that additional claims will be filed, we believe today’s announcement will assist most mesh claimants to move forward with their lives and will permit Endo to move forward with an even greater focus on executing against our core strategic priorities,” he added.
Shares of Endo are down nearly 3% to $9.00 in after-hours trading Monday. ENDP has a 1-year high of $24.93 and a 1-year low of $9.21. The stock’s 50-day moving average is $11.38 and its 200-day moving average is $11.70.
On the ratings front, ENDP has been the subject of a number of recent research reports. In a report issued on August 4, Mizuho analyst Irina Rivkind Koffler reiterated a Buy rating on the stock, with a price target of $19, which represents a potential upside of 104% from where the stock is currently trading. On July 26, BMO’s Gary Nachman reiterated a Hold rating on the stock and has a price target of $15.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Gary Nachman have a yearly average return of 16.1% and 10.4% respectively. Koffler has a success rate of 50% and is ranked #198 out of 4628 analysts, while Nachman has a success rate of 59% and is ranked #695.
Sentiment on the street is mostly neutral on ENDP stock. Out of 13 analysts who cover the stock, 10 suggest a Hold rating and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $14.55, which implies an upside of 56% from current levels.
Endo International Plc 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.