ENDP - Endo outperforms defying bankruptcy fears and generic entry

• The shares of Endo International ( NASDAQ: ENDP ) rose sharply on Monday even as the company continues to grapple with concerns over the generic threat to a key drug, failure to fulfill debt commitments, and potential bankruptcy filing amid ongoing opioid litigation.

• Despite an ~89% YTD decline, Endo ( ENDP ) has added ~13% over the past 30 days outperforming the broader market, as shown in this graph.
• The upsurge comes despite a recent WSJ report on the company’s plan to file for Chapter 11 bankruptcy without striking a settlement on thousands of opioid claims.
• In June, Dublin, Ireland-based Endo ( ENDP ) opted to skip interest payments owed to its junior bondholders citing the ongoing talks with certain creditors regarding its decision to evaluate strategic alternatives.
• A decline in earnings, driven in part by the loss of exclusivity for its leading sales generator, Vasostrict, has exacerbated the operational issues.
• In May, Piper Sandler downgraded Endo ( ENDP ), noting the generic competition to the vasopressin injection, which added $155.9M to the company topline in 1Q 2022 with ~30% YoY decline.

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