|Bid||3.9200 x 1400|
|Ask||3.9300 x 1800|
|Day's Range||3.8600 - 4.1900|
|52 Week Range||1.9700 - 18.5000|
|Beta (3Y Monthly)||2.31|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 6, 2019 - Nov 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.47|
Shares of companies involved in the federal opioid litigation were falling Monday morning, after Purdue Pharma’s board declared bankruptcy on Sunday and the company announced the terms of its settlement with states and local governments in the sprawling opioid lawsuit.
Mallinckrodt's (MNK) shares gain as it agrees to sell its contract manufacturing unit to raise cash to settle liabilities from various opioid litigations.
Endo International (ENDP) files BLA for collagenase clostridium histolyticum (CCH) for the treatment of cellulite in the buttocks.
Endo International (ENDP) files BLA for the additional indication of Xiaflex [collagenase clostridium histolyticum (CCH)] for the treatment of cellulite in the buttocks.
(Bloomberg) -- Bearish bets against some of the top suppliers of opioid painkillers are paying off big as their stocks plunge on the potential of a costly reckoning for their role in fueling an epidemic of addiction to the drugs.Short-sellers in Mallinckrodt Plc, Endo International Plc and Teva Pharmaceutical Industries Ltd., which are among the most exposed to opioid litigation, have pocketed $880 million since May 1, according to data from financial analytics firm S3 Partners. Shares of the three companies have lost between 67% and 95% in the last year as Wall Street attempts to quantify the billions of dollars in liabilities they could face and bankruptcy concerns mount.Bearish bets against Mallinckrodt have been the most profitable. Short-sellers have cleared $495 million since the start of May, when activity “started getting very active,” Ihor Dusaniwsky, S3’s head of research said by email. It was also right after new details of Mallinckrodt’s dispute with the Centers for Medicare and Medicaid Services over rebates for its top-selling drug Acthar emerged.Mallinckrodt’s shares have since plunged to less than $2 from more than $15. A Bloomberg report on Wednesday that the company had hired a restructuring firm to advise on options sparked concerns from analysts that a bankruptcy filing could be imminent.Teva and Endo have troubles of their own beyond the opioid crisis as the copycat drugmakers are also named in litigation alleging that they colluded to fix prices for generic drugs. Endo bears are up $123 million since the beginning of May, while Teva shorts have reaped $262 million in mark-to-market profits, according to S3 data.While Mallinckrodt shares on Friday were clawing back some of Thursday’s 39% plunge, they were still down about 95% from a year ago. The company should be able to meet obligations on $700 million in debt coming due in April 2020, it’s the outcome of the ongoing opioid suits that’s the “wild-card” putting Mallinckrodt “in a precarious position,” SVB Leerink analyst Ami Fadia told clients in a note. She cut her price target to $2 from $7.To contact the reporters on this story: Cristin Flanagan in New York at firstname.lastname@example.org;Bailey Lipschultz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Endo Announces Submission of Biologics License Application to FDA for Collagenase Clostridium Histolyticum (CCH) in Patients with Cellulite
Mallinckrodt (MNK) plunges as the risk of filing for bankruptcy rises ahead of the multi-district opioid litigation scheduled next month.
(Bloomberg Opinion) -- The opioid crisis is squeezing the scant remaining air out of one of the biggest stock bubbles in recent years.From 2012 to 2015, investors embraced so-called specialty-generic pharmaceutical firms including Endo International PLC, Mallinckrodt PLC and the company formerly known as Valeant Pharmaceuticals (now Bausch Health Cos.). These drugmakers mixed branded medicines with copycat treatments in varying proportions, and often grew via aggressive acquisitions. Analysts and hedge funds hyped the sector in spite of escalating debt loads. At a peak in July 2015, seven of the groups biggest companies were worth a combined $370 billion. After a report Wednesday that Mallinckrodt has hired restructuring advisers as it faces opioid-related lawsuits and looming liabilities, those same seven are worth about $86 billion; Mallinckrodt alone has seen its market value plunge from a peak of more than $15 billion in 2015 to a mere $134 million today. While only some of the group are exposed the same way Mallinckrodt is to potential losses from opioid litigation, the threat of large settlements and jury awards has accelerated what’s been a steady and at times precipitous decline for the whole group. Many of these companies followed a playbook that was tailor-made to attract investors at a time when biopharma sentiment was boisterous. Like traditional drugmakers, they offered the promise of hefty profits, but with far less expensive and risky R&D spending. The idea was that revenue from generic drugs would generate steady cash flow, allowing these companies to acquire specialty drugs from rivals, slash costs, and polish up neglected medicines. And cheap debt enabled lots of significant deals.Pershing Square’s Bill Ackman declared Valeant an undervalued platform gem in 2015 as he promoted his substantial investment in the firm. The hedge fund investor argued that the company’s durable products and acquisition track record could see its share price pass $500 by 2020. Plenty of companies emulated the strategy as Valeant’s shares soared, or were pushed into unwise and expensive deals in the resulting heated acquisition environment. Reality bit hard, even for firms that didn’t fully embrace the platform model. It turns out that it’s hard to consistently boost sales of older products, which made up a disproportionate share of even the branded portfolios at these companies. The cost of acquisitions skyrocketed as stock valuations rose, adding to the pressure to perform. The unsurprising result was a cornucopia of allegedly unsavory sales practices, from massive price increases to suspect relationships with pharmacies and price-fixing. Valeant notoriously hiked the prices of two emergency heart medicines by more than 200% and 500% right after acquiring them in 2015; today, Mallinckrodt charges more than $38,000 a vial for a decades-old drug for treating infantile spasms that once cost as little as $40.Pricing pressures began to crop up not just for branded specialty drugs, but in the previously reliable and growing U.S. generic business. These companies didn’t have the drug pipeline or financial flexibility to react when their products proved less durable and profitable than expected. Shares began to plunge as investors started to realize that the ambitious growth targets throughout the sector weren’t remotely achievable and that massive debt payments loomed. Opioid liabilities may be the final straw for companies like Mallinckrodt, Endo, and Teva Pharmaceuticals International that have significant exposure to thousands of ongoing lawsuits. The first two especially have flimsy balance sheets left over from their acquisition days and as they look to manage their debts, bankruptcy isn’t out of the question. This unusually large risk is another of the many things that bulls missed when they piled into the sector at inexplicable valuations. Notably, Bausch – the former Valeant – is free of that particular issue and seems to be slowly digging itself out of its hole. Its past heights are out of reach, however, and others may not be as lucky. The pharmaceutical business is uniquely complicated and exposed to significant, sudden shifts, and within the industry, the specialty-generic sector is uniquely unsuited for high-leverage gambles and ungainly roll-ups – however enticing their appeal. Next time a company comes around to pitch a simple and largely R&D-free path to riches in the drug business, let’s hope investors are wise enough to think twice before jumping in.To contact the author of this story: Max Nisen at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Max Nisen is a Bloomberg Opinion columnist covering biotech, pharma and health care. He previously wrote about management and corporate strategy for Quartz and Business Insider.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The settlement also calls for Endo to provide up to $1 million worth of non-opioid products to the counties free of charge.
Endo Announces Execution of Final Settlement Agreement and Release Resolving "Track 1" Opioid Cases
DUBLIN , Sept. 3, 2019 /PRNewswire/ -- Endo International plc (NASDAQ: ENDP) announced today that one of its operating companies, Par Pharmaceutical (Par), has begun shipping an authorized generic version ...
Purdue Pharma filed for chapter 11 bankruptcy today after reaching a tentative deal with 24 state attorneys general that accused the company of fueling the opioid crisis. Yahoo Finance's Ines Ferre joins Akiko Fujita on 'The Ticker' to discuss.