Endo shares drop 7% after Mizuho downgrade

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Opioid lawsuits stymie an Endo turnaround, Mizuho says in downgrade

Endo International PLC shares dropped 7% in Wednesday morning trade after the company was downgraded to neutral by Mizuho Securities due to “lower revenues, delayed pipeline contribution, lack of 2018 catalysts, and persistent opioid litigation overhang.” Endo, which makes opioid medications, has been sued by many state and local governments over the company’s alleged role in promoting the opioid crisis. Endo’s opioid medication Opana ER has been most controversial, and the company said last year it would take the product off the market, at the Food and Drug Administration’s request. Though company management has made a number of positive changes, “none of these factors are expected to meaningfully improve share trajectory in the coming year as long as there is legal uncertainty,” Mizuho analyst Irina Koffler said. Even better-than-expected earnings — which has so far been the company’s trend — likely couldn’t bring the company’s shares back meaningfully, she said. Endo shares have plummeted 51% over the last year, compared with a 9.6% rise in the S&P 500 .

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