Endo International CEO steps down, Campanelli named successor

Fri Sep 23, 2016 3:36pm EDT
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By Ankur Banerjee

(Reuters) - Endo International Plc (ENDP.O: Quote) said Chief Executive Rajiv De Silva had stepped down and would be replaced by generics division head Paul Campanelli, as the drugmaker grapples with a large debt load and mounting pressure on some of its drug prices.

Endo's shares rose as much as 18 percent to $23.98 on Friday as the company also maintained its full-year profit and revenue forecasts.

Campanelli joined Endo in 2015 following the company's $8-billion acquisition of generic drugs maker Par Pharmaceutical, where he was CEO since 2012.

At Endo, Campanelli headed the generic and OTC drugs business, which accounted for about 60 percent of the company's total revenue through the first half of 2016.

Under De Silva, a former senior executive at Valeant Pharmaceuticals International Inc (VRX.TO: Quote), Endo embarked on a strategy of acquisition-fueled growth, drawing comparisons with the Canadian drugmaker.

Valeant became a poster child for perceived flaws in the business model of specialty pharmaceutical companies as it came under intense scrutiny from politicians and regulators for its reliance on acquisitions and price hikes to juice growth.

Analysts said Campanelli's appointment underscores the growing importance of Endo's generics business, adding that the transition could mark a shift in focus to operational execution from acquisition-led growth.

"The news doesn't come as a surprise given Endo's stock performance and strategic shift toward a generic-focused portfolio," Leerink Partners analyst Jason Gerberry wrote in a client note.   Continued...