BUZZ-Endo International: Sinks after sales warning, pulls drug stocks down

Fri May 6, 2016 10:43am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Updates)

** Drugmaker's shares down 38.6 pct at near 7-year low of $16.33; biggest intraday pct fall in nearly 14 years

** Stock most actively traded on Nasdaq

** Multiple brokerages cut PT and rating after company slashes 2016 revenue and profit forecast to reflect operating challenges in its legacy generic business and pressures on a few of its core brand products

** Leerink cuts Endo's rating to "market perform" from "outperform", Mizuho to "underperform" from "neutral", Piper Jaffray to "neutral" from "overweight"

** Mizuho analysts say they view stock as "toxic," while RBC analysts say they think Endo needs to look at strategic alternatives at this point

** Lowering of guidance was not the surprise, but the magnitude was, Cowen & Co analysts write. "The question remains whether Endo can stabilize its core operations and begin to generate meaningful cash yield."

** Capital Research Global Investors is top shareholder; owned 23 mln shares as of March 31, about 10 pct of the company's shares outstanding

** Other drugmakers also fall on the news: Teva Pharmaceutical falls about 4 pct; Mylan NV dips about 2 pct; Horizon Pharma Plc falls about 6 pct   Continued...