Endo shares plunge almost 40% as company cuts FY outlook
Shares in Endo International (Nasdaq: ENDP) plunged to close down nearly 40% after the company cut its full-year earnings forecast due to new generic competition.
The painkiller maker said earnings will be impacted by higher than estimated price erosion across the generics sector including for its Voltaren Gel.
The company now expects adjusted earnings of $4.50 to $4.80 on revenue of $3.87 billion to $4.03 billion for the year.
For the first quarter, Endo reported adjusted earnings of $1.08 a share on revenue of $964 million.
Chief Executive Rajiv De Silva said: “We are restructuring our business to successfully meet these challenges and to position Endo for future growth. We believe in the potential of our core long-term growth drivers: Xiaflex, including its related pipeline, Belbuca and the Par generics pipeline and sterile injectables business.”
As part of restructuring, Endo said it will close its plant in Charlotte, North Carolina, and cut jobs at the plant in Huntsville, Alabama.
Separately, Endo announced its head of US branded pharmaceuticals, Brian Lortie, was stepping down once the company found a successor.
Shares in the company closed down 39.2% to $16.17 Friday on the Nasdaq.
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