Endo Pharma’s stock logs its largest one-day loss in 14 years
Shares of Endo Pharmaceuticals plunged in heavy trade Friday, as they suffered their worst one-day decline in 14 years on the heels of a disappointing outlook for profit and sales.
The Dublin, Ireland-based drugmaker’s stock ENDP, -2.03% tumbled 39% to the lowest close at the lowest level since May 29, 2009. That’s the third-biggest percentage selloff since the company went public in September 1996, behind the 46% drop on June, 24, 2002 and the 59% crash on Aug. 3, 1999. The rout shaved about $2.3 billion off the company’s market valuation.
Volume shot up to 57.8 million shares, which was nearly eight times the full-day average over the past 30 days, according to FactSet.
The stock was the biggest decliner in the S P 500, and the most active on the Nasdaq exchange, according to FactSet data.
The company said late Thursday that it expects full-year 2016 adjusted earnings per share of $4.50 to $4.80, below the FactSet consensus analyst estimate of $5.68. Revenue was projected to be $3.87 billion to $4.03 billion, compared with the FactSet consensus of $4.3 billion. That trumped better-than-expected first-quarter earnings and revenue .
The company blamed its disappointing outlook on new “unanticipated” competition, greater-than-expected price declines across the generics sector and delays on regulatory actions related to certain products.
Endo also said Brian Lortie, president of its U.S.-branded pharmaceuticals business, decided to step down, after seven years with the company.
Analyst Jason Gerberry at Leerink Partners cut his rating on the stock to market perform, after maintaining an outperform rating for at least the past three years. The analyst said he found it “increasingly difficult” to be constructive on any of the company’s sales-growth drivers. He slashed his stock price target to $23 from $37.
“We are lowering our rating…based on the revised business outlook, limited near-term catalysts and out lack of conviction that the [management] team can turnaround the business in a timely fashion,” Gerberry wrote in a Friday note to clients.
Copyright 2016 MarketWatch, Inc. All rights reserved.
No results found