Cantor Cuts Endo Pharmaceuticals (ENDP) to Sell; Lowers PT to $43 7:18 AM ET, 01/02/2014 - Street Insider Cantor Fitzgerald downgraded Endo Pharmaceuticals Holdings Inc (NASDAQ: ENDP) from Hold to Sell with a price target of $43.00 (from $54.00). The downgrade relates to lower DCF valuation and concerns about the company's ability to cut costs. Analyst Irina Rivkind said, "We have updated our DCF valuation to include only 2014-2020 cash flows, along with the new debt and cash expected post-Paladin deal. Furthermore, we believe that the company may be unable to make further significant SG&A cuts beyond 2014 unless it divests AMS, especially as it faces the launches of three new promotionally-sensitive products (Aveed, BEMA Buprenorphine, and Zecuity). In this way, the Endo business model differs from Valeant's, which is a vulnerability, in our view. We are still expecting a 4Q:13 earnings beat based on conservative guidance but believe that current share valuation is overly optimistic." For an analyst ratings summary and ratings history on Endo Pharmaceuticals Holdings Inc click here. For more ratings news on Endo Pharmaceuticals Holdings Inc click here. Shares of Endo Pharmaceuticals Holdings Inc closed at $67.46 yesterday, with a 52 week range of $25.01-$67.63.
Why Endo Health Solutions Inc. Shares Slumped By Brian Pacampara | More Articles | Save For Later January 2, 2014 | Comments (0) While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense. What: Shares of Endo Health Solutions Inc (NASDAQ: ENDP ) sank 3% today after Cantor Fitzgerald downgraded the specialty health-care company from "hold" to "sell." So what: Along with the downgrade, analyst Irina Rivkind lowered her price target to $43 (from $54), representing about 36% worth of downside to the previous close. While momentum traders might be attracted to Endo's share-price surge in recent months, Rivkind believes that Mr. Market is expecting far too much operational improvement at this point. Now what: Cantor expects Endo's Q4 to top estimates, but sees the current valuation as pretty steep. "[W]e believe that the company may be unable to make further significant SG&A cuts beyond 2014 unless it divests AMS, especially as it faces the launches of three new promotionally sensitive products (Aveed, BEMA Buprenorphine, and Zecuity)," noted Cantor. "In this way, the Endo business model differs from Valeant's, which is a vulnerability, in our view." When you couple those concerns with the stock's red-hot run of late, waiting for a wider margin of safety seems prudent.
For those that think the price will drop......look what it is doing today. I am a believer that the new management will continue to be good for the stock price......
http://www.lawyersandsettlements.com/articles/transvaginal-mesh-tvt-sling/tvt-sling-transvaginal-mesh-16-19482.html#.UvuEdmqYbb0 ENDO is stop selling WH due to the massive amount of lawsuits. The rate-of-return isn't there to maintain WH.
Endo is stocking up at least $520M to cover vaginal mesh lawsuit legal costs February 24, 2014 | By Mark Hollmer Pennsylvania's Endo Health Solutions ($ENDP) is betting that the thousands of pending lawsuits it faces alleging its vaginal mesh devices caused pain and injury will be costly to defeat or resolve. The device and pharmaceutical company disclosed it is building up a $520 million stash to cover expected fallout from what stands as a significant challenge to Endo and many of its competitors in similar situations. There's more. Endo disclosed in a regulatory filing that the reserve (boosted through a $316 million pretax charge at the end of 2013) could actually grow much higher in the end. It will help support legal matters involving vaginal mesh made by its American Medical Systems Unit. "The increase in our reserve reflects management's ongoing assessment of our product liability portfolio, including the vaginal mesh cases, the status of the company's ongoing settlement discussions related to vaginal mesh litigation and the inherent uncertainty as to the ultimate costs of resolving this litigation," AMS said in its regulatory filing detailing the cash reserve increase and why it was necessary. The company added that it intends "to contest vigorously all currently pending cases and any future cases that may be brought," and also that the ultimate outcome could hurt quite a bit, resulting in such challenges as "losses in excess of insurance reimbursement levels that could have a material adverse effect on our business, financial condition, results of operations and cash flows." Endo hinted last June that it would settle at least some vaginal mesh cases rather than fighting them, disclosing then that it would pay $54.5 million to resolve a number of pending, related product liability cases at that time. Vaginal mesh implants are used to help treat pelvic organ prolapse and a form of urinary incontinence. But they have become controversial, with tens of thousands of patients suing, alleging that the devices caused pain, organ damage and incontinence. Endo isn't the only one dealing with packs of vaginal mesh-related lawsuits. Johnson & Johnson ($JNJ), Boston Scientific ($BSX) and C.R. Bard ($BCR) are also facing troubles regarding their products in the space. J&J, however, recently got a small bit of good news in at least one of the trials. After a week of testimony, a federal district judge in Charleston, WV, ruled that the company's pelvic mesh product did not cause injury. Endo literally bought into its problem, however. In 2011, the company snatched up American Medical Systems, the original manufacturer of its vaginal mesh implants, for $2.9 billion. Patients had begun suing AMS at least three years before that point. Read more: Endo is stocking up at least $520M to cover vaginal mesh lawsuit legal costs - FierceMedicalDevices http://www.fiercemedicaldevices.com/story/endo-stocking-least-520m-cover-vaginal-mesh-lawsuit-legal-costs/2014-02-24#ixzz2uoq51a1K Subscribe at FierceMedicalDevices --- AMS purchased in 2011 for $2.9 BILLION with pending lawsuits in beginning in 2008. Already paid $54.million to settle 6k lawsuits. Saving another $520 MILLION dollars just to cover the mesh lawsuits. We won't mention the Lidoderm lawsuits.
Endo will divest AMS as soon as it can. We cant continue to be on the hook for another 500-700 Million in lawsuits.
And tell me, what companies will pay for our underperforming company with significant existing lawsuits? It would be Tough to give AMS away.
