Endo loss widens, R&D chief departs amid regulatory struggles

Endo loss widens, R&D chief departs amid regulatory struggles

February 28, 2014 | By Arlene Weintraub

Endo's ($ENDP) turnaround effort continues, as the embattled company embarks upon big changes to address its declining fortunes. The company reported last night that its chief scientific officer is out, and a few hours later, it reported earnings with a 22% fall in revenues. All of this comes days after the company agreed to pay $193 million to settle an off-label marketing issue pressed by U.S. authorities.

The Malvern, PA-based drugmaker said Ivan P. Gergel, its executive vice president of research and development and chief scientific officer, would depart the company at the end of March, as Endo prepares to shift its R&D operation to its new global headquarters in Dublin. As for earnings, fourth-quarter revenues fell to $585 million, down 22% from the same period a year ago, and a net loss in the quarter of $776 million that widened from a loss of $716 million in the year-ago period.

The company's total revenues for 2013 dropped 7% to $2.6 billion, while its net loss came in at $685 million, versus $740 million in 2012. Endo did point out one bright spot: Its 2013 adjusted diluted earnings per share of $4.79 beat its previously issued guidance by 4 cents.


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WTF?

 

That idiot Gergel is no loss to the company and should never have been hired in the first place. Another of Holvack's follies

 

Well you may want to troll the Valeant threads regarding SH, his replacement.

 

And you hire sue hall?

Omg what idiots you hire someone from Valeant who knows nothing about R&D or drug development. She does know how to be political and back stabbing. Good luck, endo is surely headed to hell in a hand basket.

 

Insider Selling: Endo Health Solutions EVP Unloads 75,637 Shares of Stock (ENDP)
Posted by Logan Wallace on Mar 11th, 2014 // No Comments

Endo Health Solutions logoEndo Health Solutions (NASDAQ:ENDP) EVP Ivan P. Gergel sold 75,637 shares of the stock in a transaction dated Monday, March 10th. The stock was sold at an average price of $72.47, for a total transaction of $5,481,413.39. Following the completion of the sale, the executive vice president now directly owns 27,649 shares of the company’s stock, valued at approximately $2,003,723. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.
Endo Health Solutions (NASDAQ:ENDP) traded down 0.45% on Tuesday, hitting $72.72. The stock had a trading volume of 1,943,725 shares. Endo Health Solutions has a 52 week low of $29.94 and a 52 week high of $82.16. The stock’s 50-day moving average is $71.84 and its 200-day moving average is $59.39. The company’s market cap is $8.408 billion. Endo Health Solutions also saw a large growth in short interest during the month of January. As of February 28th, there was short interest totalling 25,245,829 shares, a growth of 12.9% from the February 14th total of 22,359,636 shares. Approximately 0.0% of the company’s stock are short sold. Based on an average daily volume of 3,868,063 shares, the days-to-cover ratio is currently 6.5 days.
Endo Health Solutions (NASDAQ:ENDP) last posted its quarterly earnings results on Friday, February 28th. The company reported $0.96 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.93 by $0.03. The company had revenue of $584.95 million for the quarter, compared to the consensus estimate of $620.90 million. During the same quarter in the prior year, the company posted $1.62 earnings per share. The company’s quarterly revenue was down 26.8% on a year-over-year basis. Analysts expect that Endo Health Solutions will post $3.64 EPS for the current fiscal year.


A number of research firms have recently commented on ENDP. Analysts at Leerink Swann raised their price target on shares of Endo Health Solutions from $77.00 to $85.00 in a research note on Monday. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Endo Health Solutions in a research note on Tuesday, March 4th. They now have a $81.00 price target on the stock. Finally, analysts at FBR Capital Markets raised their price target on shares of Endo Health Solutions from $52.00 to $82.00 in a research note on Tuesday, March 4th. They now have a “market perform” rating on the stock. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and six have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $60.18.
Endo International PLC, formerly Endo Health Solutions Inc, is a specialty healthcare solutions company focused on branded and generic pharmaceuticals, devices and services.

 

Good work if you can find it!


http://online.wsj.com/article/PR-CO-20140313-913085.html

 

This guy milked the company for all he could get, while producing almost nothing. What a joke

 

I don't agree with the statement above at all. Ivan did a great job while at Endo!!!!

 

I love the irony above.
No question he did a great job for himself.
I'll bet in his 6-7 years he sucked close to $20Million in salary and options (he was famous for pulling the trigger on options at the most opportune moment) out of Endo while delivering virtually zero.

 

Please delinate what he accomplished besides driving all of the R&D talent out of the company

 

What is really disurbing is that he will go to another company and either duplicates the disastrous decisions he made here, or some believe he will become a CEO somewhere. It is very sad the number of good people that worked in the old Endo R&D that he single handedly drove out of the company.

 

I think Ivan was forced to follow Holveck's obsession over AVEED. So much of R&D resources went into AVEED, that there was nothing left for the R&D budget.

However, one big mistake by Ivan was early on during his leadership. Endo researched this pain med in discovery and non-clinical, and submitted an Investigational New Drug Application to the FDA. I think it was EN3318, but my memory is a little foggy on the official designation. Anyway, Endo R&D worked their ass off to submit the IND, a huge task. Guess what happened next? One day after the IND was submitted, Commercial went to R&D, basically said, what is EN3318, how can we sell it. A day latter, the IND was quietly withdrawn from the FDA because, R&D realized there was no indication for the drug. True story. The fact that R&D would spend all that work without having a clue on an indication, is not good and clearly Ivan should have some responsibility for that.

I think Ivan saw value in R&D products like Pagoclone and the the implant for schizophrenia but had his hand tied from Holveck.

Pagoclone is interesting because it was the only drug ever studied for stuttering and patients swore it worked. However, it was passed on from one company from the next, finally to Indevus. Indevus was not good at crossing their "t's" and dotting their "i's". At the end of the last big Pagoclone study, after reviewing the study results, the head of Indevus Clinical Operations, said to the Endo clinical team "Maybe all the study drug bottles were labeled with the wrong strengths. We should get all the bottles and try and figure out what happened." This was said because the lower dose worked better than the higher dose, which makes no sense. But we'll never know if that was the case and if Pagocolone just needed to be studied at a higher dose with a study not conducted by anyone from Indevus. It was pulled from Endo's pipeline. Also, the implant for schizophrenia, a very novel drug formulation was always put way behind for AVEED.

Then you have BEMA, a new formulation for an existing marketed drug that's known to be poor for pain with the partner having a major Phase 3 failed study before Endo even signed the contract.

Bottomline, Ivan followed Holveck's orders and Holveck followed the board's orders. Until the board of directors change, Endo won't change.

And it must be said, Ivan had the coolest car out of anyone at Endo.

 

I find myself really laughing at this post, it is so completely wrong. Holveck was an idiot to be sure and was puppet of the board, but Ivan was a terrible leader and manager. He thought he knew a great deal more than he actually did, and listen to no one. Virtually all of the talented people in the old Endo R&D and Medical Affairs left because of him. Would agree he knew how to take care of himself no matter who he step on in the process

 

I do understand the sentiment but I doubt he will become a CEO anywhere as his reputation precedes him and it is not good. Was talking to the head of drug development at another company and he stated most people in the industry knew Gergel had no idea of what he was doing.

 

On March 7, 2014, the Registrant announced that it had appointed Susan Hall, Ph.D. to the position of Executive Vice President, Chief Scientific Officer and Global Head of Research & Development and Quality, effective March 10, 2014. Dr. Hall will be based in Dublin, Ireland at Endo's new global corporate headquarters. Dr. Hall replaces Dr. Ivan P. Gergel, who is vacating his position as Executive Vice President, Research & Development and Chief Scientific Officer of the Registrant.

The only thing they will be doing in Ireland is getting tax breaks and stamping invoices...ha ha ha corp. greed is good.

 

Oh snap! That is what I look for in leadership at any company I work for.

 

That is not disturbing. That is great. You can do the same thing if you grow a brain and some balls.

 

Fact is too many Endo executives had balls growing in their brains, real dick-headed thieves.

 

You are an idioit