![]() If you recall from my first article, " Endo was required to pay out $192.7 million for illegally marketing Lidoderm". The suit alleged that Endo paid a Lidoderm generic producer to delay product launch. Updates Unrelated to Opioid Litigationģ/21/18 - Endo was charged $100 million for its role in a 'pay-for-delay' class action suit regarding a generic formulation of Lidoderm. Trump's speech served as a reminder that federal agencies are going to inject themselves into the ongoing opioid litigation, perhaps further than the ways already discussed by the Department of Justice ( recall: Jeff Sessions creates PIL task force and announces plans for compensation by opioid pharmas).ģ/29/18 - Arkansas joins as the 17th state to sue opioid manufacturers suing Endo, J&J, and Purdue.Ĥ/4/18 - Mizuho Securities downgrades Endo to Neutral from Buy, citing "persistent opioid litigation overhang" amongst other things.Ĥ/6/18 - Florida AG says Florida plans to file lawsuit against opioid manufacturers, though no timetable or specific companies given. There is little insight as to why Judge Polster was pushing for unprecedentedly quick settlements.ģ/14/18 - South Dakota joins as the 16th state to sue opioid manufacturers for denying or misrepresenting the addictive risks associated with opioid drugs suing Endo, J&J, and Purdue.ģ/19/18 - President Trump discusses new steps to combat opioid epidemic in the U.S., including in his speech that "our Department of Justice is looking very seriously at bringing major litigations against some of these drug companies.we'll bring at a federal level." However, it seems the move to a "limited litigation track" was agreeable to both sides, as it obviously should be. If the plaintiffs in the litigation against opioid producers (in this case, the hundreds of states, counties, cities) were pushing for settlements before more investigation was to be done, this would be very good news for Endo. Such staggering increase in opioid overdoses in such a short time frame has increased the already palpable sense of urgency in correcting the opioid epidemic, opioid producing pharmas including Endo.ģ/7/18 - After a collective agreement for more information to be uncovered before any settlements are reached, a federal judge noted that ongoing opioid litigation will be on a " limited litigation track" going forward, including possible test cases to establish precedence. Opioid Related Updates Relevant to Endoģ/7/18 - The CDC released a report indicating that opioid overdoses have spiked 30% in the fourteen month period between July 2016 and September 2017. Below I discuss relevant updates since the publication of my previous article on Endo. Endo's stock price recently fell through a major area of support at $5.85 and subsequently failed to recover.Įndo's continued slide can be accounted for by factors that I discussed in my previous article, as well as many updates surrounding the opioid crisis. Investors who were thinking about initiating a long position on Endo Pharmaceuticals ( ENDP) would have done well to heed my advice regarding Endo from early March, saving a 20% loss. ![]() Currently, my sentiment on Endo remains: do not initiate any positions with long exposure, and close currently held long positions.
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