Endo International PLC (NASDAQ: ENDP) is flying early on in the pre-market hours this morning, and for good reason. The company released its earnings for the second quarter, beating expectations. Shortly after the earnings release, another press release came announcing an exclusive licensing agreement. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The earnings and licensing agreement;
- what we’re seeing from ENDP stock as a result; and
- what we’ll be watching for ahead.
ENDP Announces Earnings And Licensing Agreement
As mentioned above, Endo International is having an incredibly strong start to the trading session this morning after announcing earnings and a licensing agreement. We’ll get to the licensing agreement shortly. In the mean time, here’s what we saw from earnings:
- Earnings – During the second quarter, ENDP generated earnings in the amount of $0.76 per share. That figure came in well ahead of the FactSet consensus estimate of $0.54 per share.
- Revenue – Revenue also proved to be a hit. During the quarter, the company generated revenue of $714.7 million. Analysts expected that the company would generate revenue int he amount of $679.7 million.
Aside from a strong earnings report, ENDP also announced that it has entered into an agreement. In a press release issued early this morning, Endo International announced that it has entered into an exclusive licensing agreement with Nevakar. Under the terms of the agreement, Nevakar will develop and seek FDA approval for five differentiated, sterile injectable products in the United States. Once development and approval is received, Endo will launch and distribute the products. In a statement, Navneet Puri, Ph.D., Founder, President and CEO at Nevakar, had the following to offer:
We are pleased to establish this partnership with Endo, a respected pharmaceutical company with a significant and growing presence in sterile and critical care products. This agreement validates Nevakar’s strong pipeline and business model and furthers our mission to develop innovative pharmaceutical products that improve patient care and quality of life.
The above statement was followed up by Paul Campanelli, President and CEO at ENDP. Here’s what he had to offer:
This important strategic initiative provides us with products that align well with our goal of expanding our sterile injectables’ business and adding more complex 505(b)(2) products into our pipeline. If approved, these drugs will benefit patients by providing new treatment options in the hospital and critical care environment… We look forward to once again working with Dr. Navneet Puri and the Nevakar team to bring these products to market.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. When it comes to Endo International, the news proved to be overwhelmingly positive. Not only has the company entered into a licensing agreement, it has beat expectations with regard to second quarter results. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:00), ENDP is trading at $14.44 per share after a gain of $1.79 per share or 14.15% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ENDP. In particular, we’re interested in following the story surrounding the company’s continued growth following an overwhelmingly strong quarter as well as the progress under the licensing agreement announced today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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