Endo International PLC (NASDAQ: ENDP) is having yet another strong day in the market today following yesterday’s release of certain preliminary results for the third quarter as well as a promise to aggressively defend their intellectual property. Of course, this led to excitement among investors, sending the stock soaring for two sessions in a row and prompting an alert from our friends at Trade Ideas. Today, we’ll talk about what we’re seeing from ENDP in the market, why, and what we’ll be watching for ahead.
What We’re Seeing From ENDP
As mentioned above, Endo International is having yet another incredible day in the market today. The gains are ultimately the result of yesterday’s announcement surrounding preliminary financial results and a pledge to protect key intellectual property. Nonetheless, the stock continues to soar. At the moment (11:06), ENDP is trading at $6.36 per share after a gain of $0.40 per share or 6.71% thus far today.
The News That Caused The Move
At the end of the day, the gains that we’re seeing today are following up on yesterday’s gains as a result of preliminary financial data and an effort to protect intellectual property. In a press release offered yesterday, ENDP announced that for the quarter ending on September 30, 2017, it expects to report the following financial results:
- Revenue – In terms of revenue, Endo International is expecting to report that the figure came in at $785 million for the quarter.
- Net Loss – When it comes to the net loss, ENDP expects that it will report approximately $100 million for the quarter.
- EBITDA – It is expected that EBITDA will come in at approximately $370 million.
- Earnings Per Share – Finally, when it comes to EPS, the company is expected to report $0.85 per share on an adjusted diluted earnings per share basis.
- Guidance – Finally, for the twelve months ending on December 31, 2017, ENDP expects that revenue will come in the range between $3.38 billion and $3.53 billion. EBITDA and EPS are expected to come in between $1.48 billion and $1.56 billion and between $3.35 and $3.65 per share respectively.
Intended Protection Of Intellectual Property
Finally, a big part of the gains that we’re seeing from ENDP has to do with the company’s intent to aggressively defend and protect its VASOSTRICT® product franchise and intellectual property. In particular, the company is working to prevent the unapproved, non-sterile-to-sterile bulk compounding of vasopressin through a previously filed lawsuit against the United States Food and Drug Administration.
This is big news. After all, VASOSTRICT is currently the only FDA-approved vasopressin injection product indicated to increase blood pressure in adults with vasodilatory shock who remain hypotensive despite fluids and catecholamines.
During the third-quarter of 2017, the United States PTO issued new patents relating to VASOSTRICT 20 units/mL. The company holds several patents that protect VASOSTRICT and should prevent the approval of Vasopressin competing treatments until January of 2035, and the company intends on ensuring that their intellectual property is protected.
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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’ll be watching for the earnings release and we are excited for the results. We’re also interested in following the company’s ongoing legal battle with the FDA and their ability to protect VASOSTRICT from competition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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