Endo International Plc (NASDAQ:ENDP) jumped 33% following the rally of its debt on Friday following the settlement of claims by New York regarding its opioid marketing. As a result, the company averted a potential $1 billion verdict and the possibility of being stripped of legal defenses in the ongoing suit in the state.
The $50 million settlement announced on Thursday was for allegations that the company’s marketing efforts and sales helped fuel the opioid crisis over the addictive painkillers. In addition, New York Attorney General Letitia James’ lawyers and two long island counties accrued the company of using illegal strategies turning its Opana painkiller into a hit.
On Friday, Endo’s bonds were big gainers, with its 6% notes expected in 2028 climbing 5.25 on the dollar and the 9.5% bonds expected in 2027 rallying 2.875 cents to 100.125. The stock also gained 58.6% to $3.3, which is the most significant gain so far. Following Endo’s settlement, four defendants remain in the New York trial, including Teva Pharmaceuticals Industries and one of its subsidiaries. In addition, a unit of Allergan Ltd and ANDA Inc. ENPD is worth keeping an eye on.
Market Reaction:
On Friday, ENDP stock surged 33% at $2.79 with more than 119.52 million shares, compared to its average volume of 10.54 million shares. The stock has moved within a range of $2.5100 – 3.3300 after opening the trade at $2.54.
