Specialty pharmaceutical company Endo International (NASDAQ:ENDP) saw its stock go through a collapse last week as it slumped by as much as 62% for the week amidst a heavy selloff.
Trading Data
On Friday, ENDP stock slid 19.50% to $0.4650 with more than 26.84 million shares, compared to its average volume of 7.08 million shares. The stock moved within a range of $0.4201 – 0.6200 after opening trade at $0.5868.
Major News
In light of such a staggering fall, it may be a good time for investors to take a look into the fall and figure out if there could be a recovery around the corner. The selloff in the stock had been triggered by a report in The Wall Street Journal last Wednesday with regards to the company’s plans regarding its debt pile.
The report noted that Endo was locked in negotiations with its major bondholders and lenders concerning the restructuring of its debt, which now stands at more than $8 billion.
One of the major reasons for the downturn in the company’s fortunes is the fact that its major product, the injectable medicine Vasostrict, has been struggling to generate sales on expected levels amidst competition from generic products. In addition to that, opioid-related litigation has also been a source of major problems for Endo. In this situation, the news about the debt restructuring may have come as a source of considerable trepidation for investors.
Technical Data
ENDP stock is below the 20-Day and 50-Day Moving averages of $1.38 and $2.05 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.38.
