Endo International (ENDP) - Get Endo International Plc Report tumbled Friday after the pharmaceutical company reportedly engaged a financial restructuring advisor to help evaluate its options for dealing with thousands of opioid-related lawsuits.
Shares of the Dublin-based company were down nearly 29% to $2.54 on Friday
Endo engaged consulting firm Alvarez & Marsal Holdings LLC to advise on options that could include a balance-sheet restructuring that would address the company’s liability from litigation around its opioid drugs, as well as its more than $8 billion in debt, The Wall Street Journal said, citing people familiar with the matter.
As of July, there were nearly 3,000 legal cases pending against Endo from states, counties, cities and Native American tribes over opioids, as well as more than 300 lawsuits from hospitals, health systems, unions, and health or welfare funds.
Neither Endo nor Alvarez responded immediately to a request for comment.
Three companies, Mallinckrodt (MNK) - Get Mallinckrodt Plc Report, Purdue Pharma and Insys Therapeutics, have to turned Chapter 11 since 2019 to drive settlements alleging the companies contributed to opioid addiction.
In July, Johnson & Johnson (JNJ) - Get Johnson & Johnson (JNJ) Report and several drug distributors reached a $26 billion settlement with state attorneys general for their roles in the deadly opioid epidemic.
Endo has posted a statement on its website saying that it was "very concerned" about the opioid crisis.
The company statement also said that Endo voluntarily withdrew its opioid pain medication Opana ER from the market, discontinued the research and development of new opioid products and implemented additional anti-diversion measures, including product serialization aimed at thwarting counterfeiting and theft to protect patient safety.
The Food and Drug Administration said in a 2017 statement that it had asked Endo to remove Opena ER from the market "on its concern that the benefits of the drug may no longer outweigh its risks."
The FDA said this was the first time it had taken steps to remove a currently marketed opioid pain medication from sale due to the public health consequences of abuse.