Endo (ENDP) Stock Slumps, Oppenheimer: 'Not Surprised' by CEO Change - TheStreet

NEW YORK (TheStreet) -- Shares of Endo Pharmaceuticals (ENDP) - Get Report  were dropping 6.16% to $21.95 in late-afternoon trading on Monday as Oppenheimer analysts said they weren't "entirely surprised" by the pharmaceutical company's recent announcement that Paul Campanelli would take over as CEO

Campanelli replaces Rajiv De Silva. 

Oppenheimer maintained its "perform" rating on shares of the Malvern, PA-based company.

The firm noted that Endo has recently been "hit hard" by recent negative commentary surrounding "erosion in the generics pricing environment."

However, the company seems to be revamping its focus on operational execution vs. business development, with an emphasis on generics pipeline opportunities and product development on the branded side. 

Endo plans to build out a portfolio on a product-by-product basis, rather than emphasizing scale, the firm added. 

TheStreet's Robert Wasserman said the recent management change marks a shift for Endo as it pivots back to being a generic/specialty pharma, rather than being focused on M&As, which serves as good news for investors. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings team rates Endo as a Sell with a ratings score of D. This is driven by multiple weaknesses, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

You can view the full analysis from the report here: ENDP

Image placeholder title

ENDP

data by

YCharts