“One of the biggest challenges to medicine is the incorporation of information technology in our practices.”

– Samuel Wilson

(Source: Air Force Medical Service)

Endo International plc, incorporated on October 31, 2013, is a generics and specialty branded pharmaceutical company. The company has three segments: U.S. Generic Pharmaceuticals, U.S. Branded Pharmaceuticals and International Pharmaceuticals. It has its own brand names and its non-branded U.S. Generic Pharmaceuticals portfolio consists of products, such as tablets, capsules, powders, injectables, liquids, nasal sprays, ophthalmics and patches. The International Pharmaceuticals segment includes various specialty pharmaceutical products for the Canadian, Latin American and world markets.

On June 26, I Know First gave a bullish one month forecast for ENDP. Over that one month period, the stock returned up to 30.67%. Navigating the drug industry, there are some key reasons why Endo stocks grew faster than its competitors:

Blaming the Opioid Crisis on Illegal Distributors – Effectively

Many analysts have been bearish on drug companies because of the decline in opioid sales. Accidental deaths and drug overdoses caused by opioids have spiked over the years and federal agencies are bringing major litigations to these drug companies. In the first half of 2018, Endo stock prices dipped to a low of $5.43 after being issued grand jury subpoenas. Apart from Endo, drug companies Mallinckrodt (MNK) and Insys (INSY) have seen their revenue and earnings fall due to government clamp on opioid prescriptions.

However, on July 20th, Endo and Mallinckrodt launched a counterattack against drug dealers, illegal websites, “dark web” retailers and corrupted healthcare providers. While some lawyers believe that drug companies would not be absolved from liability for the conduct of third parties, public confidence in Endo soared and reflected in the stock prices. The stock spiked 9.09% from July 20th to July 26th.

Opioids (Source: Flickr)

The counterattack seeks to shift any liabilities from Endo to individuals and companies who unlawfully sold prescription opioids, and hold them financially responsible for damages assessed against Endo. Charged individuals and entities include online retailer RxCash.Biz, which sells misbranded opioids, an Italian man indicted for of operating so-called pill mills, and a Tennessee resident who’s serving 10 years for possessing fentanyl with an intent to distribute. Furthermore, the US Food and Drug Administration is cracking down on websites like “AnonShop,” “Remedy Mart,” “TramadolHub” and “One Stop Pharma” that are illegally selling opioids.

Endo Begins Shipping USP in the US

Another spike came after July 2, when one of ENDO’s operating companies, Par Pharmaceutical, Inc. (Par), began shipping an authorized generic version of Takeda Pharmaceutical’s Colcrys® (colchicine, USP) 0.6 mg tablets. This tablet is indicated for prophylaxis and treatment of gout flares in adults and familial Mediterranean fever (FMF) in adults and children 4 years or older.

Endo is the Exclusive Distributor for Pitolisant in Canada

Endo also announced on July 25th that its subsidiary, Endo Ventures Limited has entered into definitive agreements with Bioprojet SCR to register, commercialize, and distribute pitolisant on an exclusive basis in Canada. Endo’s operating company, Paladin Labs Inc., will be commercializing pitolisant in Canada while Bioprojet will be responsible for supplying the drug to Paladin. The new revenue line continues to bring more revenue to Endo.

On June 26th, I Know First AI Algorithm gave a bullish 1 month forecast on Endo International plc (NASDAQ: ENDP). The Forecast shows a signal of 5.18 and a predictability of 0.36. In agreement with the forecast, ENDP has returned 30.67% over the one month period, demonstrating the accuracy of the I Know First Algorithm.

This is the second month ENDP stocks has successfully risen since our June forecast. Read the June analysis here.

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