Winning Stock Forecast: ENDP Returns up to 39.05% in 1 Month as Powerful Agreements Pan Out

“Medicine is the science of uncertainty and an art of probability”

-William Osler

(Source: Pixabay)

Endo International plc is a generics and specialty branded pharmaceutical company. Incorporated on October 31, 2013, the company has three segments: U.S. Generic Pharmaceuticals, U.S. Branded Pharmaceuticals, and International Pharmaceuticals. The company has brands in the U.S. and abroad, including Canada and Latin America.

On June 8, I Know First gave a bullish one month forecast for ENDP. Over that one month period, the stock returned up to 39.05%.

ENDP Price (Source: Yahoo Finance)

Why were ENDP returns so high after the I Know First bullish forecast? There are a three main reasons:

Settlement Agreement

On June 11th, Endo announced a master settlement agreement. The agreement allowed for the resolution of testosterone replacement therapy product liability claims against the company, which were made up of over 1200 lawsuits. In exchange for this, the company was required to make a one-time deposit into a settlement fund. The Executive Vice President for Endo stated, “We are very pleased with today’s announcement.  We believe the master settlement agreement allowing for resolution of all known testosterone replacement therapy product liability claims against Endo marks another important achievement for the Company to deliver on its multiyear turnaround strategy”. Following this news, stock was up 6%.

Citi Upgrade

On June 27th, Citi’s analyst Liav Abraham upgraded Endo from Neutral to Buy. Along with this, he rose the price target for the stock from $7 to $11. The analyst cited multiple causes for this upgrade. First and foremost, Endu is becoming the exclusive distributor of Somerset’s glycopyrrolate injection and it’s expected to see more growth than previously expected. Secondly, Citi is anticipated there to be heavy delays for Endu’s competitors for the first half of 2018. Citi also believes that Endo’s CCH cellulite represents huge opportunity. The belief is that Endu will be able to target an unmet, widespread condition. Since Phase 2b for trials were “compelling”, Citi sees great hope.

The Gout Fix

On July 2, Endo announced that it has begun shipping an authorized generic version of Takeda Pharmaceutical’s Colcrys to the U.S. The drug helps gout flares and can be used by both adults and children. This deal is exclusive for US supply and distribution and is in agreement with Takeda Pharmaceuticals. Stock price hiked 4.36% following this news.

On June 8th, I Know First AI Algorithm gave a bullish 1 month forecast on Endo International plc (NASDAQ: ENDP). The Forecast shows a signal of 82.24 and a predictability of 0.33. In agreement with the forecast, ENDP has returned 39.05% over the one month period, demonstrating the accuracy of the I Know First Algorithm.

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