BMO cuts Endo's PT on weak Q2 forecast, scarce H2 visibility

Endo International

09/05/2022 20:28

** BMO Capital Markets cuts target price on drugmaker's
 ENDP.O  shares to $2 from $4, saying that ENDP provided weak Q2
guidance without sufficient visibility into H2 
    ** Says ENDP's blood pressure medicine Vasostrict, the
company's main product, is under pressure from generic
competition
    ** Adds that growth for Xiaflex, ENDP's drug to treat a
condition that causes painful erections and disease that hinder
finger movement, has slowed even though the drug remains a
"solid product" 
    ** Believes ENDP's cellulite treatment Qwo has bruising or
discoloration concerns, and the trajectory of its anti-smoking
treatment Varenicline also looks unclear
    ** BMO adds that opioid litigation remains a "big overhang",
 adding to ENDP's murky outlook
    ** All seven brokerages covering the stock rate it "hold" or
lower; their median PT is $1.50, reflecting a 5.6% potential
upside to Friday's close 
    ** Up to Friday's close, ENDP down 63.1% this year 

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))