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Endo (ENDP) Settles Disputes with Federal Trade Commission

Endo International plcENDP announced that it has resolved all disputes with the U.S. Federal Trade Commission (FTC).

Shares of Endo have underperformed the Zacks classified industry in the past one year. Specifically, the stock plunged 79.0% during this period, in comparison to a decline of 1.7% for the industry.

Shares of Endo have underperformed the Zacks classified Medical-Drugs industry in the past one year. Specifically, the stock plunged 79.0% during this period, in comparison to a decline of 1.7% for the industry.

Coming back to the latest news, both Endo and the FTC have filed a joint motion in the U.S. District Court for the Northern District of California, seeking the entry of a ten-year Stipulated Order for Permanent Injunction.

This order resolves all disputes between the FTC and Endo relating to the patent infringement settlements entered by Endo pertaining to Opana ER and Lidoderm products. In addition, the order also resolves the FTC's claims against Endo's subsidiary Par Pharmaceutical Companies, Inc.

We remind investors that FTC first asserted claims against Endo and certain generics manufacturers relating to the Opana ER and Lidoderm patent settlements in Mar 2016. The FTC alleged that certain aspects of the Opana ER and Lidoderm settlements constituted unfair methods of competition in violation of federal law and sought injunctive and declaratory relief, as well as other remedies including restitution and disgorgement. The complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania.

Thereafter, the FTC voluntarily dismissed its lawsuit in Oct 2016 but stated its intention to refile elsewhere.

As per the Stipulated Order, Endo is not required to make any monetary payment to the FTC and will dismiss its claims in the declaratory judgment actions. The FTC has agreed that the prior dismissal of its claims against Endo in the U.S. District Court for the Eastern District of Pennsylvania will be treated as void. The FTC will not file any other claims against Endo related to the Opana ER and Lidoderm settlements.

Endo has also agreed to certain covenants relating to the future settlement of patent infringement litigation for a period of 10 years.

Endo currently carries a Zacks Rank #4 (Sell). We note that shares are under tremendous pressure due to concerns related to the ongoing investigations and the present focus on drug pricing. Concerns relating to pricing are expected to remain a major overhang on the company's shares. Moreover, estimates have gone down lately ahead of the company's fourth-quarter 2016 earnings results.

Endo International PLC Price and Consensus

Endo International PLC Price and Consensus | Endo International PLC Quote

Key Picks in the Sector

Some better-ranked stocks in the health care sector include Enzo Biochem, Inc. ENZ , Sunesis Pharmaceuticals, Inc. SNSS and Anika Therapeutics Inc. ANIK . While Sunesis and Anika sports a Zacks Rank #1 (Strong Buy), Enzo Biochem carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Enzo Biochem's loss estimates for 2017 narrowed 5.88% over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 22.50%. Its share price was up 47.9% in the past one year.

Sunesis' loss estimates narrowed 5.06% and 8.80% for 2016 and 2017, respectively, over the past 60 days. The company recorded a positive earnings surprise in three of the last four quarters, the average being 0.54%.

Anika's earnings estimates for 2016 and 2017 were up 3.9% and 0.5%, respectively, over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.1%. Its share price was up 37.2% in the past one year.

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Endo International PLC (ENDP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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