Shares of Endo International PLC
soared 30% in active morning trading Tuesday, after the generic drug maker said it has reached a “settlement in principle” to resolve “track 1” opioid cases. Trading volume rose to over 7.6 million shares, already more than the full-day average of about 6 million shares. As part of the settlement, Endo will pay $10 million and provide up to $1 million of its Vasostrict and Adrenalin products free of charge. Endo said the settlement includes no admission of wrongdoing, fault or liability, and is based solely on the avoidance of litigation risk and associated costs. Endo said its subsidiaries involved in the settlement include Endo Pharmaceuticals Inc., Endo Health Solutions Inc., Par Pharmaceutical Inc. and Par Pharmaceuticals Companies Inc., while the plaintiffs are the County of Cuyahoga, Ohio and the County of Summit Ohio. “This is a favorable outcome for the Company,” said Endo Chief Legal Officer Matthew Maletta. “As context, the cash portion of the settlement approximates the estimated cost to Endo of proceeding through trial while the product portion of the settlement illustrates the importance of Endo’s critical care products.” The stock has still tumbled 55% year to date, while S&P 500
has gained 16%.
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