ENDP stock is one of the biggest health stock gainers this week, with a surge of over 50% since Tuesday. Let’s analyze the key reasons behind the sudden surge in Endo International (NASDAQ:ENDP).
Sudden Interest on Speculation
The opioid crisis has been one of the most problematic issues in the United States in recent years, and now many companies are being forced to pay damages for their role in the whole thing. Many of the biggest pharmaceutical companies have had to pay billions in settlements in recent months.
In a new development, a lot of speculation has emerged that Endo International could be on the verge of reaching a settlement with regards to a slew of opioid-related lawsuits. The news emerged on Wednesday this week, and soon, ENDP stock started climbing as investors piled in. It rose by as much as 19% on Wednesday alone.
While it is true that many other companies have to pay billions in settlements, a reasonable settlement could be a huge boost for Endo International. In addition to these lawsuits, Endo has already settled two other opioid-related lawsuits in Ohio, and if the speculation proves to be correct, then it could be a major development.
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That being said, it should be noted that at the end of the day, these are all speculations, and it is advisable for investors not to get too excited about the whole thing.
At the time of writing, ENDP stock is up 4% at $5.03.
However, it is also important to note that if the company does manage to reach a settlement, then there is every possibility that Endo stock will gain significantly as well.
Back in September, Endo International ended two litigations with regards to vasopressin compounding in its products. The litigations ended on September 30, and the stock rebounded considerably following the development.
Hence, it is quite clear that if the opioid lawsuits are indeed settled, then investors could see the stock making gains. At this point in time, it would be advisable for investors to keep an eye on ENDP stock and also for associated news regarding the settlement, if any.
Featured image: DepositPhotos © AntonMatyukha
