Irish generic pharmaceuticals firm Endo International (NASDAQ:ENDP) has taken its investors on a roller coaster ride over the past week. Today, ENDP stock is swinging to the upside. However, disappointing clinical results and a delisting threat from the Nasdaq exchange might deter some cautious folks from jumping into the trade now.
Suffice it to say that Endo International has had a whole lot of interesting developments lately. For one thing, the company’s shares rose more than 90% six days ago in the wake of the Supreme Court’s overturning of Roe v. Wade. Both Endo International and its subsidiary business, Par Pharmaceutical, are known for developing and commercializing some products related to women’s health.
In the wake of the Supreme Court’s ruling, Americans have been rushing to procure contraceptives. Evidently, traders decided that this is bullish for ENDP stock.
However, two days later, it was reported that Endo missed a $38 million interest payment on its debt. The company’s shares lost 20% of their value as a result of this. Chris MacDonald observed, though, that: “While the company reportedly has $1.4 billion in liquidity, this sort of relatively small amount of interest would be expected to be paid in due course.”
ENDP Stock Rises Despite Delisting Threat
But wait — there’s much more. Just recently, Endo International announced the top-line results of its Phase II study for a proposed treatment of adhesive capsulitis of the shoulder, a condition commonly known as “frozen shoulder.” The results were apparently disappointing, as they weren’t significantly different from taking a placebo.
In case all of that weren’t enough, today it was reported that Endo International has received a potential delisting warning/threat from the Nasdaq exchange. Reportedly, Endo hasn’t been in compliance with the exchange’s $1 minimum bid price requirement. Moreover, Endo apparently has until Dec. 28, 2022, to regain compliance with this requirement. To achieve this, ENDP stock must reach or exceed $1 for at least 10 consecutive business days.
So, why is the Endo share price rising despite the delisting warning? Most likely, it’s an aftereffect of the Supreme Court ruling. The delisting warning wasn’t really a big surprise, to be honest. After all, everyone can see that the stock has been trading below $1 for a while.
Thus, today Endo’s traders are in a good mood. Tomorrow could be a different story entirely, of course, as volatility is the name of the game with Endo International.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
