As discussed here previously, the FTC approved Endo’s acquisition of Par Pharmaceuticals last Friday, making the $8Bn deal official. The acquisition is aligned with Endo’s strategy and makes a lot of sense in terms of amplifying the company’s product portfolio, presence in the generics space, and as a way to fuel future growth, or so believes its CEO.
Nonetheless, the public market seems to have a different opinion on the question. The stock ENDP 9.70 -0.15 -1.52% went down 10.20% today, the exact same day the acquisition was made official and Morgan Stanley downgraded the stock from Overweight to Equal-weight. Is it due to the confirmation of the Par acquisition or simply due to the revised revenue estimates and to the announcement that the Par acquisition would not have a significant positive impact in the immediate future.
TheStreet, nonetheless, sees some positive in Endo’s stock in that revenue growth has been consistently higher than industry average with a rather low debt-to-equity ratio.
Yes, public markets can be cruel sometimes…
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