For the past three months, ENDP has been vacillating between a range of $20-25, down from a September, 2007 high of $31.50. The tepid stock performance reflects an ongoing fear that another company will obtain FDA approval for a generic version of Endo's Lidoderm.
The biggest company news in September was the sudden announcement of the resignation of the CFO, Charles Rowland. Since then, the stock price has continued its slow but steady decline. On September 29, 2008, the stock dipped below $20 for the first time since 2005.
Impax Pharmaceuticals has challenged Endo Pharmaceuticals’ patent for its painkiller Opana. It is expected that the company’s patent on Lidoderm will also be challenged. This will result in generic competition for the company’s primary growth drivers. As a result, Jefferies & Co downgraded the stock to ‘Hold’ from ‘Buy’ and reduced the price target to $31 from $37.