Endo International shares jumped on Friday after the pharmaceutical company behind drugs like Percocet and Opana named Paul Campanelli, the current head of its generics and over-the-counter drugs business as the new chief executive.
Shares in Endo rose 15.5 per cent to $23.39 in New York after the company said Rajiv De Silva, who has served at the helm since March 2014 and helped grow Endo’s overseas presence, was stepping down. Mr De Silva said “the time is right for me to move on to new professional opportunities”.
Mr Campanelli previously served as chief executive of Par Pharmaceutical and joined Endo after the company bought Par in 2015. Some analysts were unsurprised by Mr Campanelli’s appointment as Endo’s generic drug business is expected to account for about 65 per cent of its sales in 2017.
“He is well regarded by investors and is largely credited with salvaging Par Pharmaceuticals from a potentially ill-timed strategic sale in 2007-08 and orchestrating a climb up the generic value chain through a series of savvy product deals,” Elliot Wilbur, analyst at Raymond James, said.
“Endo’s generics business has been the primary trouble spot in a series of recent setbacks versus internal and external expectations, and while changing the quarterback in the second half doesn’t always ensure a come-from-behind victory, it will no doubt reinject some optimism back into the Endo story.”
Friday’s rally however belies a difficult year for Endo, which unveiled a massive cut to its full-year outlook in May, leaving it the biggest decliner on the S&P 500 so far in 2016 with shares down nearly 62 per cent.
Endo’s advance came alongside a sell-off in US stocks. At the close, the S&P 500 was down 0.6 per cent to 2,164.7, the Dow Jones Industrial Average had declined 0.7 per cent to 18,261.5. The Nasdaq Composite edged 0.6 per cent lower to 5,305.8.
Elsewhere, Twitter shares jumped 21.4 per cent to $22.62, after CNBC reported that the social media site known for its 140-character tweets was moving closer to a sale and that suitors included Salesforce and Google. Microsoft’s purchase of professional networking site LinkedIn has renewed speculation that Twitter could also find a buyer.
As of Thursday’s close, Twitter shares remained 28 per cent below the company’s IPO price of $26 as the company struggles to grow its user base. Salesforce was the second-biggest decliner on the S&P 500 on Friday, with its shares falling 5.6 per cent to $70.39.
Meanwhile, shares in Valvoline, a maker of motor oils and car lubricants earlier climbed as much as 11 per cent to $24.51 in its market debut. The company had priced its offering of 30m shares at $22 apiece on Thursday evening to raise $660m. It gave up some of those gains to close 5 per cent higher at $23.10.
Yahoo shares fell 3.1 per cent to $42.80 a day after the company said that data for at least 500m user accounts was stolen from the company’s network in late 2014. The internet group said it believed the hack was carried out by a “state-sponsored actor”.
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