(Reuters) - Endo International Plc on Monday gave a glimpse of a quarter that could help ease investor concerns when it announced preliminary earnings well above market estimates, sending the generic-drug maker’s shares up as much as 18 percent.
The company, which has lost nearly two-thirds of its value this year through Friday’s close, recently pulled its opioid painkiller Opana ER from the market after U.S. regulators said its benefit did not outweigh public health risks associated with opioid abuse.
Last week, U.S. President Donald Trump declared the opioid crisis a public health emergency, prompting Endo’s stock to touch a near 15-year low on Friday.
“The way the stock has been trading, its been acting as if the company is in significant dire straits and nearing bankruptcy,” said Stifel Nicolaus and Co analyst Annabel Samimy.
“I think what (the preliminary results) does ... is to demonstrate that everything is as expected. And enough already.”
Endo and other drugmakers have been coping with stubbornly low generic-drug prices as U.S. retail pharmacies such as Walgreens Boots Alliance Inc wield more leverage during purchases, and regulators push for faster approval of drug copies.
RBC analyst Randall Stanicky said the profit number looked like it was supported by cost controls and that the positive announcement should help temper near-term concerns.
The company’s shares were up 3.8 percent in midday trading.
Endo on Monday said it expects to report adjusted earnings from continuing operations of about 85 cents per share for the quarter ended Sept. 30. Analysts on average were expecting 66 cents, according to Thomson Reuters I/B/E/S.
Endo expects revenue of $785 million for the quarter, down 12.6 percent from a year ago and matching analysts’ estimates.
The company also said it would “aggressively defend” its blood pressure drug Vasostrict from what it sees as unapproved bulk compounding, which allows mixing several drugs to make a tailored dose for individual patients.
Endo said two units filed a lawsuit on Thursday accusing the U.S. Food and Drug Administration of ignoring key components of a law passed after a deadly 2012 meningitis outbreak linked to a compounding pharmacy.
Reporting by Manas Mishra and Tamara Mathias in Bengaluru; Editing by Sai Sachin Ravikumar