In this post I analyzed one interesting biotech Endo International.
Endo is a global pharmaceutical corporation headquartered in Dublin (legal) and Malvern, PA (operating). It was created in 1997 on a joint basis with DuPont Merck. Among the areas of drug development: immunotherapy, dermatology, infectious diseases, insomnia, orthopedics, urology, cellulite, oncology, endocrinology. The company also manufactures pain relievers and equipment needed to diagnose various diseases. Revenue for 2020 is $ 2.9 billion, profit is $ 0.25 million. Capitalization is $ 1.4 billion. Employees 3172.
The company's business is represented by 4 areas:
1. Endo Pharmaceuticals develops unique products from scratch. At the moment, this direction has 16 commercial drugs. There are only 2 drugs in development.
2. Par Pharmaceuticals produces generic (copies) pharmaceuticals. This company was acquired by the American company Endo Pharmaceuticals in 2015 for $ 8.05 billion. This deal allowed Endo to become one of the five largest manufacturers of generics in the United States. Par Pharmaceuticals manufactures about 140 drugs.
3. Endo Aesthetics develops solutions for the treatment of cellulite.
4. Paladin Labs specializes in the acquisition and licensing of new pharmaceutical products for the Canadian market, and also manufactures products for the treatment of allergies, urological and dermatological diseases, diseases of the central nervous system and women's health. The company was acquired by Endo Pharmaceuticals in 2013 for $ 1.6 billion to gain access to the Canadian market and expand into emerging markets.
Endo reached its peak value in 2015, then $ 90 was given per share. This was followed by a collapse in prices amid accusations of the "opioid epidemic" that began in the United States in the late 90s and lasted until 2016. This term refers to a large number of abuse and fatal overdoses of drugs that contain opiates.
Authorities estimate that more than 450,000 Americans have died from opioids in 17 years. Purdue Pharma was identified as the main culprit. However, lawsuits were brought against other corporations as well. Endo has been identified as one of the culprits in the epidemic in 3 states: Ohio, Missouri and Mississippi. In 2016, most of the company's revenues were generated precisely from the sale of opioid-based painkillers.
On November 2, an Orange County Supreme Court judge issued a preliminary ruling that relieves the company of responsibility for fueling the opioid epidemic in the United States. On this day, quotes added almost 10%.
In 2020, Endo, for the first time in many years, made a profit of $ 184 million. Prior to that, for several years in a row, it managed to reduce losses, which in 2017 exceeded $ 2 billion. In general, the company's revenue is stagnating, the company is teetering on the brink of break-even.
An interesting fact: the company for 30 quarters in a row manages to show financial indicators better than analysts' forecasts (in the pharmaceutical industry this is rarely seen).
On November 4, the report for the third quarter was released. The published figures significantly exceeded analysts' estimates. On November 5, quotes added 25%.
🔧In terms of technique, the graph looks towards the short:
1) The price approached a strong weekly level.
2) Closing of the daily and weekly candles near the level and under the very LOW.
3) The price has broken the local level of $ 6.24
4) There is a large power reserve at the bottom.
5) Pulling the local maximum to the level, they are not allowed to go up.
6) Accumulation before the level.
7) Parabolic rounding.
8) Recoilless movement over 250%.
Breakout of the local level $ 6.14
The price is likely to consolidate in the $ 6.15 - $ 6.50 channel with false breakouts of the support level before starting a correction. Be careful.
Goal 1: $ 5.3
Target 2 (risk): $ 3.5 (more than 40% of the movement)
NOT IRR.
Endo is a global pharmaceutical corporation headquartered in Dublin (legal) and Malvern, PA (operating). It was created in 1997 on a joint basis with DuPont Merck. Among the areas of drug development: immunotherapy, dermatology, infectious diseases, insomnia, orthopedics, urology, cellulite, oncology, endocrinology. The company also manufactures pain relievers and equipment needed to diagnose various diseases. Revenue for 2020 is $ 2.9 billion, profit is $ 0.25 million. Capitalization is $ 1.4 billion. Employees 3172.
The company's business is represented by 4 areas:
1. Endo Pharmaceuticals develops unique products from scratch. At the moment, this direction has 16 commercial drugs. There are only 2 drugs in development.
2. Par Pharmaceuticals produces generic (copies) pharmaceuticals. This company was acquired by the American company Endo Pharmaceuticals in 2015 for $ 8.05 billion. This deal allowed Endo to become one of the five largest manufacturers of generics in the United States. Par Pharmaceuticals manufactures about 140 drugs.
3. Endo Aesthetics develops solutions for the treatment of cellulite.
4. Paladin Labs specializes in the acquisition and licensing of new pharmaceutical products for the Canadian market, and also manufactures products for the treatment of allergies, urological and dermatological diseases, diseases of the central nervous system and women's health. The company was acquired by Endo Pharmaceuticals in 2013 for $ 1.6 billion to gain access to the Canadian market and expand into emerging markets.
Endo reached its peak value in 2015, then $ 90 was given per share. This was followed by a collapse in prices amid accusations of the "opioid epidemic" that began in the United States in the late 90s and lasted until 2016. This term refers to a large number of abuse and fatal overdoses of drugs that contain opiates.
Authorities estimate that more than 450,000 Americans have died from opioids in 17 years. Purdue Pharma was identified as the main culprit. However, lawsuits were brought against other corporations as well. Endo has been identified as one of the culprits in the epidemic in 3 states: Ohio, Missouri and Mississippi. In 2016, most of the company's revenues were generated precisely from the sale of opioid-based painkillers.
On November 2, an Orange County Supreme Court judge issued a preliminary ruling that relieves the company of responsibility for fueling the opioid epidemic in the United States. On this day, quotes added almost 10%.
In 2020, Endo, for the first time in many years, made a profit of $ 184 million. Prior to that, for several years in a row, it managed to reduce losses, which in 2017 exceeded $ 2 billion. In general, the company's revenue is stagnating, the company is teetering on the brink of break-even.
An interesting fact: the company for 30 quarters in a row manages to show financial indicators better than analysts' forecasts (in the pharmaceutical industry this is rarely seen).
On November 4, the report for the third quarter was released. The published figures significantly exceeded analysts' estimates. On November 5, quotes added 25%.
🔧In terms of technique, the graph looks towards the short:
1) The price approached a strong weekly level.
2) Closing of the daily and weekly candles near the level and under the very LOW.
3) The price has broken the local level of $ 6.24
4) There is a large power reserve at the bottom.
5) Pulling the local maximum to the level, they are not allowed to go up.
6) Accumulation before the level.
7) Parabolic rounding.
8) Recoilless movement over 250%.
Breakout of the local level $ 6.14
The price is likely to consolidate in the $ 6.15 - $ 6.50 channel with false breakouts of the support level before starting a correction. Be careful.
Goal 1: $ 5.3
Target 2 (risk): $ 3.5 (more than 40% of the movement)
NOT IRR.