S&P puts Endo International on watch

S&P said it placed all its Endo International plc ratings on CreditWatch with negative implications.

Endo should get the verdicts from its multibillion-dollar opioid-related trials in California and New York with six months. Additionally, it continues seeing settlements with thousands of plaintiffs from other states, cities, counties and municipalities.

“If Endo is judged to be liable in the opioid trials, we may view its capital structure as unsustainable due to the potential for a very large legal liability,” S&P said in a press release.

Furthermore, Endo could lose the exclusivity for its top product, Vasostrict (estimated at 30%-35% of its 2021 EBITDA), sooner than expected if its patents are invalided in the July 2021 trial.

“We plan to resolve the CreditWatch in the next three to four months when the outcomes of the Vasostrict patent trial and California opioid trial are announced (including a potential opioid-related settlement). We could also resolve the CreditWatch if we believe the likelihood of a distressed exchange has increased because of significantly weaker debt trading levels,” S&P said.

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