RE:Big Pharma has compelling valuations & ‘ROOM to RUN’This big pharma may have to raise cash.
Endo crashes 27% after missing interest payment Endo International (NASDAQ:ENDP) dropped ~27% in the pre-market Thursday after the generic drugmaker said it decided not to pay an interest payment of nearly $38M due on June 30 which relates to the company’s outstanding 6.00% Senior Notes due 2028.
The nonpayment of interest is not considered an event of default, yet, Endo (ENDP) said, noting a 30-day grace period to make the payment according to terms of its Senior Notes.
Endo (ENDP) has opted to enter the grace period as the company continues talks with certain creditors regarding its decision to evaluate strategic alternatives.
Noting that the company had nearly $1.4N in cash as of March, the company said that the nonpayment of interest did not indicate liquidity issues and the decision would not have any impact in its day to day functions.