Endo Health Gains After Naming Rajiv De Silva New CEODrew Armstrong
Endo Health Solutions Inc., the maker of the painkiller Percocet, rose the most in almost a month after naming Rajiv De Silva as the company’s new chief executive officer.
Endo’s shares gained 7.9 percent to $30.26 at the close in New York, the biggest one-day increase since Jan. 30. De Silva, 46, previously served as president of Valeant Pharmaceuticals International Inc. and will take over on March 18. David Holveck, the current CEO of Chadds Ford, Pennsylvania-based Endo, said in December that he would retire.
“Today’s announcement is another key step forward that will enable us to build on Endo’s strong foundation,” Endo Chairman Roger Kimmel said in a statement announcing the appointment.
De Silva takes over as the company has reportedly been in talks to sell itself. In December, Endo said fourth-quarter results would be “at or below” the low end of its forecast of $5 a share to $5.10 a share and it “no longer expects to achieve” revenue of $3 billion to $3.2 billion in 2013. Endo is scheduled to report earnings on Feb. 28.
The company had disruptions in its supply of the Opana ER painkiller, Endo’s second-biggest product, reducing its sales in the third quarter. Endo also is preparing for generic competition to its top-seller Lidoderm in September 2013.