Facing thousands of opioid lawsuits, Endo says he’ll likely file for bankruptcy ‘imminent’ – Endpoints News

Endo International will likely be the next pharmaceutical company to file for bankruptcy in a mountain of opioid lawsuits.

The Dublin, Ireland-based company disclosed in its second-quarter results on Tuesday that it was in talks with preferred creditors and that “these negotiations will likely result in a prearranged filing under Chapter 11 of the U.S. Bankruptcy Code by Endo International plc and substantially all of its subsidiaries, which may occur imminently.”

The announcement comes about a month after unnamed sources hinted at a bankruptcy filing, according to the The Wall Street Journal, who broke the news first.

It remains unclear whether the Chapter 11 filing will come before Endo has reached a settlement with plaintiffs in thousands of ongoing lawsuits over its former opioid painkiller Opana ER, though the company noted in a filing 10 -Q that she was in talks with the plaintiffs.

Endo did not respond to a request for comment at press time.

Opana ER was first approved in 2006, and six years later Endo introduced a reformulated version intended to prevent physical or chemical manipulation for improper purposes. However, an FDA advisory panel voted 18 to 8 in 2017 that the drug’s benefits no longer outweighed the risks, as post-marketing data showed a “significant change in the pathway of abuse.” The drug was pulled from the market that year at the request of the FDA, and Endo now faces thousands of lawsuits against it.

The Irish company has settled some claims, including a handful earlier this year in which it agreed to pay out $65 million in Florida, $26 in West Virginia, $7.5 million in Louisiana, $9.75 million in dollars in Arkansas and $9 million in Mississippi. However, most lawsuits remain unsolved.

Meanwhile, Endo disclosed in an SEC filing in June that he missed $38 million in interest payments. Although the company repaid that interest before the end of the 30-day grace period, it has since missed interest payments of approximately $2 million due July 15, $45 million due July 31 and 1 million due August 1.

“We have chosen to enter into these grace periods while continuing discussions with certain creditors as part of our evaluation of strategic alternatives. Our decision to enter these grace periods was not driven by liquidity constraints, as we had approximately $1.19 billion in cash as of June 30, 2022,” the company said in its 10- Q.

Endo wouldn’t be the first pharmaceutical company to file for bankruptcy to escape mounting opioid-related claims. Oxycontin maker Purdue Pharma and Mallinckrodt have also submitted Chapter 11 filings in recent years.

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