Additionally, declining overall volumes have a resulted in destocking of the product, which we expect will likely have a material impact in the second quarter and is likely to persist for a prolonged period. Several alternative products to Vasostrict have launched since the beginning of the year, which is resulting in significant price erosion on the product. Our downgrade of Endo reflects weakening credit metrics over the next 12 months resulting from increased competition and lower demand on the company's Vasostrict product. The negative outlook also reflects our view that deteriorating cash flow generation over the next couple of years and potential liabilities associated with its opioid litigation, result in a current capital structure that is unsustainable. The negative outlook reflects the probability of a distressed exchange or below par redemption of its debt well within the next 12 months.We also lowered our rating on the second-lien term loan and unsecured notes to 'CC' from 'CCC-'. At the same time, we lowered our issue-level rating to 'CCC' from 'B-' and we revised our recovery rating on Endo's first-lien term loan to '3' from '2'.As a result, we lowered our long-term issuer credit rating on Endo to 'CCC' from 'CCC+'. In our view, weaker cash flow prospects combined with the company's high debt levels and ongoing uncertainty regarding opioid litigation, increase the likelihood of a distressed exchange offer or below par redemption within the next 12 months.Endo International PLC recently provided guidance for the second quarter of 2022 that was well below what we expected stemming from significant competition on Vasostrict that we assume will result in significantly lower free operating cash flow generation over the next couple of years.
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