PHILADELPHIA _ Shares of Endo International soared Friday after the drugmaker named Paul V. Campanelli as president and CEO, effective immediately. The company, with U.S. headquarters outside Philadelphia, also said Rajiv De Silva had stepped down as chief executive officer and a board member.
Endo shares rose $3.13, up 15.45 percent, to close at $23.39.
Campanelli, 54, was formerly CEO of Par Pharmaceutical, which Endo bought last year. Campanelli became president of Endo's generic and over-the-counter drugs business after the $8 billion acquisition of Par closed. The generic and OTC business generated 60 percent of Endo's total revenues in the first half of this year.
"The board is very confident that Paul is the right choice to lead Endo moving forward as we focus on operational execution, increasing the value of our attractive U.S. branded, U.S. generic, and international pharmaceutical assets," chairman Roger Kimmel said.
Endo is looking for branded and generic deals, the new CEO said on an investor call: "We've got a team, and they're out there pursuing opportunities both on the brand and generic side."
Campanelli said company leaders would assess "all our teams" and divisions. "If there are areas that we need to improve on, we have to make certain tough decisions," he said.
Naming the generics head to lead the company "is a logical step," Susquehanna Financial Group analyst Andrew Finkelstein wrote in a client note. De Silva, a former senior executive at Valeant Pharmaceuticals, remade Endo through acquisitions and increased the focus on generics, "which have become more of the growth engine," Finkelstein said. "We are optimistic about the leadership move and look for insights on how he will adapt the company's hybrid strategy to best manage through challenges."
Endo shares have had a rocky 12 months, going from a high of $72.40 on Sept. 24, 2015, to a low of $13.45 on May 12.
Separately, Endo affirmed its third-quarter adjusted earnings-per-share outlook of 77 cents to 82 cents and its revenue outlook of $830 million to $870 million. Endo said full-year 2016 revenue would be between $3.87 billion and $4.03 billion.
Endo reported a $389.8 million profit in the second quarter this year, and a $133.9 million loss in the first quarter. It said in May that it would restructure its generic medicines manufacturing business, and cut 740 employees in Charlotte, N.C., and Huntsville, Ala.
Endo employs 350 at its U.S. headquarters and 6,000 worldwide.
"With an international footprint, one year after the acquisition of Par, and with a new president at the helm of our U.S. branded business, the time is right for me to move on to new professional opportunities," De Silva said in a statement.
