Endo International (NASDAQ:ENDP) is up 15% at 3:17 p.m. EDT after the drugmaker announced that Paul Campanelli is taking over as president and CEO.
Campanelli, who was previously the president of Par Pharmaceuticals -- Endo's generic and OTC drugs business -- takes over for Rajiv De Silva. Campanelli was CEO of Par Pharmaceuticals before Endo acquired the company, so he has experience at the top.
Of course, this isn't so much an endorsement of Campanelli as a sign that investors weren't happy with the performance of Endo under De Silva's leadership. Shares are down 69% over the last year.
In addition to announcing the leadership change, Endo also reaffirmed its guidance of third quarter revenues between $830 million and $870 million and adjusted earnings between $0.77 and $0.82 per share. With just seven days left in the quarter, Endo should have a good idea where the top and bottom lines of the earnings report will fall. The company also reaffirmed its full-year guidance.
While meeting guidance is always nice, keep in mind that management lowered the bar in May, cutting full-year revenue guidance by 11% from its former high-end guidance and adjusted earnings per share guidance by 23%.
Campanelli isn't going to be able to turn Endo around overnight, but it seems reasonable that the shakeup makes the company worth a little more today.