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Why Endo International Shares Are Jumping Today

By Keith Speights – Jul 7, 2020 at 10:39AM

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An FDA approval boosted the pharma stock.

What happened

Shares of Endo International (ENDP -5.47%) were jumping 5.7% higher as of 11:26 a.m. EDT on Tuesday after rising as much as 15.6% earlier in the day. The gain came following the drugmaker's announcement on Monday evening that the FDA approved Qwo for treating moderate to severe cellulite in the buttocks of adult women.

So what

Investors cheered the FDA approval of Qwo for good reason. The agency's thumbs-up for the cellulite treatment marked Endo's move into medical aesthetics, a potentially lucrative arena for the company.

Qwo bottles and packaging

Image source: Endo International. 

Qwo is the first injectable treatment for cellulite approved by the FDA. Cellulite is caused by multiple factors. One key contributing factor is fibrous septae -- connective tissues that connect skin to the fascia and cause dimpling. Qwo seems to work by releasing the fibrous septae and thereby smoothing the skin.

Endo included a statement from board-certified dermatologist Anne Chapas in its press release announcing the FDA approval of Qwo. Chapas said that the product "could be a game-changer for many women with cellulite." 

Now what

Don't expect Qwo to make a financial impact on the pharma stock anytime soon. Endo decided to delay its launch of the product until 2021 due to the COVID-19 pandemic. The company said that Qwo should be available in aesthetic healthcare practitioners' offices beginning next spring.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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