Shares of Endo International (ENDP 1.39%) were crashing 28.6% lower as of 11:07 a.m. EDT on Friday. The big decline came after The Wall Street Journal reported that the drugmaker has engaged Alvarez & Marsal to look into a potential financial restructuring.
The report of a potential restructuring is only the latest of woes Endo has faced related to a flood of opioid-related lawsuits. The pharmaceutical stock had already plunged 66% year to date before today's drop.
Endo hasn't confirmed that it hired a financial restructuring advisor. However, The Wall Street Journal stated that "people familiar with the matter" said the drugmaker brought in Alvarez & Marsal to explore options for reducing the company's litigation-related liabilities and its debt load of more than $8 billion.
Financial restructuring can be achieved in several ways. Sometimes, parts of the business are sold off. However, some companies end up filing for bankruptcy and reorganizing.
It remains to be seen if Endo is indeed considering undergoing a financial restructuring. However, this stock has been one to stay away from for a long time. Today's news underscores why that's a prudent move.