Endo International CEO steps down; Campanelli named successor
(Reuters) - Endo International Plc <ENDP.O> said Chief Executive Rajiv De Silva had stepped down and would be replaced by generics division head Paul Campanelli, highlighting the drugmaker's shift away from specialty branded drugs.
Endo's shares rose as much as 16 percent to $23.48 on Friday as the company also maintained its profit and revenue forecasts for the year.
Campanelli joined Endo in 2015 following the company's $8-billion acquisition of generic drugs maker Par Pharmaceutical, where he was CEO since 2012.
At Endo, Campanelli headed the generic and OTC drugs business, which accounted for about 60 percent of the company's total revenue through the first half of 2016.
Under De Silva, a former senior executive at Valeant Pharmaceuticals International Inc <VRX.TO>, Endo embarked on a strategy of acquisition fueled growth, drawing comparisons with the Canadian drugmaker.
Valeant became a poster child for perceived flaws in the business model of specialty pharmaceutical companies as it came under intense scrutiny from politicians and regulators for its reliance on acquisitions and price hikes to juice growth.
Analysts said Campanelli's appointment highlighted the growing importance of the Endo's generics business.
"We are not surprised by this transition as De Silva's skill-set may not be helpful to the new direction of this company," Mizuho analyst Irina Koffler wrote in a note.
Up to Thursday's close, Endo's shares had lost about 67 percent this year - the worst performer on the S&P 500 Healthcare index <.SPXHC>.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty)
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