Endo International PLC on Monday reported better-than-expected
adjusted earnings in its second quarter, as the company's sales
received a boost from recent acquisitions, though discontinued
operations hurt its bottom line.
Endo, which relocated to Ireland from Pennsylvania, is one of
several drug companies lately using their lower-tax foreign
addresses as springboards for acquisitions in the U.S., which has
one of the world's highest corporate tax rates.
In the past two years alone, Endo, along with bigger rivals
Allergan PLC and Valeant Pharmaceuticals International Inc., have
struck more than $125 billion in takeover deals.
"Looking ahead to the second half of 2015 and beyond, we are
focused on accelerating growth in our current U.S. branded
pharmaceuticals portfolio and continue to expect that our strategic
M&A and pipeline development efforts will yield future growth
drivers," said Rajiv De Silva, President and CEO of Endo.
In January, Endo closed its $2.6 billion purchase of Auxilium
Pharmaceuticals Inc., a transaction that followed deals to buy Boca
Pharmacal and DAVA Pharmaceuticals. The latter deals have powered
Endo's generic-drug segment, whose revenue jumped 24% in the latest
quarter.
And in May, Endo agreed to buy rival drug maker Par
Pharmaceutical Holdings Inc. for $8 billion. The acquisition is
slated to add nearly 100 products, including a number of more
expensive injectable medicines, to Endo's portfolio of more than
700 generic medicines.
Endo reported a second-quarter loss of $250.4 million, or $1.35
a share, compared with earnings of $21.2 million, or 13 cents a
share, a year earlier. Results in the most recent quarter included
$159.6 million of losses from discontinued operations.
Excluding items such as acquisition costs and impairment
charges, Endo's adjusted earnings from continuing operations rose
to $1.08 a share from 89 cents a share a year earlier. Revenue
increased 24% to $735 million.
Analysts had expected earnings of $1.02 a share on revenue of
$727 million.
Endo's U.S. generics sales totaled $338 million in the quarter.
Growth benefited from the August 2014 acquisition of Dava and
increased sales of the generic version of Lidoderm, which launched
in May 2014.
U.S. Branded pharmaceutical sales jumped 27% to $316 million,
mainly due to the Auxilium deal. Revenue in Endo's international
pharmaceutical segment rose to $81 million from $72 million.
Endo affirmed its full-year guidance for adjusted earnings of
$4.40 to $4.60 a share on revenue of $2.9 billion to $3
billion.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
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