Endo Pharmaceuticals Signs Inventory Management Agreement With Major Wholesaler
CHADDS FORD, Pa., Oct. 2 /PRNewswire-FirstCall/ -- Endo Pharmaceuticals Holdings Inc. , a market leader in pain management, today announced that its wholly owned subsidiary, Endo Pharmaceuticals Inc., has signed an inventory management agreement (IMA) during the third quarter of 2006 with one of its three largest wholesale drug distribution customers. As expected, in anticipation of finalizing this IMA, this customer began reducing its inventory levels of Lidoderm(R) (lidocaine patch 5%) in the quarter. As a result of this major customer's inventory de-stocking, net sales of Lidoderm, Endo's largest-selling product, are expected to be below underlying demand for the three months ended September 30, 2006.
"This represents the second such agreement that Endo has in place with a major wholesaler, in addition to an IMA with a regional drug wholesaler," said Peter A. Lankau, President and Chief Executive Officer. "The benefits we derive from these agreements include better channel inventory planning and data management services. Similar to the phenomenon that we experienced with another major wholesaler when we signed our first IMA in late 2004, inventory at this customer has trended toward historically low levels. Underlying demand for Lidoderm, however, continues to show strong year-over-year prescription growth in the 20%-plus range, and we estimate the quarterly run rate for Lidoderm to be approximately $145-$150 million. Thus, we continue to expect that, as previously communicated, net sales of Lidoderm for 2006 will be at the high end of our estimated range of $530-$540 million, which had included the impact of inventory de-stocking in anticipation of an IMA."
Lankau also noted that 2006 third quarter results would reflect a somewhat slower than expected uptake of Opana ER (oxymorphone HCl) extended-release and Opana(R) (oxymorphone HCl) immediate-release tablets CII. Both formulations began shipping into the trade in late July and August. As previously disclosed, Endo's guidance for Opana ER and Opana is $20-$30 million in net sales for 2006. "We are encouraged by the recent upward trend in Opana prescriptions, which indicates to us that our marketing and promotional efforts are beginning to have the desired effect." He added that Endo's 590 sales representatives recently have begun detailing physicians with a full set of marketing materials.
About Endo
Endo Pharmaceuticals Holdings Inc. is a fully integrated specialty pharmaceutical company with market leadership in pain management products. Through its Endo Pharmaceuticals Inc. subsidiary, the company researches, develops, produces and markets a broad product offering of both branded and generic pharmaceuticals, meeting the needs of healthcare professionals and consumers alike. More information, including this and past press releases of Endo Pharmaceuticals Holdings Inc., is available online at www.endo.com.
Forward-Looking Statements
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Endo Pharmaceuticals Holdings Inc.CONTACT: Bill Newbould of Endo Pharmaceuticals Holdings Inc.,+1-610-558-9800
Web site: http://www.endo.com/