Endo Pharmaceuticals Provides Financial Guidance For 2006

CHADDS FORD, Pa., Jan. 9 /PRNewswire-FirstCall/ -- Endo Pharmaceuticals Holdings Inc. , a market leader in pain management, today provided financial guidance for fiscal year 2006.

Endo’s 2006 guidance does not reflect the launch of its oxymorphone extended-release (ER) or immediate-release (IR) tablets but does reflect pre-launch marketing and education-related expenses associated with these products. Additionally, it includes the expected second-half 2006 launch of Synera(TM), its topical local anesthetic patch, the licensing of which was announced earlier today.

Endo expects net sales in 2006 to be approximately $860 to $880 million. The company expects Lidoderm(R) to continue to grow in 2006 and is estimating 2006 net sales of this product to be approximately $530 to $540 million. The company expects its overall gross profit margin for the full-year 2006 to decline slightly from 2005.

Including its investments in oxymorphone and other investments as outlined below, the company estimates adjusted earnings for the year ended December 31, 2006 to be approximately $1.75 to $1.80 per share, which excludes estimated payments to partners for successful achievement of regulatory milestones and excludes stock compensation charges. Of course, there can be no assurance of Endo achieving these results.

During 2006, Endo anticipates increasing its investment over 2005 levels in educational and promotional efforts and overall support of its business. In addition, excluding milestone payments to partners, the company anticipates increasing its research and development spending in 2006 compared with 2005. During 2006, Endo will focus its development efforts on various projects primarily focused in the area of pain management, including the recently initiated Phase III clinical studies of its development product Rapinyl(TM) and the initiation of Phase III clinical trials of its topical ketoprofen patch and further clinical development of its transdermal sufentanil patch.

The above guidance excludes non-recurring items and the potential impact of other components of the company’s strategy, including possible future acquisitions or licensing opportunities.

Note to Investors

Endo will conduct a conference call with financial analysts to discuss this news release today at 5:00 p.m. ET. Investors and other interested parties may access the conference call by dialing (800) 305-2862 (domestic/Canada) or (706) 634-1979 (international). Please dial in 10 minutes prior to the scheduled start time. A replay of the call will be available from January 9, 2006 at 7:00 p.m. ET by dialing (800) 642-1687 (domestic/Canada) or (706) 645-9291 (international), passcode 4156450, and will run until 12:00 a.m. ET on January 16, 2006.

A simultaneous webcast of the call for interested investors and others may be accessed by visiting http://www.endo.com. In addition, a replay of the webcast will be available until 12:00 a.m. ET on January 16, 2006. The replay can be accessed by clicking on “Events” in the Investor Relations section of the web site.

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 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 http://www.endo.com.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management’s beliefs and assumptions, current expectations, estimates and projections. Statements that are not historical facts, including statements which are preceded by, followed by, or that include, the words “believes,” “anticipates,” “plans,” “expects” or similar expressions and statements are forward-looking statements. Endo’s estimated or anticipated future results, product performance or other non-historical facts are forward-looking and reflect Endo’s current perspective on existing trends and information. Many of the factors that will determine the Company’s future results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and, therefore, actual results may differ materially from those expressed or implied by these forward-looking statements. The reader should not rely on any forward-looking statement. The Company undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Several important factors, in addition to the specific factors discussed in connection with these forward-looking statements individually, could affect the future results of Endo and could cause those results to differ materially from those expressed in the forward-looking statements contained in this press release. Important factors that may affect future results include, but are not limited to: market acceptance of the Company’s products and the impact of competitive products and pricing; dependence on sole source suppliers; the success of the Company’s product development activities and the timeliness with which regulatory authorizations and product launches may be achieved; successful compliance with extensive, costly, complex and evolving governmental regulations and restrictions; the availability on commercially reasonable terms of raw materials and other third party manufactured products; exposure to product liability and other lawsuits and contingencies; dependence on third party suppliers, distributors and collaboration partners; the ability to timely and cost effectively integrate acquisitions; uncertainty associated with pre-clinical studies and clinical trials and regulatory approval; uncertainty of market acceptance of new products; the difficulty of predicting FDA approvals; risks with respect to technology and product development; the effect of competing products and prices; uncertainties regarding intellectual property protection; uncertainties as to the outcome of litigation; changes in operating results; impact of competitive products and pricing; product development; changes in laws and regulations; customer demand; possible future litigation; availability of future financing and reimbursement policies of government and private health insurers and others; and other risks and uncertainties detailed in Endo’s filings with the Securities and Exchange Commission, including its Registration Statement on Form S-3 filed with the SEC on April 30, 2004, as amended and in Endo’s Registration Statement on Form S-3 filed with the SEC on September 2, 2005, as amended . Readers should evaluate any statement in light of these important factors.

CONTACT: Bill Newbould Endo Pharmaceuticals (610) 558-9800

Endo Pharmaceuticals Holdings Inc.

CONTACT: Bill Newbould of Endo Pharmaceuticals, +1-610-558-9800

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