CHADDS FORD, Pa., Oct. 27, 2011 /PRNewswire/ --
- Total quarterly revenues of $759 million increase 71 percent versus prior year; branded pharmaceuticals revenues grow 17 Percent, reflecting strong performance of OPANA® ER, Voltaren® Gel and LIDODERM®;
- Reported quarterly diluted EPS of $0.34 versus $0.46 for prior year
- Adjusted diluted EPS of $1.25 reflecting growth of 45 percent from 2010
- Company reaffirms 2011 guidance for revenue of $2.72 to $2.80 billion and adjusted diluted EPS of $4.55 to $4.65; now expects reported or GAAP diluted EPS of $1.87 to $1.97
- Company makes progress on integration and build-out of its urology franchise
Endo Pharmaceuticals (Nasdaq: ENDP) today reported financial results for the third quarter of 2011.
Total revenues during the third quarter of 2011 increased 71 percent to $759.1 million, compared with $444.1 million in the same quarter of 2010. Net income for the three months ended Sept. 30, 2011, was $40.6 million, compared with $54.2 million in the comparable 2010 period.
Additionally, adjusted net income for the three months ended Sept. 30, 2011, was $151.1 million, up 50 percent compared with $100.8 million in the same period in 2010. Reported diluted earnings per share for the quarter ended Sept. 30, 2011, were $0.34 compared with $0.46 reported in the third quarter of 2010. Adjusted diluted earnings per share for the same period were $1.25, up 45 percent from $0.86 reported in 2010.
“Endo had another strong quarter, with record revenues and adjusted earnings, led by Opana ER, generics and AMS’s Men’s Health business,” said Dave Holveck, president and CEO of Endo. “This performance is a testament to our diversified business model, and our commitment to enhancing healthcare delivery, which allows us to continue to bring together the aggregate capabilities of all our companies to create more solutions for patients, payors and physicians particularly across the entire urology spectrum.”
FINANCIAL PERFORMANCE AT A GLANCE
($ in thousands, except per share amounts) | |||||||
3rd Quarter | Nine Months Ended September 30 | ||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||
Total Revenues | $759,078 | $444,103 | 71% | $1,926,715 | $1,205,039 | 60% | |
Reported Net Income | 40,649 | 54,206 | -25% | 151,019 | 166,021 | -9% | |
Reported Diluted EPS | 0.34 | 0.46 | -26% | 1.24 | 1.42 | -13% | |
Adjusted Net Income | 151,089 | 100,839 | 50% | 399,967 | 282,720 | 41% | |
Adjusted Diluted EPS | 1.25 | 0.86 | 45% | 3.29 | 2.41 | 37% | |
BRANDED PHARMACEUTICALS
Branded pharmaceutical sales of $425.5 million for the third quarter 2011 represented an increase of 17 percent versus the prior year. These results reflect strong commercial performance in our branded pain franchise, where net sales grew 18 percent year over year, with a strong third-quarter performance by OPANA® ER, Voltaren® Gel and LIDODERM®. OPANA® ER net sales grew 66 percent on prescription growth of 56 percent. Voltaren® Gel net sales grew 35 percent. FORTESTA® Gel, a topical gel for the treatment of hypogonadism, recorded approximately $8 million in revenue, which includes the recognition of roughly $4 million previously classified as deferred revenue.
GENERICS
Generic sales of $148 million for the third quarter 2011 represented an increase of 439 percent over last year, driven by our acquisition of Qualitest. Quarter over quarter, generic sales increased $14.9 million, primarily as a result of having the operational flexibility to capitalize on certain market conditions that created new business opportunities for Endo’s Qualitest business. The company continues to execute on its ANDA pipeline in multiple therapeutic areas, with 50 ANDAs currently under U.S. Food and Drug Administration (FDA) review.
DEVICES AND SERVICES
Devices and services sales, driven by our June 2011 acquisition of American Medical System (AMS), were $185.6 million for the third quarter, an increase of 259 percent over the prior year. Men’s Health, led by strong sales of the AMS 800 Artificial Urinary Sphincter, grew 21 percent on a pro forma basis in the third quarter of 2011, compared with same period last year. In early September, an FDA advisory panel met to discuss the use of surgical mesh products in the repair of pelvic organ prolapse and stress urinary incontinence, which the company believes led to reduced procedural volumes during the quarter. However, the company believes that the advisory panel addressed the questions raised and that a recovery in procedural volumes will emerge in the near term.
