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
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 March 21, 2006. Readers should evaluate any statement in light of these important factors.
Endo Pharmaceuticals Holdings Inc.
CONTACT: Bill Newbould of Endo Pharmaceuticals Holdings Inc.,+1-610-558-9800
Web site: http://www.endo.com/
