Markets
MYL

Endo Beats on Q3 Earnings and Revenues, Reiterates View

Endo International 's ENDP third-quarter 2015 earnings of $1.02 per share beat the Zacks Consensus Estimate of $1.00 but decreased 1% from the year-ago period.

Revenues came in at $745.7 million in the third quarter of 2015, up 14% year over year. Revenues were also above the Zacks Consensus Estimate of $738 million.

The Quarter in Details

The company reports results through three segments - Branded Pharmaceuticals (U.S.), Generic Pharmaceuticals (U.S.) and International Pharmaceuticals.

U.S. Branded Pharmaceuticals sales were up 27% to $305 million primarily attributable to the inclusion of Auxilium Pharmaceuticals revenues. While Voltaren Gel sales were up 5% driven by demand growth, revenues were hurt by lower sales of Lidoderm (29%) due to generic competition and entry of newer therapies.

Endo reported generic product net sales of $368 million in the quarter, up 15%. The addition of Par Pharmaceuticals (Sep 2015) and DAVA Pharmaceuticals' (Aug 2014) products and new product launches led to higher segmental sales.

The newly formed International Pharmaceuticals division contributed $73 million to total revenue in the third quarter compared with $81 million in the preceding quarter.

2015 Outlook Maintained

For 2015, the company expects earnings in the range of $4.50-$4.60 per share. It expects revenues in the range of $3.22 billion to $3.27 billion. The Zacks Consensus Estimate for 2015 earnings is $4.55 on revenues of approximately $3.26 billion.

For 2016, Endo expects earnings per share in the range of $5.85 to $6.15. The Zacks Consensus Estimate for 2016 earnings is $5.93.

Last month, the FDA cleared Endo and its partner BioDelivery Sciences International, Inc.'s BDSI Belbuca (buprenorphine HCL buccal film) for the management of chronic pain severe enough to require daily, around-the-clock, long-term opioid treatment, for which alternative treatment options were inadequate. Following the approval, Endo is conducting a strategic portfolio optimization process to expand its pain sales force and reallocate resources across key growth products in the U.S. Branded Pharmaceuticals business.

Our Take

We are impressed by Endo's performance in the third quarter. Generic and branded revenues were encouraging. Approval of Belbuca is a major positive for the company. Revenues from the product could offset the impact of genericization faced by some key drugs at Endo including Lidoderm. The company has also been quite active on the acquisition front. We expect to see more of such deals in the near term.

Endo carries a Zack Rank #2 (Buy). Other favorably ranked stocks in the health care sector are Eli Lilly and Company LLY and Mylan MYL . Both carry the same Zack Rank as Endo.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ENDO INTL PLC (ENDP): Free Stock Analysis Report

LILLY ELI & CO (LLY): Free Stock Analysis Report

MYLAN NV (MYL): Free Stock Analysis Report

BIODELIVERY SCI (BDSI): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MYL ENDP BDSI LLY

Other Topics

Earnings Stocks

Latest Markets Videos