Endo Health Turns First Quarter Profit, Affirms 2013 Forecast
Endo Health Solutions Inc. turned a first-quarter profit, reversing a lost at the start of 2012, when the drug developer absorbed a sizeable pre-tax charge tied to a settlement and license agreement.
The Malvern, Pa., company said Tuesday it earned $15.3 million, or 14 cents per share, in the three months that ended March 31. That compared with a loss of $87.3 million, or 75 cents per share, in last year's quarter. Adjusted earnings totaled $1.09 per share in the most recent quarter.
Revenue climbed nearly 3 percent to $708.5 million.
Analysts surveyed by FactSet expected, on average, adjusted earnings of $1.07 per share on $738.6 million in revenue.
In last year's quarter, Endo absorbed a $110-million pre-tax charge tied to an agreement with Impax Laboratories Inc. Endo made the Impax payment as part of the settlement of a patent dispute over generic versions of Endo's pain drug Opana ER.
In this year's quarter, revenue climbed despite an 11 percent drop in sales of the company's Lidoderm pain patch to $187 million. Revenue from Opana ER fell 31 percent to $56.3 million, as the drug faced generic competition and had a supply disruption at the end of last year's quarter that caused some patients to switch to other products.
The company also recorded $36.1 million in sales from its joint pain treatment Voltaren Gel in this year's quarter, after recording none last year due to manufacturing problems at a Lincoln, Neb., factory.
Endo reaffirmed its forecast for 2013 adjusted earnings of between $4.40 and $4.70 per share on between $2.8 billion and $2.95 billion in revenue.
Analysts expect, on average, earnings of $4.49 per share on $2.91 billion in revenue.
Company shares closed at $37.92 on Monday and have ranged between $25 and $38.05 over the past year.