Endo Swings To Loss, But Tops View; Raises FY Outlook

(RTTNews) - Drug maker Endo International plc (ENDP, ENL.TO), Wednesday reported a swing to loss in the third quarter, hurt mainly by increase in liability reserve made to settle claims related to its vaginal mesh products.

Nonetheless, adjusted earnings improved from a year ago, as revenues grew 16 percent driven by higher U.S. generic product sales and international pharmaceuticals revenues that erased sales declines at its U.S. branded pharmaceuticals division. Moving ahead, the company again boosted its full-year 2014 financial forecast.

Dublin-based Endo reported a third-quarter loss of $252.1 million or $1.64 per share, compared to a profit of $40.2 million or $0.33 per share last year.

Third-quarter loss mainly reflects the $400 million increase in product liability accrual to resolve claims in the U.S. related to its vaginal-mesh products.

Adjusted earnings for the quarter rose to $182.3 million from $160.7 million a year ago. On a per share, basis, adjusted earnings dropped to $1.15 from $1.34 last year, due to higher number of shares. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter rose 16 percent to $763.9 million from $661.3 million last year. Analysts had a consensus revenue estimate of $725.71 million for the quarter.

Total U.S. branded pharmaceuticals revenue declined 34 percent to $241 million, while U.S. generic pharmaceuticals revenue surged 74 percent to $319 million, driven by acquisition of Boca Pharmacal and DAVA Pharmaceuticals. International pharmaceuticals added $93.8 million in the quarter.

Looking ahead to the full year, Endo raised its adjusted earnings outlook to $4.10 to $4.25 per share from its prior outlook of $4.00 to $4.20 per share. Analysts currently expect earnings of $4.09 per share for the year.

The company also raised its revenue guidance to $2.80 billion to $2.88 billion from its prior guidance of $2.78 billion to $2.86 billion. Analysts currently expect revenues of $2.81 billion for the year.

Endo last month announced a deal to buy Auxilium Pharmaceuticals Inc. for about $2.6 billion in a cash-and-stock, in order to gain its testosterone products.

ENDO closed Wednesday's trading at $68.10, down $0.57 or 0.83%, on the Nasdaq.