Endo Pharmaceuticals reports 9% increase in first-quarter 2010 revenues

• Total quarterly revenues increase 9 percent versus prior year; branded drug sales up 14 percent
• Reported diluted EPS of $0.51, up 55 percent from prior year; adjusted diluted EPS of $0.74, reflecting growth of 10 percent from 2009
• Company reconfirms 2010 revenue and adjusted diluted EPS guidance  

Endo Pharmaceuticals (Nasdaq: ENDP) today reported financial results for the first quarter 2010.

Total revenues during the first quarter of 2010 increased 9 percent to $364 million, compared with $335 million in the same quarter of 2009.  Net income for the three months ended March 31, 2010, was $60 million, compared with $39 million in the comparable 2009 period.  As detailed in the supplemental financial information below, adjusted net income for the three months ended March 31, 2010, was $87 million, compared with $79 million in the same period in 2009.  Reported diluted earnings per share for the quarter ended March 31, 2010, were $0.51, compared with $0.33 in the first quarter of 2009.  Adjusted diluted earnings per share for the same period were $0.74, compared with $0.67 reported in 2009.

"I am pleased with our quarterly results, which represent positive momentum as we continue to execute our 2010 growth strategy," said Dave Holveck, president and CEO of Endo. "While Health Care Reform has passed, there is still work to be done, and how we anticipate and embrace this new environment will be a key factor in our ongoing success.  That is why Endo continues to focus on being a better partner to physicians, payment providers and patients by offering multiple products and platforms and by identifying assets the company needs to succeed under any scenario."

First quarter 2010 Financial Results and Full Year 2010 Financial Guidance

The first quarter results reflect solid contributions across both the branded and generic components of our business.  Branded drug sales rose 14 percent year-over-year, reflecting strong growth by key products in pain, urology and oncology.  Revenues from our generics business decreased 39 percent versus the first quarter of 2009.  Prior year results for generics benefited from an unusual market shortfall in the supply for certain generic pain treatment products.  Products in our Endocrinology and Oncology markets performed well with attractive growth in SUPPRELIN® LA and a continued strong launch for VALSTAR®.    

The Company continues to anticipate revenues of between $1.55 and $1.60 billion this year, although the impact of Health Care Reform increases the likelihood of our being in the lower half of this range.  The company expects that the various elements of Health Care Reform will adversely affect 2010 revenues by approximately $20 million, primarily driven by changes in mandated rebates associated with our Medicaid fee for service and Managed Medicaid books of business.  The company continues to anticipate Adjusted Diluted earnings per share of between $3.15 to $3.20.  Reported (or GAAP) diluted earnings per share are now expected to be between $2.31 to $2.39 per share, reflecting incremental milestone payments to R&D partners, among other factors.

Selected Product Review

PAIN PRODUCTS

LIDODERM®:  For the quarter ended March 31, 2010, net sales of LIDODERM increased 6 percent to $183 million compared with $172 million reported in the same period a year ago.  The company continues to expect low single-digit growth for Lidoderm in 2010.  

OPANA® ER and OPANA®:  Combined net sales for the OPANA franchise increased 25 percent to $66 million for the first quarter 2010, compared with $53 million in the same period a year ago.  The franchise continues to benefit from strong patient demand and continuously improving formulary positioning, as well as the retention of exclusivity for the immediate release formulation of the product.      

FROVA®: Net sales of FROVA were $15 million for the three months ended March 31, 2010, compared with $12 million for the same period in 2009.  

Voltaren® Gel: First quarter 2010 net sales of Voltaren Gel were $20 million, compared with $12 million for the same period in 2009.  The Company introduced targeted print Direct to Consumer advertising for this product in early March and is encouraged by the response to date from this new promotional effort.    

ONCOLOGY/ENDOCRINOLOGY PRODUCTS

SUPPRELIN® LA:  First quarter 2010 net sales of SUPPRELIN LA were $11 million, compared with $3 million for the same period in 2009, reflecting growing market share and expanded use by physicians.

VANTAS®:  First quarter 2010 net sales of VANTAS were $4 million, compared with $2 million for the same period in 2009.

VALSTAR™:  First quarter net sales of VALSTAR were $4 million.  Over 600 patients have now been treated with Valstar since it was launched by Endo in the fall of 2009.  

OTHER BRANDED PRODUCTS

For the first quarter of 2010, net sales of other branded products were $3 million, compared with $6 million in the same period in 2009.  

GENERIC AND NON-PROMOTED PRODUCTS

For the first quarter of 2010, net sales from the company's generic products were $26 million, compared with $42 million in the same period in 2009.  During the first quarter of 2009, the company benefited from an unusual market shortfall in the supply for certain generic pain treatment products.  Net sales of Percocet® were $29 million for the three months ended March 31, 2010, compared with net sales of Percocet® in the same period in 2009 of $34 million.    

Change in Board of Directors

On a separate note, the Endo management team wishes to express its sincere thanks to Clive Meanwell, M.D., Ph.D., for his dedicated years of service. Dr. Meanwell notified the company on April 28, 2010 of his intent to not stand for reelection as a director of the Company at the Company's 2010 Annual Meeting of Stockholders, so that he may better focus on his other professional responsibilities. Dr. Meanwell will continue to serve as a director of the Company until the expiration of his term at the Company's 2010 Annual Meeting of Stockholders.

SOURCE Endo Pharmaceuticals