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Specialty Pharma Co. Increases Revenues by 22% in Q3; Raises FY Sales and Earnings Forecast

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Shares of brand, generic and injectable drug maker Endo International traded 25% higher after the company reported Q3/21 financial results and raised its FY/21 revenue and EPS guidance.

After U.S. markets closed for trading yesterday, Ireland-based specialty pharmaceutical company Endo International Plc. (ENDP:NASDAQ) announced financial results its third-quarter of 2021 ended September 30, 2021.

Endo International's President and CEO Blaise Coleman remarked, "We delivered strong third-quarter results driven by outstanding execution across all of our businesses. As a result of our year-to-date performance and our expectations for the remainder of 2021, we are raising our full-year 2021 financial guidance."

"We are pleased with our progress against our strategic priorities including our efforts to expand and enhance our portfolio with the recent launch of varenicline tablets, the only available FDA approved generic version of Chantix® and the continued positive market response to QWO®," Coleman added.

The company reported that total revenues in Q3/21 increased by 22% to $772 million, compared to $635 million in Q3/20. The firm noted that the increase was due primarily to higher revenues achieved in its Branded and Generic Pharmaceuticals segments and Sterile Injectables business.

Endo provided a breakdown of revenues by business unit and stated that in Q3/21 its Branded Pharmaceuticals segment revenues grew by 3% to $231 million, up from $224 million in Q3/20. During the same period, the firm advised that Specialty Products revenues increased by 16% to $162 million, versus $140 million Q3/20. The company noted that the rise in this area was largely attributable to a 20% rise in revenues from XIAFLEX® sales of $106 million, compared to $88 million in the prior year's corresponding quarter.

The company highlighted that revenues generated in its Sterile Injectables segment during Q3/2 increased 37% year-over-year to $344 million, compared to $251 million in Q3/20. Endo advised, "the increase was attributable to additional VASOSTRICT® revenues primarily due to hospitalizations associated with the COVID-19 delta variant."

The firm reported that in Q3/21 it also enjoyed a 29% y-o-y increase in its Generic Pharmaceuticals segment with revenues of $174 million, versus $136 million during Q3/20. The company indicated that the growth came from revenues derived from new 2021 product launches.

Endo added that revenues from its International Pharmaceuticals segment during Q3/21 were off slightly coming in at $23 million, compared to $24 million in Q3/20.

Endo indicated that in Q3/21 it posted a loss from continuing operations of $49 million, or $0.21 per diluted share, versus a loss of $69 million, or $0.30 per diluted share in Q3/20. The company stated that the improvement was mostly the result of the increased revenues and favorable changes in its product mix. The firm advised that a portion of the gains were offset by certain legal and operating costs surrounding its investment and promotional activities surrounding XIAFLEX® and QWO®.

The company stated that for Q3/21, it had adjusted income from continuing operations of $189 million, or $0.80 per diluted share, compared to $122 million, or $0.52 per diluted share in Q3/20.

The company offered some forward guidance that stated that it is raising the expected ranges for FY/21 revenues, net income per share and adjusted EBITDA.

Endo advised that for FY/21 it now estimates that total revenues will be between $2.90-2.94 billon, up from its prior forecast of $2.73-2.79 billion.

The firm added that it now anticipates that FY/21 adjusted EBITA will be between $1.40-1.42 billion with adjusted diluted net income of $2.80-2.85 per share, based upon approximately 236 million shares outstanding.

Endo International is a specialty pharmaceutical company based in Dublin, Ireland, and its U.S. operations are headquartered in Malvern, Penn. The firm's product line includes medicines used in endocrinology, orthopedics and urology and men's health. The firm's U.S. branded pharmaceuticals portfolio includes Lidoderm, OPANA ER, Voltaren Gel, Percocet and many others. The company's numerous non-branded generic medicines are available in various doses and delivery formats including tablets, capsules, powders, injectables, liquids, nasal sprays, ophthalmics and patches.

Endo International started the day with a market cap of around $1.2 billion with approximately 233.5 million shares outstanding and a short interest of about 8.5%. ENDP shares opened more than 7% higher today at $5.32 (+$0.38, +7.69%) over yesterday's $4.94 closing price. The stock has traded today between $5.05 and $6.87 per share and is currently trading at $6.18 (+$1.24, +25.10%).


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