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Endo Reports Fourth-Quarter and Full-Year 2024 Financial Results
- Endo achieved 2024 revenues and adjusted EBITDA expectations, while progressing the Company's strategic priorities
- XIAFLEX® hit record revenues of $516 million in 2024, up 9% versus 2023
- The Company provides 2025 revenue guidance of $1,775 to $1,860 million and adjusted EBITDA guidance of $620 to $650 million
MALVERN, Pa., March 13, 2025 /PRNewswire/ -- Endo, Inc. ("Endo" or the "Company") (OTCQX: NDOI) today reported financial results for the fourth quarter and full-year ended December 31, 2024.
"We ended the year strong, with XIAFLEX® annual revenues exceeding $500 million for the first time and the successful launch of ADRENALIN® ready-to-use premixed bags," said Scott Hirsch, Interim Chief Executive Officer. "These milestones, along with the strategic realignment of our sterile product pipeline and the two recently announced transformative transactions, underscore our commitment to deliver growth and shareholder value."
Separately, the Company announced that it has entered into a definitive agreement to combine with Mallinckrodt plc in a cash and stock transaction.
ENDO FOURTH-QUARTER FINANCIAL PERFORMANCE
(in thousands)
Successor (a) | Predecessor (a) | |||||
Three Months | Three Months | % Change | ||||
Branded Pharmaceuticals | $ 246,878 | $ 245,769 | — % | |||
Sterile Injectables | $ 92,266 | $ 95,899 | (4) % | |||
Generic Pharmaceuticals | $ 110,879 | $ 139,211 | (20) % | |||
International Pharmaceuticals | $ 17,474 | $ 16,855 | 4 % | |||
Total Revenues, Net | $ 467,497 | $ 497,734 | (6) % | |||
Net Loss | $ (349,312) | $ (2,441,483) | (86) % | |||
Adjusted Net Income (b) | $ 70,498 | $ 151,060 | (53) % | |||
Adjusted EBITDA (b) | $ 163,913 | $ 166,341 | (1) % |
__________ | |
(a) | Endo acquired substantially all of the assets of Endo International plc ("EIP"), on April 23, 2024, as contemplated by EIP's plan of reorganization. |
(b) | The information presented in the table above includes non-GAAP financial measures such as Adjusted Net Income and Adjusted EBITDA. Please refer to the "Supplemental Financial Information" section below for reconciliations of certain non-GAAP financial measures to the most directly comparable GAAP financial measures. |
CONSOLIDATED RESULTS
Total revenues in fourth-quarter 2024 were $467 million, a decrease of 6% compared to $498 million in fourth-quarter 2023. This decrease was primarily attributable to competitive pressure across the Generic Pharmaceuticals and Sterile Injectables segments.
Net Loss in fourth-quarter 2024 was $349 million, compared to a net loss of $2,441 million in fourth-quarter 2023. This change was driven by fourth-quarter 2023 adjustments to estimated allowed claims, including with respect to certain litigation matters and debt obligations that were reduced to actual payments upon emergence from the Chapter 11 process in second-quarter 2024. This was partially offset by fourth-quarter 2024 asset impairment charges and the application of fresh start accounting.
Adjusted Net Income in fourth-quarter 2024 was $70 million, compared to $151 million in fourth-quarter 2023. This change was primarily due to increased interest and income tax expenses in fourth-quarter 2024.
Adjusted EBITDA in fourth-quarter 2024 was $164 million, compared to $166 million in fourth-quarter 2023. This change was primarily driven by decreased revenues, partially offset by higher adjusted gross margin due to changes in segment and product mix.
SEGMENT RESULTS
Branded Pharmaceuticals segment revenues in fourth-quarter 2024 were $247 million, compared to $246 million in fourth-quarter 2023. XIAFLEX® revenues were $148 million in both fourth-quarter 2024 and fourth-quarter 2023.
Fourth-quarter 2023 results included the benefit of a one-time reserve reversal of approximately $14 million following application of the final Inflation Reduction Act vial-wastage rebate determination to XIAFLEX®. Fourth-quarter 2024 XIAFLEX® revenues were primarily driven by an 8% increase in volume due to strong underlying demand.
Sterile Injectables segment revenues in fourth-quarter 2024 were $92 million, compared to $96 million in fourth-quarter 2023. This change was primarily driven by competitive pressure on VASOSTRICT®, partially offset by the resolution of previously disclosed temporary supply disruptions. During fourth-quarter 2024, the Company launched three sterile injectable products, including ADRENALIN® ready-to-use (RTU) premixed bags, the first and only FDA-approved, manufacturer-prepared epinephrine premixed IV bags.
Generic Pharmaceuticals segment revenues in fourth-quarter 2024 were $111 million, compared to $139 million in fourth-quarter 2023. This change was primarily attributable to competitive pressure across a number of products, mainly dexlansoprazole delayed-release capsules, partially offset by increased revenues from lidocaine patch 5%.
International Pharmaceuticals segment revenues in fourth-quarter 2024 were $17 million, compared to $17 million in fourth-quarter 2023.
BALANCE SHEET AND LIQUIDITY
As of December 31, 2024, Endo had $387 million in unrestricted cash and cash equivalents.
Net cash provided by operating activities in fourth-quarter 2024 was $30 million, compared to $115 million in fourth-quarter 2023. This change was primarily driven by increased interest and tax payments in fourth-quarter 2024 compared to fourth-quarter 2023.
FINANCIAL GUIDANCE
Endo is providing the following financial guidance for the full year ending December 31, 2025 based on Endo's current views, beliefs, estimates and assumptions. Guidance for the full year 2025 includes the International Pharmaceuticals business and will be updated following completion of the divestiture. All financial expectations provided by Endo are forward-looking, and actual results may differ materially from such expectations, as further discussed below under the heading "Cautionary Note Regarding Forward-Looking Statements."
Current Outlook | |
($ in millions) | |
Total Revenues, Net | $1,775 - $1,860 |
Adjusted EBITDA | $620 - $650 |
Assumptions: | |
Segment Revenues: | |
Branded Pharmaceuticals | $895 - $920 |
Sterile Injectables | $360 - $395 |
Generic Pharmaceuticals | $450 - $475 |
International Pharmaceuticals | ~$70 |
Adjusted Gross Margin as a Percentage of Total Revenues, Net | ~64% |
Adjusted Operating Expenses | $590 - $610 |
CONFERENCE CALL INFORMATION
Endo and Mallinckrodt will host a joint conference call to discuss the proposed transaction and their respective fourth quarter and full year 2024 results today, March 13, 2025, at 8:00 a.m. ET.
The webcast may be accessed through this webcast link or from the Investor Relations section of the Company's website at investor.endo.com/events. To access the call through a conference line, participants may dial 800-836-8184 (U.S. and Canada toll-free) or 646-357-8785 (outside the U.S.). Participants are advised to join 10 minutes prior to the scheduled start time. A replay of the webcast will be available following the event.
FINANCIAL SCHEDULES
The following table presents unaudited Total Revenues, Net (dollars in thousands):
Successor | Predecessor | |||||
Three Months | Three Months | % Change 2024 vs. 2023 | ||||
Specialty Products: | ||||||
XIAFLEX® | $ 147,939 | $ 147,760 | — % | |||
SUPPRELIN® LA | 25,659 | 23,459 | 9 % | |||
Other Specialty (1) | 14,496 | 16,515 | (12) % | |||
Total Specialty Products | $ 188,094 | $ 187,734 | — % | |||
Established Products: | ||||||
PERCOCET® | $ 25,432 | $ 27,584 | (8) % | |||
TESTOPEL® | 10,886 | 10,265 | 6 % | |||
Other Established (2) | 22,466 | 20,186 | 11 % | |||
Total Established Products | $ 58,784 | $ 58,035 | 1 % | |||
Total Branded Pharmaceuticals (3) | $ 246,878 | $ 245,769 | — % | |||
Sterile Injectables: | ||||||
ADRENALIN® | $ 24,102 | $ 24,329 | (1) % | |||
VASOSTRICT® | 13,016 | 21,983 | (41) % | |||
Other Sterile Injectables (4) | 55,148 | 49,587 | 11 % | |||
Total Sterile Injectables (3) | $ 92,266 | $ 95,899 | (4) % | |||
Total Generic Pharmaceuticals (5) | $ 110,879 | $ 139,211 | (20) % | |||
Total International Pharmaceuticals (6) | $ 17,474 | $ 16,855 | 4 % | |||
Total Revenues, Net | $ 467,497 | $ 497,734 | (6) % |
__________ | |
(1) | Products included within Other Specialty include, but are not limited to, AVEED®. |
(2) | Products included within Other Established include, but are not limited to, EDEX®. |
(3) | Individual products presented above represent the top two performing products for the periods presented and/or any product having revenues in excess of $25 million during the quarter. |
(4) | Products included within Other Sterile Injectables include, but are not limited to, APLISOL®. No individual product within Other Sterile Injectables has exceeded 5% of consolidated total revenues for the periods presented. |
(5) | The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have limited or no intellectual property protection and are sold within the U.S. During the Successor three months ended December 31, 2024, Lidocaine patch 5%, made up 9% of consolidated revenues. During the Predecessor three months ended December 31, 2023, Dexlansoprazole delayed release capsules, which launched in November 2022, made up 6% of consolidated total revenues. |
(6) | No individual product within the International Pharmaceuticals segment accounted for more than 5% of consolidated total revenues for any of the periods presented. |
The following table presents the unaudited Condensed Consolidated Statement of Operations (dollars in thousands):
Successor | Predecessor | |||
Three Months | Three Months | |||
TOTAL REVENUES, NET | $ 467,497 | $ 497,734 | ||
COSTS AND EXPENSES: | ||||
Cost of revenues | 402,450 | 249,535 | ||
Selling, general and administrative | 138,315 | 140,433 | ||
Research and development | 28,077 | 28,140 | ||
Litigation-related and other contingencies, net | 3 | 1,556,773 | ||
Asset impairment charges | 243,635 | 357 | ||
Acquisition-related and integration items, net | 727 | 148 | ||
Interest expense (income), net | 56,655 | (239) | ||
Reorganization items, net | — | 942,382 | ||
Other income, net | (8,822) | (7,525) | ||
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX | $ (393,543) | $ (2,412,270) | ||
INCOME TAX (BENEFIT) EXPENSE | (44,231) | 28,768 | ||
(LOSS) INCOME FROM CONTINUING OPERATIONS | $ (349,312) | $ (2,441,038) | ||
DISCONTINUED OPERATIONS, NET OF TAX | — | (445) | ||
NET (LOSS) INCOME | $ (349,312) | $ (2,441,483) | ||
NET (LOSS) INCOME PER SHARE—BASIC: | ||||
Continuing operations | $ (4.59) | $ (10.38) | ||
Discontinued operations | — | — | ||
Basic | $ (4.59) | $ (10.38) | ||
NET (LOSS) INCOME PER SHARE—DILUTED: | ||||
Continuing operations | $ (4.59) | $ (10.38) | ||
Discontinued operations | — | — | ||
Diluted | $ (4.59) | $ (10.38) | ||
WEIGHTED AVERAGE SHARES: | ||||
Basic | 76,156 | 235,220 | ||
Diluted | 76,156 | 235,220 |
The following table presents unaudited Total Revenues, Net (dollars in thousands):
Successor | Predecessor | Non-GAAP | Predecessor | Non-GAAP | ||||||
2024 | Period From | Combined | 2023 | % Change 2024 vs. 2023 | ||||||
Specialty Products: | ||||||||||
XIAFLEX® | $ 362,985 | $ 152,638 | $ 515,623 | $ 475,014 | 9 % | |||||
SUPPRELIN® LA | 59,307 | 26,213 | 85,520 | 96,849 | (12) % | |||||
Other Specialty (1) | 36,147 | 21,120 | 57,267 | 73,797 | (22) % | |||||
Total Specialty Products | $ 458,439 | $ 199,971 | $ 658,410 | $ 645,660 | 2 % | |||||
Established Products: | ||||||||||
PERCOCET® | $ 63,486 | $ 33,892 | $ 97,378 |
By: PR Newswire Association LLC.
- 13 Mar 2025
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