#United States #Financial Guidance #Endo #XIAFLEX #Malvern, Pennsylvania

Endo, Inc. First-Quarter 2025 Financial Results

Endo, Inc., a diversified pharmaceutical company, has recently disclosed its financial outcomes for the first quarter ending March 31, 2025. Despite facing certain market challenges, the company showcases a growth trajectory with notable performances in specific product segments, specifically in its branded pharmaceuticals. The company's interim CEO, Scott Hirsch, expressed confidence in the organization's ongoing transformation and bolstered growth strategies, particularly given the solid performance of XIAFLEX®.

Financial Highlights

Endo reported total net revenues of approximately $393 million for the first quarter, marking a 6% decline from $420 million during the same period last year. This decrease is primarily attributed to heightened competition in the Sterile Injectables and Generic Pharmaceuticals segments. However, the Branded Pharmaceuticals category demonstrated strength, achieving revenues of $209 million, a 4% increase from the previous year fueled by a 7% revenue growth in XIAFLEX®, which reached $121 million this quarter.

Detailed Breakdown of Performance

• - Branded Pharmaceuticals: Revenue increased to $209 million, up from $201 million last year. The growth is significantly driven by XIAFLEX® sales, which increased mainly due to volume gains.
• - Sterile Injectables: Reported revenues fell to $71 million from $98 million, reflecting competitive pressures on key products like VASOSTRICT® and ADRENALIN®.
• - Generic Pharmaceuticals: Revenues in this sector decreased to $99 million from $103 million amid market competitiveness impacting several products.
• - International Pharmaceuticals: This segment experienced a decline in revenue to $13 million, down from $17 million, largely due to expired licensing agreements.

Overall, the company reported a net loss of $129 million, an improvement compared to $154 million reported a year prior. The reduction in losses is mainly due to decreased operational expenses linked with their Chapter 11 restructuring efforts.

Looking Ahead: Financial Guidance for 2025

Endo is reaffirming its revenue guidance for the entirety of 2025, projecting net revenues between $1.775 billion and $1.860 billion, alongside an Adjusted EBITDA estimate of $620 million to $650 million. This outlook is influenced by Endo's strategic initiatives and ongoing operational improvements across its different pharmaceutical sectors.

As part of the company’s strategic focus, it anticipates completing a significant transaction with Mallinckrodt in the latter half of 2025, which is expected to enhance its market positioning substantially. The merger aims to create a powerful combined entity focused on diversified pharmaceutical goals.

Conclusion

The first quarter results reflect Endo’s adaptive strategies in a highly competitive market, highlighting the strong performance of XIAFLEX® as a key driver in its branded pharmaceuticals sector. With the reaffirmed 2025 guidance and strategic growth plans underway, Endo remains committed to navigating the evolving pharmaceutical landscape and delivering value to its stakeholders. The company looks forward to elaborating on its strategy and performance in the upcoming conference call scheduled for May 7, 2025, at 8:30 AM ET. Interested stakeholders can access the call and additional materials through the company's investor relations website.