Endo Pharma Q4 Profit Rises - Update

Posted on: Fri, 27 Feb 2009 09:39:00 EST


Symbols: ABT, PFE, ENDP
(RTTNews) - Friday, specialty pharmaceutical company Endo Pharmaceuticals Holdings Inc. (ENDP | Quote | Chart | News | PowerRating) posted higher profit in its fourth quarter, with a double-digit growth in topline, driven primarily by strong sales from its Oral Opioid Analgesics. Further, the company issued financial forecast for fiscal 2009.

Q4 Results

The company's fourth-quarter net income was $74.9 million or $0.64 per share, compared to $50.6 million or $0.38 per share in the year-ago quarter.

On an adjusted basis, net income amounted to $82.7 million or $0.71 per share, up from $69.6 million or $0.52 per share in the same quarter of last year.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net sales advanced to $347.3 million from the previous year's sales of $304.6 million, and surpassed twenty Wall Street analysts' consensus revenue estimate of $334.11 million for the quarter.

Segmental Analysis

Net sales from the company's generic products, which includes Endocet, Endodan and Zydone, were $24.1 million, compared to $19.2 million in the prior year quarter.

The company's Lidoderm generated fourth-quarter net sales of $205.4 million, down 2% from $208.7 million in the comparable quarter of the previous year. Prescription volume for Lidoderm increased 1% from prior year.

Combined net sales for Oral Opioid Analgesics Opana ER and Opana climbed 81% to $52.3 million from $28.9 million reported last year. Prescription volume for its Opana franchise jumped 64% over 2007. Percocet fetched quarterly net sales of $33.4 million, an increase from the previous year's sales of $30.6 million. Frova posted net sales of $16.8 million for the latest quarter, up from $14.1 million in the year-earlier quarter.

FY08 Highlights

For the full year 2008, the company reported net income of $261.7 million or $2.12 per share, compared to $227.4 million or $1.69 per share in 2007.

Adjusted net income totaled $297.2 million or $2.40 per share, compared to $258.1 million or $1.92 per share last year. Analysts expected earnings of $2.23 per share for fiscal 2008.

Annual net sales for 2008 increased to $1.26 billion from $1.09 billion reported in the previous year. Wall Street analysts had a consensus revenue estimate of $1.25 billion for 2008.

Road Ahead

Looking forward to fiscal 2009, the company expects earnings to be in the range of $1.73 - $1.81 per share, and adjusted earnings of $2.59 - $2.67 per share. Fiscal 2009 net sales are projected to range between $1.39 billion and $1.44 billion. Analysts are looking for earnings of $2.60 per share on revenues of $1.41 billion for the full year.

Other In The Sector

Among Endo Pharma's rivals, Abbott Laboratories (ABT | Quote | Chart | News | PowerRating) reported a 27.3% growth in fourth-quarter earnings, helped by higher sales largely due to double-digit growth in the company's arthritis treatment Humira, and a gain from the sale of its spine business. Further, the company confirmed its prior earnings forecast of $3.65-$3.70 per share for full-year 2009. The midpoint of this 2009-guidance range reflects double-digit growth over 2008 earnings per share.

Another peer, the world's biggest drug maker Pfizer Inc. (PFE | Quote | Chart | News | PowerRating) posted a steep decline in its fourth quarter, hurt by a hefty charge on legal settlement and lower sales. The company also issued forecast for fiscal 2009, expecting earnings of $1.34 - $1.49 per share and adjusted earnings of $1.85 - $1.95 per share, on revenues between $44 billion and $46 billion. In addition, Pfizer said it would reduce its workforce by about 10%.

Stock Performance

Endo Pharma shares, which have been moving between $2.03 and $9.92 in the past 52 weeks, closed Thursday's trading session at $19.93.

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For full details on Abbott Laboratories (ABT) ABT. Abbott Laboratories (ABT) has Short Term PowerRatings at TradingMarkets. Details on Abbott Laboratories (ABT) Short Term PowerRatings is available at This Link.

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For full details on Endo Pharmaceuticals Hld (ENDP) ENDP. Endo Pharmaceuticals Hld (ENDP) has Short Term PowerRatings at TradingMarkets. Details on Endo Pharmaceuticals Hld (ENDP) Short Term PowerRatings is available at This Link.

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