1. Endo reported fourth quarter revenues of $467 million, down 6% from last year. 2. XIAFLEX® revenues surpassed $500 million, driven by strong demand. 3. Endo announced a merger with Mallinckrodt plc in a cash and stock deal. 4. Net loss reduced significantly to $349 million from $2.44 billion last year. 5. Financial guidance for 2025 projects total revenues of $1.775 to $1.86 billion.
The successful launch of ADRENALIN® and strong XIAFLEX® sales could lead to positive market sentiment. Historical examples like significant sales after product launches indicate that innovative product offerings can boost stock prices.
The merger and positive sales trends can significantly impact investor interest in NDOI. Market reactions to M&A deals are often strong, impacting stock prices in the short run.
The imminent merger and product launches suggest potential immediate market reactions. Similar past events have resulted in short-term price spikes following announcements.
"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.
| Successor (a) | Predecessor (a) | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | % Change 2024 vs. 2023 |
|---|---|---|---|---|
| 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) % |
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.
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.
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 $115 million in fourth-quarter 2023. This change was primarily driven by increased interest and tax payments in fourth-quarter 2024 compared to fourth-quarter 2023.
Endo is providing the following financial guidance for the full year ending December 31, 2025 based on Endo's current views, beliefs, estimates, and assumptions. Guidance for the full year 2025 includes the International Pharmaceuticals business and will be updated following completion of the divestiture. All financial expectations provided by Endo are forward-looking, and actual results may differ materially from such expectations.
| ($ in millions) | Total Revenues, Net | Adjusted EBITDA |
|---|---|---|
| Current Outlook | $1,775 - $1,860 | $620 - $650 |
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.
The following table presents unaudited Total Revenues, Net (dollars in thousands):
| Successor | Predecessor | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | % 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) % |
The following table presents unaudited Condensed Consolidated Statement of Operations (dollars in thousands):
| Successor | Predecessor | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 |
|---|---|---|---|
| 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 | 2024 | Period From January 1, 2024 through April 23, 2024 | Combined 2024 (7) | 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 | $ 106,375 | (8) % |
| TESTOPEL® | $ 27,872 | $ 13,225 | $ 41,097 | $ 42,464 | (3) % | |
| Other Established (2) | $ 60,413 | $ 32,626 | $ 93,039 | $ 64,588 | 44 % | |
| Total Established Products | $ 151,771 | $ 79,743 | $ 231,514 | $ 213,427 | 8 % | |
| Total Branded Pharmaceuticals (3) | $ 610,210 | $ 279,714 | $ 889,924 | $ 859,087 | 4 % | |
| Sterile Injectables: | ADRENALIN® | $ 60,207 | $ 38,601 | $ 98,808 | $ 99,910 | (1) % |
| VASOSTRICT® | $ 36,354 | $ 34,309 | $ 70,663 | $ 93,180 | (24) % | |
| Other Sterile Injectables (4) | $ 132,307 | $ 59,621 | $ 191,928 | $ 236,473 | (19) % | |
| Total Sterile Injectables (3) | $ 228,868 | $ 132,531 | $ 361,399 | $ 429,563 | (16) % | |
| Total Generic Pharmaceuticals (5) | $ 291,430 | $ 143,677 | $ 435,107 | $ 650,352 | (33) % | |
| Total International Pharmaceuticals (6) | $ 47,658 | $ 26,052 | $ 73,710 | $ 72,516 | 2 % | |
| Total Revenues, Net | $ 1,178,166 | $ 581,974 | $ 1,760,140 | $ 2,011,518 | (12) % |
Endo is a diversified pharmaceutical company boldly transforming insights into life-enhancing therapies. Our passionate team members collaborate to develop and deliver these essential medicines. Together, we are committed to helping everyone we serve live their best life. Learn more at www.endo.com or connect with us on LinkedIn.
This press release contains forward-looking statements including, but not limited to the statements by Mr. Hirsch and any statements relating to financial guidance, expectations, plans or projections, supply disruptions, pipeline development or realignment, product launches and submissions, strategic priorities, the combination with Mallinckrodt, improving performance, revenue growth, competition, demand and any other statements that refer to expected, estimated, predicted or anticipated future results or that do not relate solely to historical facts. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intends," "guidance," "future," "potential" or similar expressions are examples of forward-looking statements. Because these statements reflect Endo's current views, expectations and beliefs concerning future events, they involve risks and uncertainties, some of which Endo may not currently be able to predict. Although Endo believes that these forward-looking statements and other information are based upon reasonable assumptions and expectations, readers should not place undue reliance on these or any other forward-looking statements and information. Actual results may differ materially and adversely from current expectations based on a number of factors, including, among other things, the following: with respect to the announced combination with Mallinckrodt, necessary governmental and regulatory approvals, satisfaction of closing conditions and shareholder approval; changes in competitive, market or regulatory conditions; changes in legislation or regulations; global political changes, including those related to the new U.S. presidential administration; our use of artificial intelligence and data science; the ability to obtain and maintain adequate protection for intellectual property rights; the impacts of competition such as those related to XIAFLEX®; the timing and uncertainty of the results of both the research and development and regulatory processes; health care and cost containment reforms, including government pricing, tax and reimbursement policies; litigation; the performance including the approval, introduction and consumer and physician acceptance of current and new products; the performance of third parties upon whom we rely for goods and services; issues associated with our supply chain; our ability to develop and expand our product pipeline and to launch new products and to continue to develop the market for XIAFLEX® and other branded, sterile injectable or generic products; the effectiveness of advertising and other promotional campaigns; and the timely and successful implementation of business development opportunities and/or any other strategic priorities. Endo assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws. Additional information concerning risk factors, including those referenced above, can be found in press releases issued by Endo and in Endo's public filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Endo's most recent Form 10-K and Form 10-Q and in Endo's final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, in connection with Endo's Form S-1/A.