Endo Reports First-Quarter 2025 Financial Results and Reaffirms 2025 Financial Guidance
PR Newswire
MALVERN, Pa., May 7, 2025
-- XIAFLEX$(R)$ revenues grew 7% compared to first-quarter 2024 -- The Company reaffirms 2025 revenue guidance of $1,775 to $1,860 million and adjusted EBITDA guidance of $620 to $650 million -- Combination with Mallinckrodt expected to close in second half of 2025
MALVERN, Pa., May 7, 2025 /PRNewswire/ --- Endo, Inc. ("Endo" or the "Company") (OTCQX: NDOI) today reported financial results for the first quarter ended March 31, 2025.
"As we advance Endo's transformation with two major transactions announced in March, the Company remains focused on executing our growth drivers, as evidenced by strong XIAFLEX(R) performance in our Branded Pharmaceuticals business and the advancement of our Sterile Injectables pipeline," said Scott Hirsch, Endo's Interim CEO. "As a result of our first-quarter results, which met internal expectations across all segments, we are reaffirming our full-year 2025 earnings guidance."
ENDO FIRST-QUARTER FINANCIAL PERFORMANCE
(in thousands)
Successor (a) Predecessor (a)
----------------- -----------------
Three Months Three Months
Ended March 31, Ended March 31, % Change
2025 2024 2025 vs. 2024
----------------- ----------------- --------------
Branded
Pharmaceuticals $ 209,491 $ 200,796 4 %
Sterile
Injectables $ 71,271 $ 98,234 (27) %
Generic
Pharmaceuticals $ 99,084 $ 103,317 (4) %
International
Pharmaceuticals $ 12,987 $ 17,160 (24) %
Total Revenues,
Net $ 392,833 $ 419,507 (6) %
Net Loss $ (128,630) $ (154,230) (17) %
Adjusted Net
Income (b) $ 23,780 $ 131,415 (82) %
Adjusted EBITDA
(b) $ 99,049 $ 146,302 (32) %
__________
(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 first-quarter 2025 were $393 million, a decrease of 6% compared to $420 million in first-quarter 2024. This change was primarily attributable to competitive pressure across the Sterile Injectables and Generic Pharmaceuticals segments, partially offset by Branded Pharmaceuticals revenue growth.
Net Loss in first-quarter 2025 was $129 million, compared to $154 million in first-quarter 2024. This change was primarily due to decreased expenses related to the Chapter 11 reorganization process, partially offset by increased costs of revenues driven by non-cash amortization of inventory fair value adjustments and increased interest expense.
Adjusted EBITDA in first-quarter 2025 was $99 million, compared to $146 million in first-quarter 2024. This change was primarily driven by decreased revenues, lower adjusted gross margin due to changes in segment and product mix and investments in the Sterile Injectables manufacturing network, and additional investments in Sterile Injectables research and development.
Adjusted Net Income in first-quarter 2025 was $24 million, compared to $131 million in first-quarter 2024. This change was primarily due to the decrease in adjusted EBITDA coupled with an increase in interest expense.
SEGMENT RESULTS
Branded Pharmaceuticals segment revenues in first-quarter 2025 were $209 million, compared to $201 million in first-quarter 2024. This change was primarily due to XIAFLEX(R) revenue growth. XIAFLEX(R) revenues were $121 million in first-quarter 2025, an increase of 7% compared to $113 million in first-quarter 2024, primarily driven by volume growth.
Sterile Injectables segment revenues in first-quarter 2025 were $71 million, compared to $98 million in first-quarter 2024. This change was primarily driven by competitive pressure on VASOSTRICT(R) and ADRENALIN(R) vials. Additionally, during first-quarter 2025, the Company advanced its sterile injectables pipeline through increased adoption of the recently launched ADRENALIN(R) ready-to-use premixed bags and the completion of three FDA submissions.
Generic Pharmaceuticals segment revenues in first-quarter 2025 were $99 million, compared to $103 million in first-quarter 2024. This change was primarily attributable to competitive pressure on dexlansoprazole delayed-release capsules and several other products, partially offset by a 16% increase in revenues from lidocaine patch 5%.
International Pharmaceuticals segment revenues in first-quarter 2025 were $13 million, compared to $17 million in first-quarter 2024. This change was primarily attributable to the expiration of a license to distribute a product.
BALANCE SHEET AND LIQUIDITY
As of March 31, 2025, Endo had $370 million in unrestricted cash and cash equivalents compared to $387 million as of December 31, 2024. This change reflects the use of cash for interest expense, investment in working capital, taxes and expenses related to the previously announced corporate transactions.
RECENTLY ANNOUNCED TRANSACTIONS
Mallinckrodt and Endo Combination
On March 13, 2025, Endo and Mallinckrodt plc entered into a definitive agreement to create a global, scaled, diversified pharmaceutical industry leader. Under the terms of the agreement, Endo shareholders will receive a total of $80 million in cash (subject to possible adjustment) and will own 49.9% of the combined company. Mallinckrodt shareholders will own 50.1% of the combined company on a pro-forma basis.
The transaction is expected to close in the second half of 2025, subject to approval by shareholders of both companies, regulatory approvals and customary closing conditions. Mallinckrodt and Endo plan to combine their generic pharmaceuticals businesses and Endo's sterile injectables business after the transaction closes and to separate that business from the combined company at a later date. The planned separation would be subject to approval by the combined company's Board of Directors and other conditions.
International Pharmaceuticals Business Divestiture
On March 10, 2025, Endo entered into a definitive agreement to divest its International Pharmaceuticals business. The transaction is expected to close in mid-2025, pending regulatory approvals and customary closing conditions.
FINANCIAL GUIDANCE
Based on first-quarter 2025 results, Endo is reaffirming its previously provided financial guidance for the full year ending December 31, 2025. Guidance for the full year 2025 is based on Endo's current views, beliefs, estimates and assumptions. It includes the International Pharmaceuticals business and will be updated following completion of the divestiture. It does not include any potential impact related to future tariffs and trade policy changes, which the Company is unable to predict at this time. All financial expectations provided by Endo are forward-looking, and actual results may differ materially from such expectations, as further discussed below under the heading "Cautionary Note Regarding Forward-Looking Statements."
Current Outlook
---------------
($ 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 will host a conference call to discuss this press release today, May 7, 2025, at 8:30 a.m. ET.
The audio webcast may be accessed through 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
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