Endo Health Solutions Inc. (ENDP) said Wednesday that it has identified annual cost savings totaling about $325 million, which includes reducing headcount by about 15% worldwide, streamlining general and administrative expenses, optimizing commercial spend and refocusing R&D onto lower-risk projects and higher-return investments in generics.
About $150 million of these savings are expected to be realized in calendar year 2013, with the full $325 million run-rate achieved by mid-2014, when compared with full year 2012. In 2013, the company expects to record certain cash implementation charges of about $60 million associated with those savings, mainly resulting from severance payments.
The company also said it is evaluating strategic alternatives for its HealthTronics business, which provides urological services, products and support systems to various healthcare providers in the U.S.
Endo also announced plans to explore alternatives for its branded pharmaceutical early stage discovery platform, which is made up of several drug discovery candidates in multiple therapeutic areas.
The company said it will continue to evaluate the performance of its remaining businesses so that their respective cash flows and returns are consistent with its investment criteria.
In conjunction with Wednesday announcement and reflecting a recent FDA decision with regard to Opana ER, Endo lowered its full year 2013 financial guidance. The company said it now expects total revenue of $2.65 billion to $2.80 billion, earnings of $1.49 to $1.79 per share and adjusted earnings of $4.10 to $4.40 per share. Previously, the company expected total revenue of $2.80 billion to $2.95 billion, earnings of $2.10 to $2.40 per share and adjusted earnings of $4.40 to $4.70 per share.
Analysts currently expect the company to earn $4.27 per share on revenue of $2.80 billion for the full year 2013.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.