(RTTNews) -  Thursday, Endo Pharmaceuticals (ENDP: News ) reported a decline in profits for the third quarter primarily on charges related to Indevus transaction and higher expenses, notwithstanding a 14% growth in revenue.

Net income for the quarter declined to $49 million or $0.42 per share from $66 million or $0.55 per share during the comparable period year-ago. The company noted that the GAAP net income includes charges of $20,206 related to Indevus transaction and separation costs of $2,484.

Adjusted net earnings for the quarter declined to $74 million or $0.63 per share, compared with $79 million or $0.66 per share in the year-ago period. On average, twenty three analysts polled by Thomson Reuters estimated earnings of $0.65 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter increased by 14% to $361 million from $317 million in the third quarter of 2008. Twenty two Wall Street analysts estimated revenues of $365.33 million for the quarter.

Product-wise revenues from all the brands put together increased by 14% to $335.41 million from $294.35 million year-ago. Total generics revenues increased by 2% to $22.93 million from $22.41 million year-ago. Total royalty and other revenue for the quarter was $2.68 million.
For the quarter, the company's cost of revenues increased to $97.30 million from $71.02 million and Selling, general and administrative expenses increased to $139.92 million from $116.24 million in the prior year period. Research and development costs for the quarter were significantly higher at $59.69 million compared with $22.16 million a year-ago.

The company said that it is raising its guidance for the entire year 2009. Endo expects GAAP earnings per share to be between $1.41 and $1.47. The increased GAAP earnings per share is primarily due to changes in the fair value of contingent consideration associated with the Indevus transaction partially offset by the addition of milestone payments associated with the company's recent deal with ProStrakan to in-license Fortesta.

Adjusted diluted earnings per share are now estimated to be between $2.67 and $2.73. It now estimates total revenues for the year to be between $1.440 billion - $1.465 billion. Street estimates earnings of $2.71 per share on revenues of $1.45 billion for the current year.

Dave Holveck, president and CEO of Endo said, "We believe our third quarter performance, in conjunction with a solid outlook for the remainder of the year, warrants an increase in our revenue and earnings guidance. And we continue to actively pursue business development opportunities that will further diversify our top line in the years ahead."

To receive FREE breaking news email alerts for Endo Pharmaceuticals Holdings Inc and others in your portfolio

 1   2   Next Page