Friday, specialty pharmaceutical company Endo Pharmaceuticals Holdings Inc. (ENDP) 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) 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) 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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