Oct. 29, 2009 (PR Newswire) -- CHADDS FORD, Pa., Oct. 29 /PRNewswire-FirstCall/ -- Endo Pharmaceuticals (Nasdaq: ENDP) today reported financial results for the third quarter of 2009.

Total revenues during the third quarter of 2009 increased 14 percent to $361 million compared with $317 million in the third quarter of 2008. Net income for the three months ended September 30, 2009 was $49 million, compared with $66 million in the comparable 2008 period. As detailed in the supplemental financial information below, adjusted net income for the three months ended September 30, 2009 was $74 million, compared with $79 million in the same period in 2008. Reported diluted earnings per share for the three months ended September 30, 2009 were $0.42 compared with $0.55 in the third quarter of 2008. Adjusted diluted earnings per share for the three months ended September 30, 2009 were $0.63, compared with $0.66 in the same period in 2008.

Total revenues for the nine months ended September 30, 2009 were $1.07 billion, compared with $913 million in the comparable 2008 period. Reported diluted earnings per share for the nine months ended September 30, 2009 were $1.01 compared with $1.45 in the comparable period of 2008. Adjusted diluted earnings per share for the nine months ended September 30, 2009 were $2.04, compared with $1.74 in the same period in 2008.

($in thousands,
except per
share amounts)
Third Quarter                Year-to-Date

2009      2008  Change        2009       2008  Change
Total Revenues  $361,027  $316,768    14%   $1,069,435   $913,200    17%
Reported Net
Income           49,422    65,994   (25%)     118,488    182,650   (35%)
Reported Diluted
EPS                0.42      0.55   (24%)        1.01       1.45   (30%)
Adjusted Income   74,251    78,724    (6)%     239,141    219,638     9%
Adjusted Diluted
EPS               $0.63     $0.66    (5)%       $2.04      $1.74    17%

"This is an exciting time for Endo Pharmaceuticals," said Dave Holveck, president and CEO of Endo. "Our core business continues to exceed our expectations; we have successfully launched Valstar(TM) for bladder cancer this quarter, and we are planning for the launch of our long-acting injectable testosterone product, which will now be called Aveed(TM). 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."

2009 Financial Guidance

The company is raising guidance for 2009 annual total revenues and adjusted diluted earnings per share. The company now estimates total revenues to be between $1.440 billion and $1.465 billion. The company also now estimates reported (GAAP) diluted earnings per share to be between $1.41 and $1.47, and this EPS increase 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(TM). Adjusted diluted earnings per share are now estimated to be between $2.67 and $2.73. The company's reported (GAAP) EPS guidance does not include any estimates for potential future changes in the fair value of contingent consideration or for potential new business development transactions. These items could have a significant impact on the actual reported diluted earnings per share in the future. A reconciliation of GAAP to non-GAAP calculations is attached to this press release.

Third Quarter Highlights

On September 3, VALSTAR(TM) became commercially available for the treatment of a distinct form of bladder cancer. VALSTAR represents a new treatment option for patients who may otherwise have exhausted all other FDA-approved treatment alternatives.

On September 24, Endo announced the final results of a cash tender offer by one of its wholly owned subsidiaries, for any and all outstanding Ledgemont PhaRMA(SM) Secured 16% Notes. This offer resulted in Endo's acquiring $48 million of the $105 million aggregate principal amount that was outstanding and reflects the company's ongoing efforts to manage its capital structure.

Selected Product Review

PAIN PRODUCTS

LIDODERM®: For the quarter ended September 30, 2009, net sales of LIDODERM were $193 million comparable to $194 million in the same period a year ago. For the nine months ended September 30, 2009, net sales of LIDODERM were flat at $560 million compared with $560 million in the same period a year ago.

OPANA® ER and OPANA®: Combined net sales for the OPANA franchise increased 42 percent to $59 million for the third quarter 2009 compared with $41 million in the same period a year ago. For the nine months ended September 30, 2009, combined net sales for the OPANA franchise increased 30 percent to $167 million compared with $128 million in the same period a year ago.

FROVA®: Net sales of FROVA were $15 million for the three months ended September 30, 2009 compared with $14 million for the same period in 2008. Net sales of FROVA were $42 million for the nine months ended September 30, 2009 compared with $41 million for the same period in 2008.

Voltaren® Gel: Net sales of Voltaren Gel were $20 million for the three months ended September 30, 2009 compared with $10 million for the same period in 2008. Net sales of Voltaren Gel were $57 million for the nine months ended September 30, 2009 compared with $11 million for the same period in 2008.

ONCOLOGY/ENDOCRINOLOGY PRODUCTS

SUPPRELIN® LA: Net Sales of SUPPRELIN LA for the third quarter were $8 million. For the period from the acquisition date of Indevus until September 30, 2009, net sales of SUPPRELIN LA were $18 million.

VANTAS®: Net Sales of VANTAS for the third quarter were $6 million. For the period from the acquisition date of Indevus until September 30, 2009, net sales of VANTAS were $14 million.

OTHER BRANDED PRODUCTS

For the third quarter of 2009, net sales of other branded products were $4 million compared with $3 million in the same period in 2008. For the nine months ended September 30, 2009, net sales of other branded products were $12 million compared with $8 million in the same period in 2008.

GENERIC AND NON-PROMOTED PRODUCTS

For the third quarter of 2009, net sales from the company's generic products were $23 million compared with $22 million in the same period in 2008. Net sales of Percocet® were $31 million for the three months ended September 30, 2009, which is comparable to net sales of Percocet® in the same period in 2008. For the nine months ended September 30, 2009, net sales from the company's generic products were $96 million compared with $68 million in the same period in 2008. During the first half of 2009, the company benefitted from a market dislocation in the supply for certain generic products. Market conditions have now essentially normalized for these products. Net sales of Percocet® were $96 million for the nine months ended September 30, 2009, comparable to $97 million in the same period in 2008.

Conference Call Information

Endo will conduct a conference call with financial analysts to discuss this news release today at 9:00 a.m. ET. Investors and other interested parties may call 800-798-2884 (domestic) or 617-614-6207 (international) and enter code 12555118. Please dial in 10 minutes prior to the scheduled start time.

A replay of the call will be available from October 29 at 12:00 p.m. ET until 12:00 a.m. ET on November 4 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and enter code 66458151.

A simultaneous webcast of the call may be accessed by visiting www.endo.com. In addition, a replay of the webcast will be available until 12:00 a.m. ET on November 4.