ENDP - Earnings call transcript Q4 2019

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Operator

Thank you for standing by and welcome to the Q4 2019 Endo International plc Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions] [Operator

like Park, conference Relations Senior Affairs. now speaker to and hand Laure today, Vice to would over the your Corporate I President, Investor

may You begin.

Laure Park

discuss you Thank joining and Good quarter thank you. us financial morning to our results. fourth XXXX for

today's Vice on Campanelli, Paul and Commercial Branded and of President Endo; and are CEO and CFO; business; Chairman, Vice our Ciarico, President Coleman, Chief Chief Executive call of President and Executive and Pat of our me business. Joining Generics President, Blaise Officer Barry, Vice Domenico Executive Commercial Officer Sterile

accompany We as webcast, have prepared online at a slide are material that presentation in well to as Investor section today's endo.com. presentation posted the and other

the remind I'd Reform you US and applicable described of and Canadian changes, Litigation that the and like XXXX filings. covered press Act uncertainties and our by the securities in subject to to under yesterday's are Private release laws US risks and Canadian statements Securities forward-looking made any management securities are in

In accordance from addition, measures by prepared may States different call, that not we measures that financial generally are the non-GAAP in this refer and to other may accounting in the companies. financial principles be accepted United course used non-GAAP with during of

GAAP of noted review reconciliation Investors call unless measures non-GAAP for with is the financial to Endo's release the on to are SEC financial encouraged issued Endo's The earnings Form press measures to most therein. today non-GAAP contained those reasons report current X-K otherwise comparable directly measures. prior furnished in for our the including

Paul. to I would like over call turn the

Paul Campanelli

chance issued review hope joining morning. us earlier you've the you company's Good Laure. had today's for for release Thanks, call. And this earnings thank I to a morning.

of week, board, March chairman as Blaise will my As board. the I become to and President a announced role X. will as effective member the in of me continue CEO succeed last Coleman

and his tremendous ability strategic initiatives friendship with my with I've Over to great for [Technical five developed critical Blaise, respect a Difficulty]. leadership and years working drive

our Blaise ability strategy. excited I on and deep business His in his of to and growth. board to when towards I transformation of phase say enterprise-wide to entire confidence financial execute next am reins have that to been critical the the lead hand over directors the I speak ability our to of behalf into multi-year acumen utmost Endo has its I

Blaise, say words. please few a

Blaise Coleman

has create much, set and a Yes. I'm With team become honored lead shareholder excited the in over Endo opportunities highly term. Thanks Thanks we Paul. board and of and to a and Endo its help to company long value to the opportunity. next the the talented potential to in combination us significant you for so that be phase. aspire the

Mark President, also over Chief of XX President Officer. experience. development Vice will as Development and I'm succeed Vice Financial corporate Executive currently Mark and Senior years and broad He Treasurer. Corporate Endo's very me excited, Bradley is has spent financial

You will the Mark to upcoming a in months. get meet chance

our it presentation. to I'll earnings Now, fourth review quarter to turn back Paul XXXX

Paul Campanelli

a Beginning for today's two, on brief Thanks, Blaise. agenda here's slide call.

with pleased this journey. multi-year progress our I'm slide Moving XXXX X, to in transformational

in CCH of positive the including for are Cellulite. investments specialty branded impact the seeing our and portfolio, areas We injectables growth sterile development of of core

XX% XIAFLEX year both grew for XXXX. In This by and specialty and Injectables products, portfolio XXXX, respectively and our Sterile led which full our XX%, VASOSTRICT, Branded segment flagship is double by digits. grew

across XX we generics filing PDUFA original FDA BLA The XXXX. business. We've accepted the of and launched for for products date US July and sterile a X, Cellulite our CCH have

products I'm exclusivity we've that to to them of the days innovative we've the proud on three the of Afinitor At and the deployed XXX end quarter, fourth market. with launched launched strategies bring Hatch-Waxman generic strengths. we of

our financial our meaningfully revolving improved the debt of maturities reducing by result and nearest debt our a As flexibility completed facility. and extending we by successfully credit refinancing March, amending in

used on by cannot a vasopressin decision X for bulk that a compounding generic manufacturer adrenaline We outsourcing FDA won ml. facilities favorable received be litigation and against we

it we And X State Track litigation, year, settled relates the settlement and Summit with announced of with cases Cuyahoga January to the in as $X.XX for And the we opioid Counties. Oklahoma of this the opioid million.

to be pending the can assurances resolution executing be constructive identifying be no there We and to a continue to litigation, will resolve but open on opioid path achieved. that forward

ongoing, while there are understand that I to note that prepared topic. to if important settlement remain necessary. many on litigate, this we is It are discussions questions

in we have and you at are further sure appreciate we what However, we'll comment can no say can limited time. I'm this

X. slide the Turning

see Total revenues a performance for expectations. will quarter. $XXX our adjusted and revenues our fourth you and million will snapshot EBITDA of through presentation. segment exceeded the Blaise of financial of adjusted our later You million walk EBITDA our in $XXX consolidated

X. fourth quarter slide to its segment XX%. growth The specialty our performances, strong with moving revenue Now, year-over-year of Branded with continued products of portfolio Pharmaceuticals

year, with portfolio full exceeded $XXX year-over-year Specialty the products all within strong driven revenue Products products specialty performance the execution portfolio. million This XX%. of across For growth by revenue was

of tends third strongest Our franchise of Based franchise for on of the and to compared to fourth in growth. fourth of growth the XIAFLEX quarter be XX% purchasing compared XX% had an quarter XXXX acceleration revenue quarter quarter historical XIAFLEX. the patterns, another The saw to outstanding quarter XXXX.

the in strong execution due continued commercial reflects XIAFLEX. behind outstanding the demand indications both Contracture Peyronie's Disease and investment the underlying Overall, and growth to Dupuytren's

Contracture. Disease of activation of the a rates and consumer awareness resulted have success disease I in double-digit am proud Dupuytren's both diagnosis and which increase in strategies, our for Peyronie's

saw the Based for indicating the rates low, Dupuytren's on indications. for XX% diagnosis and treatment we for XX% potential both growth by remain and diagnosis Contracture. future Despite Peyronie's an impressive Disease IQUVIA increases, these the for by rate increase data,

capabilities, CCH other leveraged along be as anticipated Cellulite our with the consumer These and future launch, capabilities, well condition commercial activation in awareness for will as products.

to year-over-year resulted and by X% in Pharmaceuticals Branded revenue was total decline was The in specialty established quarter offset primarily portfolio, competition the revenue a fourth in our portfolio. our year-over-year products The revenue. products generic due decline segment growth decline

full-year revenues portfolio, expect have the full-year to low in growth we XXXX the portfolio segment The strong approximately revenue our the of percentage to Branded revenue specialty products to guidance on to brands. contemplates and our further established XXXX to in Based XIAFLEX to specialty mid-single continued Pharmaceuticals underlying percentage digit grow and mid-teens pressure products XX%, XXXX low growth range. be erosion growth competitive

be our Cellulite in if quarter, expected an on the CCH on XXXX the Moving launch anticipated for year, date July on quarter important slide approval and to third PDUFA fourth X. our with X will product approved. based

our for long-term aesthetics critical and of as beginning for our progress building CCH understanding to preparing as awareness on team. commercial medical of commercialization. success momentum target Cellulite the will XXXX, by prepare we In XXXX, we to made as this continue significant relationships, well In and build our for we consumer build refining

plan leader professional standpoint, we conferences attend a XXXX. and opinion advisory key XX a healthcare and From of to number in approximately boards

from We develop will use these insight strategy. refine events our to and the

experience us optimizing our injector sales building launch the in leadership training readiness. the enables programs, ways prudent investments, will over be XXXX. physician in hired This with while sales in several to still Early XXXX force focus on

implementing injection continue techniques. focus From direct-to-consumer a studies, consumer will HCP ongoing to and on generation campaigns and dosing we data be clinical including we standpoint, will and condition awareness and activation durability,

with XXXX fourth slide growth revenues Turning X, to continued XXXX. continues our of and of quarter in to quarter was the segment Injectables to deliver growth in XX% This driven of the VASOSTRICT compared performance by Sterile fourth strong ADRENALIN.

full revenues $X Sterile billion. exceeded Injectables For segment year, the

Growth fourth in quarter to in the million the revenues volume increase of $XXX and was VASOSTRICT VASOSTRICT were due to compared a in XX% period price XXXX. modest XXXX, growth. same

revenue in prior primarily was compared by volume. XX% up driven $XX the quarter, same ADRENALIN the million period year, in the to

high-teens expect Sterile Injectables to revenues growth reflects revenue percentage revenues on during grow percentage year. the in by impact XXXX certain pressures to anticipated range, we mid forward, with Sterile range. Looking XXXX The the of range competitive grow expected products to Injectables digit the VASOSTRICT mid-single low to

Pharmaceuticals same to XXXX by the of the was period slide of segment compared pressures Generic on reflects certain in for quarter during primarily decrease product the revenues anticipated benefit to X, which Turning products, key the fourth partially the this segment launches. on our competitive in impact offset

five the products. we launched fourth quarter, During

[Technical including Keeping that The colchicine entrants. the high generic active for competition Generic tablets, remains percentage. environment full-year to dynamic, products, we of authorized XXXX reflecting Pharmaceuticals competitive the the decline new and mind, revenue relates the expected by as generic assumed level a guiding decline before, market Difficulty], driven the in Pharmaceuticals in on pressures we've noted segment Colcrys. which On of are is Generic primarily mid-teens to in

the the that assumes weighted second Additionally, are year. of of towards half the XXXX more new timing product guidance launches heavily

of among reflects, competition performance to our ongoing nine, United the on our the Difficulty] [Technical segment Pharmaceuticals International impact Moving things, outside of generic slide States. other

Canada, primarily the expect full-year XXXX, the For in range. to are International decline revenues, we by high-teens Pharmaceuticals percentage which

to X, quarter this the approved, XX, Turning XXXX. the much And On to CCH for Cellulite, but our we we I earlier, covered plan to of PDUFA We've few XXXX. focus in our is slide to a diverse shift items. want of point pipeline. product fourth date to launch July if

data populations, technique, rollover development in on generation on durability. plan, as several responses patient focused as of part our in well have injection As studies target world we CCH dosing, and studies real

plantar adhesive initiated the capsulitis. we've fibromatosis of point, this At for XIAFLEX programs development treatment and

expansion label study on physicians. volunteers, We clearance work will are our which help Phase and running I vasopressin clinical plasma healthy PK believe in advance further currently a of we

products and including Sterile year-to-date, We Carafate. and plan to launch XX to segments, the oral suspension, International generic XXXX Injectables, four within the in have launched products sucralfate authorized Generics of XX

as [Technical supplemented launching Our We third Injectables care based differentiated first with which (X) such Nevakar the in relationships strategic product late will XXX(b) our hospital five is anticipate potentially Nevakar, products. XXXX. and Sterile provide by pipeline Difficulty] parties,

of future or The disclosed bottom shows our table of on some opportunities. key first-to-market XX the slide first-to-file

XXXX Blaise me let further company's discuss call and results to to over full-year financial the Blaise? financial the guidance. turn Now,

Blaise Coleman

Thank you, Paul.

on will see earlier, non-GAAP quarter First, snapshot you'll and XX, and results. not that I review revenues covered fourth company segment the of again. Paul a financial GAAP slide so

loss had GAAP from a from period loss a in quarter XXXX. of $X.XX quarter loss diluted GAAP XXXX. of a in per the fourth to operations XXXX in the of continuing $XXX million the continuing same operations operations quarter loss GAAP we to of million during $XXX from continuing per of share fourth $X.XX was in compared the basis, compared On share

XXXX in from to operations fourth comparable of was On fourth net quarter compared adjusted $X.XX quarter income basis, share continuing million. continuing to fourth was diluted per $XXX operations from an XXXX quarter million adjusted quarter $X.XX continuing Adjusted fourth adjusted $XXX income from income XXXX. operations in of

full-year a XXXX guidance. Slide Endo's financial of summary XX provides

billion $X.XX to the expect billion, diluted billion $X.XX to revenues range the total adjusted of in and to We EBITDA adjusted $X.XX share XXXX of per billion range $X.XX the in income in of net $X.XX $X.XX. range

will There are XXXX you considerations as that several guidance. review I about think

competitive events Sterile are several in portfolio. that launches Injectables the of implies our Branded the segment decline products branded midpoint of expected and XXXX of our primarily of implied Pharmaceuticals reflects to Pharmaceuticals range our established and our percentage the products portfolio half key XXXX specialty digit our timing growth our Generic our by the the compared This continued of a low-single decline is significantly driven second decline First, product guidance products the skewed expected revenue. expected primarily by International for offset decline segment, towards XXXX. segment, revenue segment This Pharmaceuticals new and expected in anticipated our

Sterile value We spend. management adjusted our Injectables investments XIAFLEX invest new in opportunities, is in long Cellulite strategic product to these commercial portfolio launch, for reflective in the our growth, CCH as in the we funding Endo we investments believe development move term new invest our with areas and guidance generate the long-term our as of Secondly, our an core lifecycle for will that of commitment forward. of increase EBITDA

And guidance and diluted adjusted adjusted finally, per legal operations, our from net share adjusted opioid-related XXXX EBITDA expenses. for operating continuing income exclude expenses

guidance. adjusted on compatibility also XXXX slide opioid-related EBITDA EPS for the with legal adjusted presented expenses XXXX XX purposes note excludes Please comparable and that

Full-year is guidance to margin the XX% on company's following XXXX XX%. approximately of adjusted based assumptions. The gross

generics. assumption margin gross adjusted authorized XXXX from primarily margin adjusted a shift in in sales Our mix, reflects midpoint versus gross including a reduction revenues

expect of earlier. for core in between be and We mentioned of operating term areas investments long revenues. expenses reflects assumption continued XX% XX.X% adjusted our growth our to the This

expense interest to $XXX million adjusted approximately expect X$XX We million. of

effective adjusted In be terms we rate, effective XX.X% tax XX.X% XXXX our adjusted of our tax in to range of to rate expect range. the

as heavily adjusted Although earnings due revenue, consistent half reflects XXXX purchasing branded adjusted second half weighted not we specific the be the towards new revenue do and of specialty expect to provide expected our of of impact we with per expected revenue as guidance, higher business. the to product quarterly the XXXX, more XXXX The patterns the EBITDA of share launches, total adjusted XXXX timing split historical enterprise cadence. and expense in operating well second

anticipate corporate-related In terms timing quarter in highest expenses. with XXXX, of due the be to consistent adjusted first XXXX, our quarter we of certain operating expenses, mainly the of to spend

the expect adjusted effective We tax to above to estimated the first adjusted quarterly jurisdictional range be of rate effective tax rate quarter well XXXX rate, mix. due our highest full-year

the XX, previously and discussed. slide to a guidance Moving this segment product-specific summary of is

Advancing the up XX to slide financial wrapping and discussion.

expenditures. from adjusted capital cash debt than we unrestricted is what to flow prior November. guided favorability higher of in resulted For higher XXXX, we to and the EBITDA full-year which had lower-than-planned million, payments $XXX This

a $X.X of times. leverage debt X.X ended XXXX approximately with cash of adjusted to unrestricted approximately EBITDA We and net billion ratio

look we $XX range expect legal million. related product liability assumes settlement mesh previously and in to cash payment opioid-related $XXX payments, settlement in previously including mesh payments and $XX $XXX antitrust qualified into for and TRT estimated approximately we settlements. expenses; XXXX, approximately flow approximately announced to in This settlements; forward fund of $XX LIDODERM payments million legal announced the to debt and the As prior to million million other the in expenses million

Paul. it over Now, back let me turn to Paul?

Paul Campanelli

Blaise. Thank you,

Finally, moving slide and XX presentation. concluding today's to

our we've any to strategic constant. As Endo. with executed transform evolution Since journey, plan is multi-year against XXXX,

been I'm executing all which led our productivity operating despite a on business, laser our drive and has as members to culture of team we've Over our and hard grateful focused strong environment. commitment strategy leverage three work. our years, last simplify a the to for improvements differentiator, challenging performance their external to

And am that Blaise chairman my I honored as board, we leads I be I for involved become. of the proud to started, I'm company in its journey. Endo's as I'm company we've reflect he forward that, As on in the the where of excited on transformation continue can future. role actively

me now over manage period. Let Laure turn Laure? to call our to the back question-and-answer

Laure Park

get we In limit to have Thank to first it. time, allow question? interest initial us you you, in of questions Can possible, your appreciate many the Paul. if could would we as the as

Operator

question first the from Your Gilbert SunTrust. comes line Gregg of from

Please your question. open. ask is line Your

Gregg Gilbert

first aggressive forward to in congrats programs you going I announced. going if question. And Thank and wondering you maybe development can you. talk on indications bit more Good a generally additional it's to ask programs of your those behavior of Two-part XIAFLEX associated about guys, or some less the And where comment you focus. and about incoming you're a slower morning. both outgoing. versus how with past explore want to timelines been

And specifically then, Paul, you I comment you know litigation. can't opioid on said

the or tend of others case to of try seems a to traction to tool It I'll settlement that talks more involve maybe Mallinckrodt, on the ton bankruptcy. the So, of cash gotten of have and use ask generally. for that either seem Purdue

with generally. do That's question at flexibility my liability to for you I guess attempt those deal of companies without either things? this see my it asking So, more is,

guys. So thank you,

Paul Campanelli

going Blaise thank quarterback to pass over Blaise. And actually Great, is going for us. it this you. to to I'm

Blaise Coleman

Sure. Gregg, two thanks for those questions.

both in are the investment adhesive noted, asset. about And the really excited talked and and opportunities So, incremental capsulitis management plantar out into lifecycle we to we're move and you really XIAFLEX, about came today of fibromatosis those that forward. as our promising

also some adhesive in plan and to move then going XXXX. we're plantar proof to Phase is sometime on capsulitis, into work What And of we plan going do do XXXX. to to the that do fibromatosis II in concept with we're

standpoint. from are timeline a So, that's where we

In we've to our opioid and terms this question, what been on defend at resolution of fairly open constructive stage, strategy is, clear which Gregg, a is your remain needed. to as

about We the with tools to available be may of strategy we may needed, we that our know terms feel In people, deal what is. that. be what good are that have options not to and flexibility needed, our what

And move forward. exactly so, going we're to how that's

Gregg Gilbert

thank Okay, you.

Operator

the RBC Your line Stanicky Markets. comes Capital from next question from Randall of

open. is line Your

Randall Stanicky

wanted start VASOSTRICT. both. you Blaise, I to on congratulations again to

been volume well is What's pretty guidance you'd You putting high guys really have to driving previously mid How quarter, fourth much versus talked Because price? about teens. strong XX% the XXXX is thought penetrated I for growth, in that? up being there.

to potentially, follow-up get could think when the is, FDA products that? this the a through Thanks. trial you you I there? in then, associated that follow-on conference your have with And up May. coming then, with Can Eagle, And through timelines any IP settlement and you month walk

Blaise Coleman

for thanks two Randall, questions. those

is not QX based you QX, see in when VASOSTRICT, at do on actually QX, driven us. spikes from the to sequential That's We for look volume by of terms events. it In volume. in uncommon growth just

is change increase So, a of seeing. you're sequential terms that volume driven in

our of in and well guidance primarily a digits. in for annualization price year-over-year standpoint XXXX. you're but of volume is driven, terms XXXX, is from our growth In that as What is the there increase price seeing price the low-single there

also in first our quarter. getting a And so the we are took some that We mix price. on recently and that's how contracting, impacting mix just net favorable price the action our of also, contracts

VASOSTRICT. you're terms what seeing that's of So, in

May. Eagle and a early In mandatory is then, terms March. we we mediation And of the other hearing have that question timeline a process, trial your on scheduled have in

the timeline on that's So, that.

comment question your And Paul, on, you on the that follow on want quick? real to

Paul Campanelli

here. Paul it's Hi, Yeah.

new to Just it's a not product. clear, be

study. years lot PK clinical product That's You're fact I trial, the trial. a the the probably running announced over referencing we've safety development. a We've that of about that a Phase we're learned

the in physicians goal. coats to there's can way product, – and the successful, can clinicians if which in if we going the a that, use that's way improve existing So, be we if

PK happening the study. what's other that's with So,

So, thanks for the question.

Operator

Markets. line of BMO of from Nachman Capital comes question the Gary next Your

open. Your line is

Rafay Sardar

on It's does potential competition product Amphastar how incorporate Gary. morning. think And if Amphastar receives the for of should for rate erosion from what To in sometime Good the Rafay Hi. timeframe? your that extent we ADRENALIN? April approval for guidance about an

Blaise Coleman

Great, the thanks question. for Yeah.

normally around contemplated we have will a ADRENALIN see from competition XX of don't ml. the specific standpoint different on could guidance we you XXXX, products. tell we comment in I So, for that, on terms scenarios what

the all. of want if at that terms your question, of in not Domenico, then, you And sure part to on comment I'm second

Domenico Ciarico

Yeah.

how timing standpoint, sure from In terms second out. understand a CRL. of play the we there's competitor, not going that we're to a But that's

Blaise Coleman

Thank Great. you.

please. question, Next

Operator

Next Fadia Leerink. of comes Ami from from line question SVB the

Eason Lee

morning. Eason Thank for is question. This taking Good Ami. Hi. for on you our

the talk you on maybe shaping Just marketplace up segment, shifts can generic in XXXX. Any the XXXX? versus how about seeing you're meaningful

And notice that you notable some will in of And half the weighted second have to then, of also that AG segment we – some annualize XXXX generic launches sizable in seemed will there's XXXX. XXXX. launches sort the for indicate

that So, Thank 'XX, seems just of decline mid-teens can with level but when you. curious if it a basis? on this consistent sort guidance a may set slight increase in second at with imply you the erosion year-over-year half looking

Blaise Coleman

Thanks the question. for Great.

this Domenico. set and I'll so, over turn And up then to

for what and industry as we're is we always industry, seeing are this some pricing. across But stabilization the about, we've the in specific. Just the of in in portfolio talked context, terms really industry, seeing generally

those in full to the seeing look have year else that competitive now at of competitive we Domenico, XXXX XXXX, terms when to anything what due revenue add Endo to expect some to in so, we impacts competitive potentially seeing? And we're between are that our of events. in events you the the we and some to year-over-year events right had

Domenico Ciarico

I that's right. think

Blaise Coleman

Great.

please. question, Next

Operator

Morgan. Schott question from from JP next Your Chris is

Chris Schott

much. very thanks Great,

of we here, maybe low in mentioned here. think for rates. you the just XIAFLEX, Just of growth in you're two you actual seeing the about rates penetration But terms XIAFLEX think you first where of durability can us of terms I two stand questions diagnosis update when the and Maybe type on still indications? diagnosis

XXXX done beyond XXXX, bit on And When of seems up of we step a work like OpEx the and launch. thinking then, get expenses? XXXX there's CCH quite question was spend for spend It full kind mode? about ahead level in being my CCH second another much. OpEx. is we proxy Thanks kind launch should of as be in that reasonable think of we about this a of you're very out Or to

Blaise Coleman

I'm on the Chris. to going question. over Thanks, Great. take to second the XIAFLEX it one. I'll Pat turn

Patrick Barry

Yeah. Thanks, Blaise.

rates The the to As X% you both about rates X% XX%. both the low. indications for indications. in range for Peyronie's cited, diagnosis relatively for treatment are are They're

penetration actual is decision Our post approaching XX%. to treat

So, it XX% between and fluctuates XX% on Peyronie's indication. the

treatment XX%. surgery the about indication, bit a rate Contracture penetration the about the XX% into rate. Dupuytren's falling higher, It's treatment XIAFLEX the mix. And is a is For with

of penetration. we're patients where trying that's more activate our upstream, to play. strategy the so, trying comments, to activation diagnosed. And in improve And Paul into And comes said getting overall both as we're consumer his market course,

all – for so, reasons, And growth over that really nice of we the last believe we've seen couple driving it's those are the those years.

Blaise Coleman

going of go-forward and terms specific on any opportunity-driven Injectables if the ultimately management XXXX. really around portfolio those comments OpEx to it which And, Sterile shaping do Chris, you the or side to drive to further us put business. our for that that like, decisions be means ourselves line there required some around are we're opportunities in that tell I important opportunities are things development lifecycle around of over is always your whether what better and to give in in time, to of look a top would investments the are that, EBITDA going of are What grow and be Cellulite the commercial to not in position make might anything decisions, XIAFLEX we or CCH that beyond

us. be we will and in of front opportunity-driven So, in decisions those that at what terms have time of portfolio

Thanks.

please. question Next

Operator

Samimy from from is question Annabel Next Stifel.

open. is line Your

Nick Doyle

for question. Thanks our taking for Hi. on Nick This is Annabel.

quick Just ones. two

you cellulite the either recently. you seen do And of the you. products market aesthetics developments and you CCH, how then, have we envision this CCH early in next on positioned year year? categories the recent Thank So, in terms broad investment materializing, market? perhaps one, benefit major comment Could across seeing are for in in some or from growth Nevakar

Blaise Coleman

two those questions. for Thanks Great.

Nevakar So, on market and the I'll the for take profile, question, that Pat CCH the and turn to question, that. Domenico then we'll

Domenico. go So, ahead,

Domenico Ciarico

of terms really for are products believe the looking excited the table. that. to our what set will Nevakar that in that partnership well they're opportunity, about us for Nick, bringing ready-to-use we're We up customers and

our we upcoming this launch mentioned, and Paul that. As really first year we're about have excited

Patrick Barry

Yeah. market for market It's the with very a cellulite, disruptive question is know an market, very on potentially And we just treatment very at to thanks into the body by way look contouring for for injectable the we're of attractive first your the we general aesthetic And an consumers as us. received And a the it, all, medical well opportunity potential very injectable in physicians, of have CCH. area because is space well. all cash first market. that's and the received very marketplace the by as converging the well that our on view we

we provide come and offering. first growth really attractive two in potentially could you that areas see the very So,

challenges of In in some terms of there's innovation, lack really of a terms been innovation.

So, that seeking a lot having are And this treatment can offices, be women bring therapy population, we're an of about from medical into who like patient not aesthetic only but this addressable existing more first to injectable. we a patients excited gateway feel kind. there's of potentially

excuse me. million be potentially product could injectable – women first of believe we cellulite, so, X who an candidates or that be for And upwards for for could it CCH

Laure Park

please. question Next

Operator

Prasad Barclays. is from Balaji question Next of

Balaji Prasad

And morning. the questions. for thanks Good Hi. taking

when think a in Firstly, ahead, from a want about the strategy? you think I strategy company that you to couple going major we change Blaise, for you there me. shift expect questions Blaise, is to can of would see congratulations. anything that that the think Maybe

around you strategic setting your [indiscernible] also the of can guidance for GPO recent Injectables, the does details dovetail year? Sterile talk channel on and a about in into comments commentary specifically Secondly, more and increasing how the this being behind your products hospital

Lastly, flat generics, any that the major from baked Thank the could segments you. we launches margins in launchers, And on disclosed side, in context ones the margins do other see gross the for guidance? year into have generic a basically? in apart the the of the of you slide one-off you gross have

Laure Park

question. that's Balaji, long one

Blaise Coleman

Yes.

to So, our All to best we're going tackle right. it.

question. up what the I'll to Injectable strategy with margin channel gross going wrap and Sterile is So, on some start of doing the then, on a we're out And that. question. with strategy help little your we'll take GPOs bit let's try then around and And hospitals. in the to Domenic

strategy, in change just time, terms reassess strategy, this role into in So, often is in terms a for normal of me we allocation have the to no for of point going recurring that a that the with how We at on very be stepping listen, we There capital basis. company do priorities. cadence look Paul. in of cadence

us make communicate forward move assessments, for differently, we if do as So, we anything there's those and to we we'll that when make decisions. those

priorities. XXXX us clear do the in that's some of very could future that our in now mid of to the goals for we right I about to have more to front focus There's is and be our nothing want important But both our XXXX. we long-term

forward let our around Domenic me bit the channel. hospital to going turn that, So, over with help strategy around a little GPO it to

Domenico Ciarico

to of to us access for system with hospital to our great both our is health decisions. channel and really terms talk system, retain get one that, relationships GPOs GPOs, one strategy, the you formulary customers. they our In contracting leveraging like health you system to provide about when and vehicle health buy What and talk products market a visible we

portfolio that particularly is like that our shaping. would the So, way we channel,

Blaise Coleman

launch on in terms your question, comment generic not then, there. so of specific going we're And to are products that

launch for really about, attractive we that couple feel in products of we opportunities good XXXX plan have We a to that really there us.

a I Do your on gross margin And then, if it margin, I – segment. in going that for have potentially forward right? have that terms right, question around I flat gross was there of think

Nick Doyle

Right.

Blaise Coleman

Yes. okay. Yeah,

going of much margins. dependent. is we're we've that on of in about, to But comment in segments profile as segment gross terms not talked So, other anything portfolio terms listen, any going forward it again, very for or

get big of can margin looks will of to our we what we profile mix, from competitive the be It front. As the what standpoint. a move out seeing what we're on a gross dictator forward, pipeline, opposite product like

question Next please.

Operator

from Next from Amsellem Piper question David Sandler. is

David Amsellem

Thanks.

some us potentially least of and initially doctors place. And specifically that on in have questions wanted on you're to some initially. on the at So, I ground had targeting peak? sales total the reps that to you're at some then peak, on going be and CCH number infrastructure how additional many to Give get going you're them, putting color detail at

your give vis-à-vis And then, you every or also necessarily. is a other injectable a months can products? into filler window aesthetic some thinking launch, This in where are you us on Botox like few regarding coming the a not pricing

different So, it's kind a of paradigm.

So, for should think and how pricing in vein, cellulite? Thank that you. CCH about we

Blaise Coleman

Yeah. and bit questions turn Thanks, talk over terms I'm around Pat going prepared also to a it to product and little of us then David, in on being to we're about to CCH. for question durability. those successfully launch this what doing pricing your

Patrick Barry

Yeah. Thanks, Blaise.

comments, hiring two mentioned Paul in as waves. his we'll be So, in

in all XX and ground between in, able customer-facing sales managers the also opportunity customer corporate address to the accounts sales activities. having be professionals having we'll be XX and and so, in, on and of the somewhere between all supporting neighborhood support, And to and

pricing terms at pricing, obviously communicate to of we're point. going not In this

We range opportunity that there's pretty think for injectable, we that contouring within consistent, have value body an the space, as an looking understand we we're see creation. a at. But do been is I that opportunity,

of wanting communicating closer from a been be price able as terms think of price that And consistent way to we'll to allows both for plan. to I specific as launch, adoption in physicians. wide-scale consumers get course, be we a well as we've in

Laure Park

please. question Next

Operator

Raymond with Elliot from is James. question Wilbur Next

Your line is open.

Vikram Arun

morning. ones here just the on Thanks Elliott. quick I Good questions. financials. Vikram Arun is had for for Hi. This two taking on

The between first on Thanks. is, expectations possible and the course trend to those rough maybe over any could how you EBITDA cadence year? the SG&A the might over course And items EPS would of it your year? guidance be R&D provide a within provide and second, OpEx and overall the line of split

Blaise Coleman

those for Thanks Great. questions.

of what cadence, terms in back [Technical So, refer about talked Difficulty]. we to

half second year. higher of higher articulated of were. and drivers versus the what year those a of EBITDA sort half sort the see of the will EPS first in of We We the the

the is therefore, percent is of of In higher of than that as been And our where kind I the SG&A you terms and number. would between R&D you into can this sales. back year historically what R&D SG&A, tell then, slightly breakout a just we've

Next question please.

Operator

Next question Morgan Risinger is from with the David Stanley.

Charlie Yang

I Hi. have This question. two on is for the just Charlie Thanks taking here. David. questions for

developments to The the to with product XXXX? to and first provide relative ADRENALIN? is new question XXXX VASOSTRICT respect for Amphastar, is, please outlook the And Thank you. launches you watch is, could on update the litigation second in what

Blaise Coleman

Yeah.

VASOSTRICT new product a I on is don't just the guidance, out revenue in was we And to in trial mentioned So, new earlier actually there, of scheduled in your it things and look March have for May two think then this timeline mandatory then the which year. second question, is that hearing of there's mediation a we And terms provide specific product guidance. we Eagle.

question. Next

Operator

Instructions]. [Operator

Laure Park

no there's further If Paul? questions,

Paul Campanelli

Thanks, Laure.

a Blaise and just just second. I just got so just of this next done my Counsel, take with tremendous, us address CFO. proud I'm great going Domenic, to Matt just job. a proud move remarkable the want maybe our Chief Bradley, great person. here to for to entire guys, Laure, over congratulations you've of I is have how remarkable, thank phase He year, year-and-a-half. my Maletta, as to So, General I organization. am forward do life, everything Mark step you to job. going as Pat things. is – I team Legal that, our next last Officer, first. for be maybe to I great of maybe say

hands of analysts, remarkable here. the I'm so everybody in team are we this and proud leaving research Just to

that that, with with Blaise say appreciate leadership have just I interest – look forward We and look forward we our So, of of team, we move to providing we you entire behalf your to and continued as Endo. on updates forward. support

Bye-bye. Thank us call. day everyone. today's on a you, everyone, for Have great joining

Laure Park

Bye.

Operator

concludes call. participating. our you Thank this gentlemen, conference for and Ladies

You now may disconnect.

Endo International (ENDPQ) 26 Feb 202019 Q4 Earnings call transcript