ENDPQ - Earnings call transcript Q1 2024

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Operator

Thank you for standing by. Welcome to the Earnings Conference call for Endo International plc presented by Endo, Inc. This call is being recorded.

If you have any objections, you may disconnect at this time.

to President, call Affairs. Investor like Park, to now Vice Senior Relations would turn over the Laure I and Corporate

may begin. You

Laure Park

us International plc. Thank all quarter morning. good financial to joining XXXX Endo you, first discuss for Thank results the and for you

CFO. today's and me Vice on Endo, Executive is call Joining Bradley, Mark Inc. President

in at We have as to and as International's Endo presentation are well financial MD&A, webcast. statements section today's prepared accompany a the posted online first endo.com. slide presentation, And Investors quarter that

This terms agreements. call of Endo, required under is the Inc.'s debt

plan is prior such, application Endo to streamlined financial reorganization Endo, the Substantially no had of focused As beginning assets Inc. to is in not on reflect liabilities first of it or plan XXXX. Endo assets fresh International's second XX, of effects a financial were call. expected reorganization. quarter financial results results statements earnings Endo, apply of or April is start and by Endo, do quarter pursuant of the on more of that Inc. to the typical acquired acquisition. the the Inc.'s International's International's than XXXX, all asset to Endo accounting

refer other press of principles in to comparable therein. course by The of measures release we reconciliations may used not noted unless measures from different the that companies. be measures in yesterday accepted financial otherwise financial GAAP directly financial are the the issued this the United are non-GAAP call, most in non-GAAP financial contained to accordance measures earnings that During generally non-GAAP accounting may prepared with States and

or stock announced registration effectuate information. of a on the of other on listing draft goal business, of registration the require a statement our description with our by Comments submitted stock modification or previously may to confidentially statement common the financial exchange. reformulation SEC the our have SEC We national

today. being from or As may future differ a presentation information present we information the in presented result, calculation in the

that would that are those the forward-looking in statements I to could this actual to statements. in projected to differ from Finally, like results remind uncertainties you cause subject presentation and such risks changes, materially

our we of in risk forward-looking can forward-looking statements the releases undertake other at on slide date website endo.com. this the statements of presentation update Additional deck this presentation section any only The to and be or factors obligation presentation, found in and this statements. speak accompanying regarding the release, materials press revise information those earnings available and of no these as of the in

to Mark? Bradley like International's over to financial Mark Endo turn call I the to would review results. now

Mark Bradley

Thank morning. you, Laure. Good morning, the this joining everyone, for and thank you call

International's assets results. As Endo substantially all April Laure quarter Endo reviewing International's operations, Accordingly, mentioned, Inc. and we liabilities acquisition. Inc. will acquired had be prior Endo, to on of no asset the Endo, XX. financial assets first

also discuss full We financial through Endo, results will guidance will April XX. year which Inc.'s International's include Endo

in line includes margin, a snapshot revenues, for results EBITDA expenses were GAAP for with adjusted first and X quarter. enterprise expectations XXXX. operating and non-GAAP generally Slide quarter International's adjusted XXXX International's Endo the first quarter gross of adjusted Endo the financial

total segment. due primarily Generic enterprise $XXX to the approximately first decreased first from revenues International's XXXX approximately XX% quarter compared Endo decreased quarter Pharmaceuticals to XXXX million revenues by of

revenues to operating compared margin slightly of Endo slightly gross adjusted expenses by decrease efficiency International's first to first of XXXX first XXXX in XX% due quarter with by the quarter The XXXX adjusted quarter to was product compared decreased million certain approximately offset lower to revenue. adjusted partially approximately due mix impact $XXX initiatives. EBITDA decreased due primarily and higher

This approximately quarter million first XXXX. of due change to in the quarter GAAP approximately XXXX On $XXX to net compared was first International's $X loss of loss million a was a basis, primarily Endo net in and incurred International's expenses onetime decrease proceedings, expenses Chapter certain primarily increased to offset expenses. XX litigation-related operating a connection a and partially in decrease other related revenues reorganization with in by Endo decreased

an This was first million was $XXX first of adjusted due million to quarter net $XXX in income basis, the XXXX quarter approximately of approximately decreased change compared On net Endo income to revenue. International's XXXX. primarily

Slide to X. Turning

International's increased an decrease quarter First from Products an portfolio. quarter revenues XXXX segment to product in revenues partially discontinuation The of in revenues from million, from driven in revenues X% offset increase the increase were XIAFLEX, compared revenues from approximately revenues pressures were reflects Established a and primarily the $XXX revenues the portfolio decreased Products X% Endo by Specialty from portfolio, by The Pharmaceuticals the which from SUPPRELIN competitive approximately approximately Products was Branded other the This increase X% portfolio. by offset across increase from approximately by driven LA. in first primarily portfolio Established Products an Specialty was XXXX. decrease

to On quarter basis, On the first quarter excluding were first increased from a the that XXXX. approximately approximately compared quarter revenues. reversed vial recorded subsequently reserves reported revenues XIAFLEX basis, the quarter XXXX in in fourth forma of a impact revenues by XX% determination. quarter reported XXXX final wastage following after XIAFLEX by First pro of rebate the first the XXXX reduced rebate XX% XIAFLEX increased XXXX of from reserves These

price driven net first to quarter reported selling compared higher the in forma quarter growth volume pro XXXX were rates by and first XXXX. and higher Both

to selling activation DTC and We are rates with are our diagnosis on date through pleased and personal achieving consumer and improving focused the campaigns efforts. additional XIAFLEX performance

As revenues reserve generally rebate excluding forma quarter XIAFLEX wastage tend end the of from impact of XXXX highest first initiating XXXX quarter wait compared vial each deductibles as in the Revenues and XIAFLEX patients first pro the toward after and many are to fourth reversal. to decreased year reported fulfill fourth the quarter expected, on treatment. insurance quarter basis of lowest before their year to in the the the a

higher X% by to primarily to due Endo approximately products decrease that by sales decreased $XX increased XXXX VASOSTRICT certain segment, to respect was partially driven from from on well revenues Injectables quarter volumes increased first competition was first approximately launches. revenues to as revenues as With million offset and by quarter product International's compared XXXX. This Sterile ADRENALIN XXXX

Turning to X. Slide

partially pieces the continue rest lidocaine driven XXXX of International's opportunities These version decrease million, the the tablets; quarter by competition on of of XXXX. Endo were revenues decrease primarily DEXILANT. a from generic LIDODERM, dexlansoprazole, version First business to quarter the increased Chantix; the year. approximately were the approximately by revenues $XXX This of first due of increased pressure the compared varenicline was generic generics from and to XX% through on pricing expect generic authorized of of entry portfolio patch, to new three we which offset

discussed August since exclusivity the in of fourth of an As until by of launch prior quarter and quarter International contributed XXXX. January generics of in throughout steady unexpected the XXXX, enjoyed decrease in market XXXX to competition XXXX. presentations, entry intensify on into the which a Endo XXXX its has varenicline first Competition to varenicline period revenue continue from in

erosion. are exit in XXXX, expect in significant segment expected our volatility as products have annual our product planned offset launches we we we XX to new less of much not expect do generics the to help approximately generic normal As Accordingly, going individual forward portfolio products. like varenicline

$XX International Pharmaceuticals to from First comparable quarter essentially approximately segment XXXX. revenues first were XXXX the million, quarter

X products. first generic additional Injectable the to International launches over expected in the expected Sterile to launches to by was be of launched quarter of Endo, Inc. remaining remainder Endo launches, launched X With respect product the Most are An of XXXX. X product the are product be to year. product by

compared Turning to Slide quarter first to cash X. operations International's quarter $XX $XX approximately million in from Endo XXXX. flow approximately first million XXXX was

compared pretax unlevered first XXXX. due free First quarter approximately to cash primarily unlevered due to decrease in adjusted partially first to project XXXX quarter quarter capital flow XXXX by free million was timing to approximately lower flow XXXX was spend. compared million $XXX lower The EBITDA, cash first the of in offset quarter $XX primarily expenditures

year. Advancing expectations year unchanged to Endo, financial year Slide Inc. the and International for earlier this the Full by from financial X remain issued financial up XXXX expectations full Endo XXXX wrapping discussion.

results include April of Inc. full the of through As from the through year financial Endo, December January International reminder, a results results X XX will April and XX XX. Endo from

revenues billion operating between $XXX billion, free $XXX and and and million EBITDA million $XXX pretax million. be adjusted be provided by remain million expenses the $X.XX expect $XXX and expectations. to We unlevered unchanged total revenues adjusted and Expected $X.XXX still between adjusted segment, be between margin cash from to previously flow to gross also

expected year in historical of expected higher second well of as the the of new of general half to timing anticipated half given EBITDA selling, the administrative the the impact to as and expenses. the the XIAFLEX, year seasonality first compared of is launches and product be expected

April Endo, expense interest of was million $XXX billion XX. approximately incur debt by the to on of issued that expect we Finally, on $X.X Inc.

low also range. have Endo, cash an XX% to the effective expect We Inc. rate tax in

back now I'll Laure? the turn Laure Q&A process. manage that, With call the to to

Laure Park

Thank please Operator, our first question? can you, have Mark. we

Operator

from Our comes [Operator first Instructions] Rishi Parekh from question JPMorgan.

Rishi Parekh

than just they pricing performed two noted indications could give the quarter, other. I that up. was On breakdown better hoping XIAFLEX, you how a volumes one that between the to you and the us if were trended as in

take do this you pricing, that on that's through anticipate increase And flowing in last Or another year year? then price And price quarter? the did was you QX?

Mark Bradley

for Rishi, question. Thanks, Yes. the

XX% comes from of from as think comes the I So DC. XX% previously, indications, we've disclosed the PD, revenue

after early the excluding prepared adjustment fourth early increase a increases in indications. the took price our a and in price was in price quarter each a The the year. we basis, of that We rebate X%-ish remarks, then pro forma mentioned about generally for take both quarter on increase second I --

seeing So it increase the year. is year, impact mentioned be you're from last really from I the that price would last that

Rishi Parekh

volume it Or just across there the But between on standpoint any just the I two two indications pretty the from was then was volumes? breakdown. was indications, indications? Okay. the And the a differences hoping, notable two know -- much I between even

Mark Bradley

and DC. it PD about -- DC. it digits. flat versus was about more DC roughly than was about -- PD low was generally -- PD Yes. double was had was PD growth

Rishi Parekh

to have year. then it's drop just expectations. And it we through be give at us I you going you should some Do and about current think Great. the those if could do off? to these expect just ADRENALIN. on to was Or VASOSTRICT Okay. how just Both idea our lastly remain levels? hoping two as you performed products thinking

Mark Bradley

Yes.

we first So higher QX so the slightly was quarter. due flu season to -- are in

So the expecting through recur remainder we're that the not of to year.

decline levels. incremental VASOSTRICT QX expecting to over are VASOSTRICT. the the relative year of expecting we remainder And also on we're to So competition

ADRENALIN, steadily steadily terribly, expected decline. full our It decline but throughout competition due in we competition. guidance are year Not the reflected that to year. And is potential expecting to or

Rishi Parekh

the and in revenue timing of squeeze launches this you you the more on any If revenue just one Have product for that year. I numbers peak provided those could numbers? peak have

Laure Park

Rishi, launches that's revenue great expectations specific question. we've each No, to not provided a totality. product in

X As the look little in to a in his expecting those over year. the to comments, prepared rest We're year. for of X Mark yet the indicated launches be later

perspective, one sterile. One X, to -- of that them from more was and generic then up moved a generic timing

Operator

next Kenneth Your question StoneX. Instructions] from [Operator comes from Smalley

Kenneth Smalley

Yes.

Just update projection? in terms this pipeline. years or a year quick on out expectations versus your changed at of for the planned year launches last Have and all follow-up next your

Laure Park

Since XXXX some we March, did -- some guidance shift. our there's But timing nothing normal timing in material. been for

Kenneth Smalley

that on still we're So track ramp. same for

Operator

further proceed closing Bradley, questions Mark please no time. at are There Instructions] remarks. Mr. this your with [Operator

Mark Bradley

as a look everyone, this Have we updates morning. thank rest call the We you joining you, day. for us with forward. move forward of on the great to providing Well,

Operator

joining. Ladies today's concludes and for Thank gentlemen, you conference. this

disconnect. You now may

Endo International (ENDPQ) 31 May 242024 Q1 Earnings call transcript