Endo Pharmaceuticals Holdings Inc. (ENDP) filed Quarterly Report for the period ended 2009-09-30.
Endo Pharmaceuticals Holdings Inc. through its wholly owned subsidiaries Endo Pharmaceuticals Inc. and Endo Inc. is engaged in the research development sales and marketing of branded and generic prescription pharmaceuticals used primarily for the treatment and management of pain. Endo Pharmaceuticals Holdings Inc. has a market cap of $2.6 billion; its shares were traded at around $22.17 with a P/E ratio of 8.3 and P/S ratio of 2. Endo Pharmaceuticals Holdings Inc. had an annual average earning growth of 25.5% over the past 5 years.
Highlight of Business Operations:
On February 23, 2009 (the Acquisition Date), the Company completed its initial tender offer (the Offer) for all outstanding shares of common stock, par value $0.001 per share (the Indevus Shares), of Indevus, a Delaware corporation. On that day, the Company accepted for payment in accordance with the terms of the Offer, approximately 60.3 million Indevus Shares representing approximately 76% of the total outstanding Indevus Shares. Through purchases in subsequent offering periods, the exercise of a top-up option and a subsequent merger (the Merger), the Company completed its acquisition of Indevus on March 23, 2009, at which time Indevus became a wholly-owned subsidiary of the Company. The Indevus Shares were purchased at a price of $4.50 per Indevus Share, net to the seller in cash, plus contractual rights to receive up to an additional $3.00 per Indevus Share in contingent cash consideration payments (the Offer Price), pursuant to the terms of the Agreement and Plan of Merger, dated as of January 5, 2009. Accordingly, the Company paid approximately $368 million in aggregate initial cash consideration for the Indevus Shares and entered into the AveedTM Contingent Cash Consideration Agreement and the Octreotide Contingent Cash Consideration Agreement (each as defined in the Merger Agreement), providing for the payment of up to an additional $3.00 per Indevus Share in contingent cash consideration payments, in accordance with the terms of the Offer.
Lidoderm®. Net sales of Lidoderm® for the three months ended September 30, 2009 decreased by $1.4 million, or 0.7%, from the comparable 2008 period. Net sales of Lidoderm® for the nine months ended September 30, 2009 increased by $0.1 million from the comparable 2008 period. As expected, we recognize that the growth of this product has slowed as it matures and competition in the topical pain market increases. Notwithstanding, the product has had a solid performance this year and continues to generate strong cash flow that we can use to invest in our business to continue to further diversify our revenue base.
Voltaren® Gel. Net sales of Voltaren® Gel for the three and nine months ended September 30, 2009 were $19.6 million and $57.4 million, respectively compared to $10.3 million for the three months ended September 30, 2008 and $11.3 million for the nine months ended September 30, 2008. The Company launched Voltaren® Gel in March 2008. We believe the growth of Voltaren® Gel since its launch is driven by the product’s proven clinical effectiveness combined with our continued promotional activities aimed at increasing product awareness in the target audience. We believe we are establishing a stronger position in the osteoarthritis market with Voltaren® Gel.
Other brands. Net sales of our other branded products for the three months ended September 30, 2009 increased by $15.8 million to $18.5 million from $2.7 million in the comparable 2008 period. Net sales of our other branded products for the nine months ended September 30, 2009 increased by $36.3 million to $44.3 million from $8.0 million in the comparable 2008 period. This increase is primarily driven by the acquired Indevus products, Supprelin® LA and Vantas®, which together contributed approximately $14.6 million of net sales during the three months ended September 30, 2009 and $32.1 million of net sales during the period from February 23, 2009 through September 30, 2009.
Selling, General and Administrative Expenses. Selling, general and administrative expenses for the three months ended September 30, 2009 increased to $139.9 million from $116.2 million in the comparable 2008 period. Selling, general and administrative expenses for the nine months ended September 30, 2009 increased to $389.5 million from $357.8 million in the comparable 2008 period. The increase is primarily attributable to our acquisition of Indevus during the first quarter of 2009 partially offset by expense efficiency measures taken in 2009.
Research and Development Expenses. Research and development expenses for the three months ended September 30, 2009 increased to $59.7 million from $22.2 million in the comparable 2008 period. Research and development expenses for the nine months ended September 30, 2009 increased to $136.6 million from $82.2 million in
ENDP is in the portfolios of Carl Icahn of Icahn Capital Management LP.
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