Endo Pharmaceuticals Holdings Inc. has a market cap of $2.6 billion; its shares were traded at around $22.14 with a P/E ratio of 7.6 and P/S ratio of 1.8. Endo Pharmaceuticals Holdings Inc. had an annual average earning growth of 32.8% over the past 10 years.ENDP is in the portfolios of Chuck Royce of Royce& Associates, John Hussman of Hussman Economtrics Advisors, Inc., HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Jim Simons of Renaissance Technologies LLC, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations: Other brands. Net sales of our other branded products for the three months ended March 31, 2010 increased by $12.7 million from the comparable 2009 period. This increase is primarily driven by our February 2009 acquisition of Indevus, which contributed approximately $7.9 million of net sales during the period from February 23, 2009 through March 31, 2009 compared to $19.9 million for the full quarter ended March 31, 2010.
Acquisition Related Items. Acquisition-related expenses for the three months ended March 31, 2010 decreased to $1.5 million from $26.4 million in the comparable 2009 period. As a result of our acquisition of Indevus Pharmaceuticals, Inc. in the first quarter of 2009, we incurred $26.4 million of acquisition related costs, which were attributable to transaction fees, professional service fees, employee retention and separation arrangements and other costs related to the acquisition. This compares to $1.5 million in 2010 primarily reflecting changes in the fair value of the acquisition-related contingent consideration.
Income tax for the three months ended March 31, 2010 increased to $36.4 million from $29.7 million in the comparable period. This increase is due to the increase in income before income tax for the three months ended March 31, 2010, partially offset by the decrease in our effective income tax rate to 37.6% for the three months ended March 31, 2010 from 43.2% in the comparable 2009 period. The decrease in the effective income tax rate is primarily due to the absence of $3.5 million or 5.1% relating to certain non-deductible Indevus acquisition related costs incurred during the three months ended March 31, 2009. These decreases were offset slightly due to the absence of the research and development tax credit benefit which is not effective as of March 31, 2010.
Our principal source of liquidity is cash generated from operations. Our principal liquidity requirements are for working capital for operations, acquisitions, licenses, milestone payments, capital expenditures and debt service payments. The Company continues to maintain a sufficient level of working capital, which was approximately $895.9 million at March 31, 2010, increasing from $808.4 million at December 31, 2009. Cash, cash equivalents and current marketable securities were approximately $835.0 million at March 31, 2010 compared to $733.7 million at December 31, 2009.
In 2010, we expect cash generated from operations together with our cash, cash equivalents and current marketable securities to be sufficient to cover cash needs for working capital and general corporate purposes, the payment of contractual obligations, including scheduled interest payments on our Convertible Notes, principal and interest payments on the remaining $57.0 million of Indevus debt assumed by the Company, and any regulatory and/or sales milestones that may become due. We expect that sales of our currently marketed products to allow us to continue to generate positive cash flow from operations. In February 2009, concurrent with the completion of the Indevus transaction, we placed $175 million in escrow until December 15, 2009 to fund the potential AveedTM Contingent Cash Consideration Agreement. Since we did not obtain FDA Approval by December 15, 2009, the $175 million was returned to us.
Beyond 2010, we expect cash generated from operations together with our cash, cash equivalents and marketable securities to continue to be sufficient to cover cash needs for working capital and general corporate purposes, acquisition of other businesses, including the potential payments of approximately $267 million in contingent cash consideration payments related to our acquisition of Indevus, products, product rights, or technologies, the payment of contractual obligations, including scheduled interest payments on our convertible notes, principal and interest payments on the remaining $57.0 million of Indevus debt assumed by the Company, certain minimum royalties due to Novartis and the regulatory or sales milestones that may become due, and/or the purchase, redemption or retirement of our convertible notes, including a principal payment of $379.5 million at maturity in 2015. We expect that sales of our currently marketed products will allow us to continue to generate positive cash flow from operations. At this time, we cannot accurately predict the effect of certain developments on the rate of sales growth, such as the degree of market acceptance, patent protection and exclusivity of our products, the impact of competition, the effectiveness of our sales and marketing efforts and the outcome of our current efforts to develop, receive approval for and successfully launch our near-term product candidates. If any of the above adversely affects our future cash flows, we may need to obtain additional funding for future strategic transactions, to repay our outstanding indebtedness, or for our future operational needs, and we cannot be certain that funding will be available on terms acceptable to us, or at all.
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