Endo International Has Raised Its Revenue Guidance for 2018

Revenue guidance for 2018

In its second-quarter earnings conference call, Endo International (ENDP) raised its 2018 revenue guidance to $2.75 billion–$2.85 billion from the previous $2.6 billion–$2.8 billion.

Endo International Has Raised Its Revenue Guidance for 2018Wall Street analysts have projected Endo International’s 2018 revenues at $2.8 billion, which would be a YoY (year-over-year) decline of 19.5%.

Its peers Mylan (MYL), Mallinckrodt (MNK), and Jazz Pharmaceuticals (JAZZ) are expected to report revenues of $11.8 billion, $2.5 billion, and $1.9 billion, respectively, in 2018.

Specialty and Established Pharmaceuticals segment

In Q2 2018, Endo International reported $213 million in sales for its Specialty and Established Pharmaceuticals segment. That’s a YoY decline of 13.1%. The Specialty Products segment reported a 9% YoY rise in revenues, driven by a 27% YoY increase in Xiaflex sales. The Established Products segment reported a YoY decline in revenues due to a voluntary withdrawal of Opana ER. The segment suffered due to the discontinuation of the needle-free migraine treatment option Sumavel DosePro in 2016 as well as increasing competition in the generic space.

Xiaflex reported revenues of $63.5 million in Q2 2018, which is a sequential rise of 11%. Suprelin LA, a central precocious puberty therapy, reported revenues of $20 million in Q2 2018, which is a 16% decline YoY. The decline was mainly attributable to the higher base in Q2 2017, coupled with increasing competition for new patient starts in Q2 2018.

Endo International expects its Specialty Products portfolio to report mid-single-digit YoY revenue growth in 2018. It also expects Xiaflex to report YoY revenue growth in the high teens instead of the previously projected guidance of the low- to mid-teens.

In the next part, let’s look at the earnings growth prospects for Endo International in more detail.