Beacon Transcript – Endo, the generic drug making company, released its quarter year reports this Tuesday and revealed better-than-expected numbers but also grim expectations with regards to the market.
Endo, the Dublin, Ireland-based company, has released its quarter year reports and revealed better-than-expected numbers after the fierce market competition forced the company to slash its forecast back in May.
Analysts had predicted $862.3 million as an average estimate for the company’s third quarter revenue numbers.
According to company official results the quarter, which ended on September 30, was more profitable than expected as the total registered revenue reached $884.3 million and marked an 18.6 pct rise.
The Endo share value also rose to a $1.01 sum per share and surpassed the analyst average estimated value of 81 cents.
The rise in value and better than foreseen values are believed to have been based on the rise in the demand for generic drugs.
As the company’s main area of expertise, the generic drugs domain also comes to almost 60 percent of Endo’s revenue.
The company’s generic drug business marked a 45 percent rise in itself last year after Endo bought the Par Pharmaceutics.
Still, following the positive third quarter reports, the Endo CEO revealed grim market expectations as the general trend tend to indicate towards more competition and higher prices.
Paul Campanelli, who has been the head of the Endo generic drugs business until recently, when he appointed as Chief Executive, announced in the post-earning call that the company will most likely be facing a harsher market in 2017.
According to him, the generics drugs United States market, which also includes companies such as Teva and Mylan, will be even more competitive in the following year as the competition will generate pricing pressures and drug “erosion trends”.
The aforementioned pressures could come to impact Endo in not only their adjusted gross margins but also in their ability to pursue new drug approvals, according to the same Campanelli.
The generic drugs market and its makers have already been facing quite a serious scrutiny from both political and regulatory authorities as critics accused the companies of price collusion tactics.
As the revenue both also the competition seem to increase, Campanelli has yet to make a statement in regards to the company’s $7.7 billion debt. With the September 30 number being the latest released number, the CEO promised to offer more news in regards the debt in a February update.
Reportedly, Endo is considering selling one of its specialty pharmaceutical units, more exactly the Montreal-based one, to Knight Therapeutics a Canadian drug maker.
Endo is believed to be facing quite difficult times as the company carries both a large debt and will have to change strategy as it will have to change its pricing methods so as to influence its growth.
Image Source: Wikimedia