Endo Pharmaceuticals Holdings Inc.'s (ENDP) swung to a first-quarter loss, mostly owing to a $110 million charge related to a 2010 litigation settlement, while the pharmaceutical company reported revenue grew with a boost from a recent acquisition.
Endo has seen its revenue rise in recent quarters, aided by acquisitions that expanded its generic-drug business and core painkiller franchise. But the related charges have hurt its bottom line of late.
First-quarter sales were expected to be affected by a temporary shutdown of a Novartis AG (NVS, Z.NOV) plant in Nebraska to address potential packaging errors. The plant manufactures some Endo products such as its Opana ER painkiller. In the latest period, Opana ER sales were down 4.2%. On Tuesday the company said Opana ER and Voltaren Gel now in steady supply.
Endo reported a loss of $87.3 million, or 75 cents a share, compared with a year-earlier profit of $55.8 million, or 46 cents a share. Excluding impacts from a 2010 litigation settlement with Impax Laboratories Inc. (IPXL), adjusted earnings were down at 87 cents from $1. The company in February expected earnings below 90 cents amid a temporary shutdown at the Novartis plant.
Revenue increased 23% to $691 million, with a boost from its American Medical Systems acquisition. Analysts polled by Thomson Reuters most recently projected $702 million.
Gross margin fell to 47.2% from 58.7%.
Sales of Lidoderm, which makes up the biggest chunk of Endo's top line, were up 11%.
Overall branded drug sales were down 3% while generics sales increased 8%.
Shares of Endo, which reaffirmed its 2012 guidance, closed Monday at $35.14 and were inactive premarket. The stock is down roughly 10% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com