Endo Cuts Annual Guidance on Impairment Charge
May 05 2016 - 9:20PM
Dow Jones News
Endo International PLC on Thursday reported its losses deepened
in its latest quarter, pressured by an asset impairment charge,
leading the pharmaceutical company to cut annual guidance.
For the latest quarter ended March 31, the company booked a
$129.6 million impairment charge up from $7 million a year ago.
Shares of the company slipped 24% to $20.18 after hours.
The company said it now expects total revenue for the year to be
between $3.87 billion and $4.03 billion, down from a previous range
of $4.32 billion to $4.52 billion. The company also expects
adjusted earnings on a per-share basis to land between $4.50 and
$4.80 down from $5.85 to $6.20.
Endo, which relocated to Ireland from Pennsylvania, is one of
several drug companies lately using their lower-tax foreign
addresses as springboards for acquisitions in the U.S., which has
one of the world's highest corporate tax rates.
Last month, the Treasury Department imposed tough new curbs on
corporate inversions, which contributed to Pfizer Inc. and Allergan
PLC ending their planned $150 billion merger.
Last year, Endo agreed to buy rival drugmaker Par Pharmaceutical
Holdings Inc. for $8 billion. The acquisition is slated to add
nearly 100 products, including a number of more expensive
injectable medicines, to Endo's portfolio of more than 700 generic
medicines.
Endo reported a first-quarter loss of $133.9 million or 60 cents
a share, compared with a loss of $75.7 million or 43 cents a year
earlier.
Excluding certain items, Endo's adjusted earnings were $1.08 a
share down from $1.29.
Revenue rose 35% to $963.5 million.
Analysts had expected adjusted earnings of $1.05 a share on
revenue of $960.3 million.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
May 05, 2016 21:05 ET (01:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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