MALVERN, PA — Endo, Inc. (OTCQX: NDOI) announced its financial results for the third quarter ending September 30, 2024, following the acquisition of assets from Endo International plc earlier this year. The company reported total revenues of $427 million, marking a 6% decline from $452 million in the same quarter of 2023. This decrease is linked to competitive pressures in the Generic Pharmaceuticals and Sterile Injectables segments, partially offset by gains in Branded Pharmaceuticals.
The company faced a net loss of $233 million, a significant rise from $28 million in the previous year, primarily due to the effects of fresh start accounting. Adjusted net income also fell to $62 million from $131 million, influenced by higher interest and tax expenses. Despite these challenges, Adjusted EBITDA increased to $151 million, reflecting reduced operating costs and improved gross margin.
Scott Hirsch, Interim CEO, highlighted the performance of the XIAFLEX® franchise, which grew by 13%. He noted, “We continue to achieve our 2024 financial objectives, underscoring both our dedication to patients and our focus on delivering value to our stakeholders.”
In segment specifics, Branded Pharmaceuticals saw a 7% revenue increase to $217 million, driven by strong XIAFLEX® demand. However, the Sterile Injectables segment dropped by 16% to $80 million due to competitive pressures and supply disruptions. The Generic Pharmaceuticals segment faced an 18% decline to $111 million, with competition affecting several key products.
Endo also announced strategic moves, including the successful repricing of its $1.5 billion senior secured term loan, reducing the interest rate by 50 basis points, which is expected to save $8 million annually in cash interest.
In clinical developments, Endo reported results from its Phase 2 study of collagenase clostridium histolyticum for plantar fasciitis. Although the primary endpoint was not met, the study provided valuable insights for specific patient subgroups and maintained a consistent safety profile.
As of September 30, 2024, Endo held $368 million in unrestricted cash, with net cash from operating activities reduced to $12 million due to reorganization-related payments and increased fiscal obligations. Despite financial hurdles, Endo remains focused on strategic growth and innovation across its product lines.
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