Endo International plc (NASDAQ:ENDP) Q3 2017 Earnings Conference Call Transcript

Nov 09, 2017 • 04:30 pm ET


Endo International plc (NASDAQ:ENDP) Q3 2017 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Endo International Third Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Steve Mock, SVP, IR and Corporate Affairs. Sir, you may begin.

Steve Mock

Thank you, Shannon. Good afternoon and thank you for joining us to discuss our third quarter 2017 financial results. Joining me on today's call are Paul Campanelli, President and CEO of Endo and Blaise Coleman, EVP and CFO. We have prepared a slide presentation to accompany today's webcast and that presentation, as well as other materials are posted online in the investor section at www.endo.com.

(Forward-Looking Cautionary Statements)

In addition, during the course of this call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Endo's current report on Form 8-K furnished with the SEC for Endo's reasons for including those non-GAAP financial measures in today's earnings announcement. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in our earnings press release issued prior to today's call unless otherwise noted therein.

I would now like to turn the call over to Paul.

Paul Campanelli

Thank you, Steve. Good afternoon and thank you for joining us for today's call. I hope that you had a chance to review the company's earnings release that we issued earlier this afternoon. Endo is very pleased to report another quarter of solid operating performance. This performance resulted from strong operational execution in our core areas of focus and expected future growth. In the third quarter, Endo once again benefited from the impressive contributions of our Sterile Injectables and Branded Specialty products business units.

Beginning on slide 2, here's a brief agenda for today's call. Moving to slide 3, again, we are very pleased with our third quarter operating performance. Strong growth in our Sterile Injectables and Branded Specialty portfolios and lowering operating expenses, including cost savings from previously announced restructurings, drove the increase in adjusted EBITDA and adjusted EBITDA margin, a key priority for Endo.

We are reaffirming our 2017 revenue, adjusted EBITDA and adjusted diluted EPS guidance that we provided in August. We now expect to achieve adjusted EBITDA and adjusted diluted EPS that will reach the upper end of our 2017 guidance ranges. Blaise will discuss our financial guidance in greater detail later in the presentation.

Moving to slide 4, you'll see a snapshot of our segment revenues for the third quarter. As expected, the previously communicated and by now well documented headwinds impacting the US generics industry accounted for the overall decline in the US Generic pharmaceuticals. Similarly, US Branded pharmaceuticals overall performance was impacted by continued generic competition for established products, product divestitures and our ceasing shipments of OPANA ER.

I'd like to point out that within