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UPDATE 2-Endo's profit, revenue top estimates on strong generic drug sales

Published 2016-11-08, 08:01 a/m
© Reuters.  UPDATE 2-Endo's profit, revenue top estimates on strong generic drug sales
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* Q3 adjusted EPS, sales top estimates

* U.S. generics drug sales surge 45 percent

* Company reaffirms full-year forecast

* Shares up 4.2 percent premarket (Adds details on results, background; updates shares)

Nov 8 (Reuters) - Endo International Plc ENDP.O reported quarterly revenue and adjusted profit that blew past analysts' estimates, driven by higher demand for the generic drugs it acquired when it bought Par Pharmaceuticals last year.

Shares of Endo, which offers a suite of specialty, generic and over-the-counter medical products, were up 4.3 percent at $16.35 in premarket trading on Tuesday.

Endo's revenue from its U.S. generic drug business rose 45 percent to $534 million in the third quarter as the demand for Par Pharma's drugs offset a drop in sales at Endo's legacy generics business.

The overall generics business, which accounted for about 60 percent of total revenue, was led by Paul Campanelli until he became chief executive of Endo in September.

Campanelli joined Endo following the company's $8-billion acquisition of Par Pharma, where he was CEO since 2012.

The growth in the U.S. generics business also helped offset a decline in sales at Endo's other divisions - U.S. branded pharmaceuticals and international pharmaceuticals.

The company's total revenue rose 18.6 pct to $884.3 million in the three months ended Sept. 30, beating analysts' average estimate of $862.3 million, according to Thomson Reuters I/B/E/S.

Excluding items, Dublin, Ireland-based Endo earned $1.01 per share, handily beating analysts' average estimate of 81 cents.

The drugmaker's net loss attributable to shareholders narrowed to $218.9 million, or 98 cents per share, from $1.05 billion, or $5.02 per share, a year earlier. much like its Canadian peer Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO VRX.N , is reeling with a large debt load and facing mounting pressure over its pricing strategies, after years of relying on acquisitions to juice growth.

Valeant on Tuesday reported a smaller-than-expected quarterly adjusted profit due to faltering sales of its dermatology products and bowel drug, and the company cut its full-year profit and revenue forecasts. reaffirmed its full-year revenue and profit forecast.

The company has discussed a sale of Paladin Labs Inc, its Montreal-based specialty pharmaceutical unit, to Canadian drug maker Knight Therapeutics Inc GUD.TO , Reuters reported last week, citing sources. net debt totaled $7.7 billion as of Sept. 30.

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