Endo International plc (NASDAQ: ENDP) has reported its Q1 2021 financial results for the period ended March 31, 2021, in which consolidated revenue was $718 million, which is a 12% Yoy drop. The decline was a result of Sterile Injectable and Generic Pharmaceutical segment revenue decrease.
Growing competition affected sales in Q1 2021
Branded pharmaceutical unit revenue was $207 million, with specialty product revenues jumping 7% to 143 million and XIAFLEX sales growing 7% to $95 million. Surprisingly, established product revenue was down 9% to $63 million, driven mainly by current generic competition. Sterile Injectables segment reported an 8% decline in revenue to $309 million because of growing competition on some products but was partially offset by VASOSTRICT revenues. Generic pharmaceuticals revenue was down 28% to $181 million, and the difference was mainly due to the impact of the pandemic-related accelerated prescription fulfillment in Q1 2020 and competition in certain products. However, the launch of the lubiprostone capsules in Q1 2021 partially offset the decline.
The company reported income from continuing operation was $47 million in the quarter relative to $158 million a year ago. This resulted from discrete tax benefits in Q1 2021 from the COVID-19 Aid, Relief, and Economic Security Act (CARE Act).
Strong XIAFLEX drove revenues in Q1
Endo CEO Blaise Coleman said, “I am proud of the continued strong execution across each of Endo’s business segments as reflected by our better than expected first-quarter 2021 results. During the quarter, our Branded Pharmaceuticals segment returned to growth, driven by strong demand for XIAFLEX® and other physician administered products.”
The company is executing its business transformation activities well, and during the quarter, it launched QWO, which is an FDA-approved cellulite injectable treatment. Coleman said that the initial market reception for QWO has been exceptional, and they are delighted to bring the treatment to the market.