Endo International on Monday posted adjusted earnings that were better than had been expected during its second quarter, as the sales were given a boost from its recent acquisitions, although its discontinued operation hit its bottom line.
Endo, which last year relocated from Pennsylvania to Ireland, is one of many pharmaceutical companies using foreign addresses that are lower in taxes, as a springboard for making acquisitions within the U.S., which has a corporate tax that is one of the highest anywhere in the world.
Over the last two years, Endo along with rivals that are bigger such as Allergan and Valeant Pharmaceuticals have made takeover deals exceeding $125 billion.
The latter deals helped to powered Endo into the segment of generic drugs, whose revenue was more than 24% up during the most recent quarter.
In May, the company agreed to purchase it rival Par Pharmaceutical Holdings for $8 billion. That acquisition will add close to 100 products, which include many injectable medicines that are more expensive, to the portfolio of Endo of over 700 generic medicines.
Endo reported a loss in the second quarter of $250.3 million equal to $1.35 per share, in comparison to $21.2 million in earnings equal to 13 cents per share last year during the same quarter.
Results during the most recent quarter also included losses of $159.5 million from its discontinued operations.
Excluding certain items like impairment charges and acquisition costs, Endo’s adjusted earnings from its continuing operations was up $1.08 per share compared to 89 cents for the same period last year. Revenue was up 24% to end the quarter at $735 million.
Analysts expected earnings per share of $1.02 and revenue of just over $727 million.
Sales of U.S. generics for Endo reached $338 million during the quarter. Growth was helped by the acquisition in August of 2014 of Dava and an increase in sales of its Lidoderm generic version.