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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Endo International PLC | NASDAQ:ENDP | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.2926 | 0.29 | 0.294 | 0 | 01:00:00 |
Ireland
|
68-0683755
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
|
First Floor, Minerva House, Simmonscourt Road
|
|
|
Ballsbridge, Dublin 4,
|
Ireland
|
Not Applicable
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
Yes
|
☒
|
|
|
|
No
|
☐
|
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
|
Yes
|
☒
|
|
|
|
No
|
☐
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
☐
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
Yes
|
☐
|
|
|
|
No
|
☒
|
Securities registered pursuant to Section 12(b) of the Exchange Act:
|
||
|
|
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
Ordinary shares, nominal value $0.0001 per share
|
ENDP
|
The Nasdaq Global Select Market
|
The number of Ordinary shares, nominal value $0.0001 per share outstanding as of April 30, 2020 was 229,704,840.
|
|
|
Page
|
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
||
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
TOTAL REVENUES, NET
|
$
|
820,405
|
|
|
$
|
720,411
|
|
COSTS AND EXPENSES:
|
|
|
|
||||
Cost of revenues
|
388,799
|
|
|
391,909
|
|
||
Selling, general and administrative
|
166,768
|
|
|
151,123
|
|
||
Research and development
|
31,615
|
|
|
33,486
|
|
||
Litigation-related and other contingencies, net
|
(17,176
|
)
|
|
6
|
|
||
Asset impairment charges
|
97,785
|
|
|
165,448
|
|
||
Acquisition-related and integration items, net
|
12,462
|
|
|
(37,501
|
)
|
||
Interest expense, net
|
132,877
|
|
|
132,675
|
|
||
Gain on extinguishment of debt
|
—
|
|
|
(119,828
|
)
|
||
Other (income) expense, net
|
(13,974
|
)
|
|
4,802
|
|
||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX
|
$
|
21,249
|
|
|
$
|
(1,709
|
)
|
INCOME TAX (BENEFIT) EXPENSE
|
(136,332
|
)
|
|
10,903
|
|
||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
$
|
157,581
|
|
|
$
|
(12,612
|
)
|
DISCONTINUED OPERATIONS, NET OF TAX (NOTE 3)
|
(27,651
|
)
|
|
(5,961
|
)
|
||
NET INCOME (LOSS)
|
$
|
129,930
|
|
|
$
|
(18,573
|
)
|
NET INCOME (LOSS) PER SHARE—BASIC:
|
|
|
|
||||
Continuing operations
|
$
|
0.69
|
|
|
$
|
(0.06
|
)
|
Discontinued operations
|
(0.12
|
)
|
|
(0.02
|
)
|
||
Basic
|
$
|
0.57
|
|
|
$
|
(0.08
|
)
|
NET INCOME (LOSS) PER SHARE—DILUTED:
|
|
|
|
||||
Continuing operations
|
$
|
0.68
|
|
|
$
|
(0.06
|
)
|
Discontinued operations
|
(0.12
|
)
|
|
(0.02
|
)
|
||
Diluted
|
$
|
0.56
|
|
|
$
|
(0.08
|
)
|
WEIGHTED AVERAGE SHARES:
|
|
|
|
||||
Basic
|
227,198
|
|
|
224,594
|
|
||
Diluted
|
233,014
|
|
|
224,594
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
NET INCOME (LOSS)
|
$
|
129,930
|
|
|
$
|
(18,573
|
)
|
OTHER COMPREHENSIVE (LOSS) INCOME:
|
|
|
|
||||
Net unrealized (loss) gain on foreign currency
|
$
|
(14,437
|
)
|
|
$
|
4,730
|
|
Total other comprehensive (loss) income
|
$
|
(14,437
|
)
|
|
$
|
4,730
|
|
COMPREHENSIVE INCOME (LOSS)
|
$
|
115,493
|
|
|
$
|
(13,843
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
129,930
|
|
|
$
|
(18,573
|
)
|
Adjustments to reconcile Net income (loss) to Net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
141,588
|
|
|
162,733
|
|
||
Share-based compensation
|
17,645
|
|
|
24,733
|
|
||
Amortization of debt issuance costs and discount
|
4,339
|
|
|
5,586
|
|
||
Deferred income taxes
|
(911
|
)
|
|
(785
|
)
|
||
Change in fair value of contingent consideration
|
12,462
|
|
|
(37,501
|
)
|
||
Gain on extinguishment of debt
|
—
|
|
|
(119,828
|
)
|
||
Asset impairment charges
|
97,785
|
|
|
165,448
|
|
||
(Gain) loss on sale of business and other assets
|
(8,192
|
)
|
|
1,294
|
|
||
Changes in assets and liabilities which (used) provided cash:
|
|
|
|
|
|
||
Accounts receivable
|
(72,833
|
)
|
|
(14,389
|
)
|
||
Inventories
|
(324
|
)
|
|
(11,928
|
)
|
||
Prepaid and other assets
|
(3,581
|
)
|
|
5,059
|
|
||
Accounts payable, accrued expenses and other liabilities
|
(112,625
|
)
|
|
(258,202
|
)
|
||
Income taxes payable/receivable, net
|
(142,727
|
)
|
|
5,770
|
|
||
Net cash provided by (used in) operating activities
|
$
|
62,556
|
|
|
$
|
(90,583
|
)
|
INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of property, plant and equipment, excluding capitalized interest
|
(19,638
|
)
|
|
(15,386
|
)
|
||
Capitalized interest payments
|
(492
|
)
|
|
(1,094
|
)
|
||
Proceeds from sale of business and other assets, net
|
4,167
|
|
|
103
|
|
||
Net cash used in investing activities
|
$
|
(15,963
|
)
|
|
$
|
(16,377
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from issuance of notes, net
|
—
|
|
|
1,483,125
|
|
||
Repayments of notes
|
—
|
|
|
(1,499,998
|
)
|
||
Repayments of term loans
|
(8,537
|
)
|
|
(8,538
|
)
|
||
Repayments of other indebtedness
|
(1,184
|
)
|
|
(1,174
|
)
|
||
Payments for debt issuance and extinguishment costs
|
—
|
|
|
(211
|
)
|
||
Payments for contingent consideration
|
(364
|
)
|
|
(4,565
|
)
|
||
Payments of tax withholding for restricted shares
|
(4,398
|
)
|
|
(2,414
|
)
|
||
Proceeds from exercise of options
|
—
|
|
|
4
|
|
||
Net cash used in financing activities
|
$
|
(14,483
|
)
|
|
$
|
(33,771
|
)
|
Effect of foreign exchange rate
|
(1,894
|
)
|
|
537
|
|
||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS
|
$
|
30,216
|
|
|
$
|
(140,194
|
)
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF PERIOD
|
1,720,388
|
|
|
1,476,837
|
|
||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD
|
$
|
1,750,604
|
|
|
$
|
1,336,643
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
||||
Cash paid into Qualified Settlement Funds for mesh legal settlements
|
$
|
—
|
|
|
$
|
81,582
|
|
Cash paid out of Qualified Settlement Funds for mesh legal settlements
|
$
|
47,801
|
|
|
$
|
54,984
|
|
Other cash distributions for mesh legal settlements
|
$
|
17,819
|
|
|
$
|
10,239
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Litigation-related and other contingencies, net
|
$
|
30,454
|
|
|
$
|
—
|
|
Loss from discontinued operations before income taxes
|
$
|
(33,517
|
)
|
|
$
|
(5,961
|
)
|
Income tax benefit
|
$
|
(5,866
|
)
|
|
$
|
—
|
|
Discontinued operations, net of tax
|
$
|
(27,651
|
)
|
|
$
|
(5,961
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net revenues from external customers:
|
|
|
|
||||
Branded Pharmaceuticals
|
$
|
204,073
|
|
|
$
|
203,525
|
|
Sterile Injectables
|
336,390
|
|
|
270,048
|
|
||
Generic Pharmaceuticals
|
251,283
|
|
|
218,526
|
|
||
International Pharmaceuticals (1)
|
28,659
|
|
|
28,312
|
|
||
Total net revenues from external customers
|
$
|
820,405
|
|
|
$
|
720,411
|
|
Segment adjusted income from continuing operations before income tax:
|
|
|
|
||||
Branded Pharmaceuticals
|
$
|
98,422
|
|
|
$
|
95,283
|
|
Sterile Injectables
|
263,896
|
|
|
196,183
|
|
||
Generic Pharmaceuticals
|
57,327
|
|
|
50,411
|
|
||
International Pharmaceuticals
|
14,197
|
|
|
12,095
|
|
||
Total segment adjusted income from continuing operations before income tax
|
$
|
433,842
|
|
|
$
|
353,972
|
|
(1)
|
Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Total consolidated income (loss) from continuing operations before income tax
|
$
|
21,249
|
|
|
$
|
(1,709
|
)
|
Interest expense, net
|
132,877
|
|
|
132,675
|
|
||
Corporate unallocated costs (1)
|
43,322
|
|
|
48,095
|
|
||
Amortization of intangible assets
|
117,237
|
|
|
145,599
|
|
||
Upfront and milestone payments to partners
|
1,750
|
|
|
939
|
|
||
Continuity and separation benefits and other cost reduction initiatives (2)
|
23,220
|
|
|
2,025
|
|
||
Certain litigation-related and other contingencies, net (3)
|
(17,176
|
)
|
|
6
|
|
||
Certain legal costs (4)
|
15,536
|
|
|
16,689
|
|
||
Asset impairment charges (5)
|
97,785
|
|
|
165,448
|
|
||
Acquisition-related and integration items, net (6)
|
12,462
|
|
|
(37,501
|
)
|
||
Gain on extinguishment of debt
|
—
|
|
|
(119,828
|
)
|
||
Foreign currency impact related to the remeasurement of intercompany debt instruments
|
(7,094
|
)
|
|
1,534
|
|
||
Other, net (7)
|
(7,326
|
)
|
|
—
|
|
||
Total segment adjusted income from continuing operations before income tax
|
$
|
433,842
|
|
|
$
|
353,972
|
|
(1)
|
Amounts include certain corporate overhead costs, such as headcount, facility and corporate litigation expenses and certain other income and expenses.
|
(2)
|
Amounts for the three months ended March 31, 2020 include $13.7 million of costs associated with certain continuity and transitional compensation arrangements for certain senior management of the Company. Other amounts in 2020 related primarily to certain cost reduction initiatives. Such amounts included accelerated depreciation of $6.6 million, employee separation costs of $0.1 million and other charges of $2.8 million. Amounts for the three months ended March 31, 2019 primarily relate to employee separation costs of $1.8 million and other charges of $0.2 million.
|
(3)
|
Amounts include adjustments to our accruals for litigation-related settlement charges and certain settlement proceeds related to suits filed by our subsidiaries. Our material legal proceedings and other contingent matters are described in more detail in Note 12. Commitments and Contingencies.
|
(4)
|
Amounts relate to opioid-related legal expenses.
|
(5)
|
Amounts primarily relate to charges to impair goodwill and intangible assets as further described in Note 8. Goodwill and Other Intangibles.
|
(6)
|
Amounts primarily relate to changes in the fair value of contingent consideration.
|
(7)
|
Amounts primarily relate to gains on sales of businesses and other assets, as further described in Note 15. Other (Income) Expense, Net.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Branded Pharmaceuticals:
|
|
|
|
||||
Specialty Products:
|
|
|
|
||||
XIAFLEX®
|
$
|
89,072
|
|
|
$
|
68,507
|
|
SUPPRELIN® LA
|
19,720
|
|
|
22,056
|
|
||
Other Specialty (1)
|
25,505
|
|
|
24,403
|
|
||
Total Specialty Products
|
$
|
134,297
|
|
|
$
|
114,966
|
|
Established Products:
|
|
|
|
||||
PERCOCET®
|
$
|
27,703
|
|
|
$
|
30,760
|
|
EDEX®
|
8,568
|
|
|
5,971
|
|
||
Other Established (2)
|
33,505
|
|
|
51,828
|
|
||
Total Established Products
|
$
|
69,776
|
|
|
$
|
88,559
|
|
Total Branded Pharmaceuticals (3)
|
$
|
204,073
|
|
|
$
|
203,525
|
|
Sterile Injectables:
|
|
|
|
||||
VASOSTRICT®
|
$
|
202,904
|
|
|
$
|
139,137
|
|
ADRENALIN®
|
56,512
|
|
|
47,322
|
|
||
Ertapenem for injection
|
17,874
|
|
|
32,219
|
|
||
APLISOL®
|
9,867
|
|
|
12,381
|
|
||
Other Sterile Injectables (4)
|
49,233
|
|
|
38,989
|
|
||
Total Sterile Injectables (3)
|
$
|
336,390
|
|
|
$
|
270,048
|
|
Total Generic Pharmaceuticals (5)
|
$
|
251,283
|
|
|
$
|
218,526
|
|
Total International Pharmaceuticals (6)
|
$
|
28,659
|
|
|
$
|
28,312
|
|
Total revenues, net
|
$
|
820,405
|
|
|
$
|
720,411
|
|
(1)
|
Products included within Other Specialty are NASCOBAL® Nasal Spray and AVEED®.
|
(2)
|
Products included within Other Established include, but are not limited to, LIDODERM® and TESTOPEL®.
|
(3)
|
Individual products presented above represent the top two performing products in each product category for the three months ended March 31, 2020 and/or any product having revenues in excess of $25 million during any quarterly period in 2020 or 2019.
|
(4)
|
Products included within Other Sterile Injectables include ephedrine sulfate injection and others.
|
(5)
|
The Generic Pharmaceuticals segment is comprised of a portfolio of products that are generic versions of branded products, are distributed primarily through the same wholesalers, generally have no intellectual property protection and are sold within the U.S. During the three months ended March 31, 2019, colchicine tablets, the authorized generic of Takeda Pharmaceuticals U.S.A., Inc.’s (Takeda) Colcrys®, which launched in July 2018, made up 6% of consolidated total revenue. No other individual product within this segment has exceeded 5% of consolidated total revenues for the periods presented.
|
(6)
|
The International Pharmaceuticals segment, which accounted for 3% and 4% of consolidated total revenues during the three months ended March 31, 2020 and 2019, respectively, includes a variety of specialty pharmaceutical products sold outside the U.S., primarily in Canada through our operating company Paladin.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Restricted cash and cash equivalents—current portion (1)
|
$
|
200,666
|
|
|
$
|
247,457
|
|
Restricted cash and cash equivalents—noncurrent portion (2)
|
18,400
|
|
|
18,400
|
|
||
Restricted cash and cash equivalents—total (3)
|
$
|
219,066
|
|
|
$
|
265,857
|
|
(1)
|
These amounts are reported in our Condensed Consolidated Balance Sheets as Restricted cash and cash equivalents.
|
(2)
|
These amounts are reported in our Condensed Consolidated Balance Sheets as Other assets.
|
(3)
|
Approximately $195.7 million and $242.8 million of our restricted cash and cash equivalents are held in Qualified Settlement Funds (QSFs) for mesh-related matters at March 31, 2020 and December 31, 2019, respectively. The remaining restricted cash and cash equivalents primarily relates to other litigation-related matters. See Note 12. Commitments and Contingencies for further information.
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
•
|
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
|
Fair Value Measurements at March 31, 2020 using:
|
||||||||||||||
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
635,365
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
635,365
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Acquisition-related contingent consideration—current
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,459
|
|
|
$
|
8,459
|
|
Acquisition-related contingent consideration—noncurrent
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,480
|
|
|
$
|
30,480
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Beginning of period
|
$
|
29,657
|
|
|
$
|
116,703
|
|
Amounts settled
|
(2,461
|
)
|
|
(11,591
|
)
|
||
Changes in fair value recorded in earnings
|
12,462
|
|
|
(37,501
|
)
|
||
Effect of currency translation
|
(719
|
)
|
|
231
|
|
||
End of period
|
$
|
38,939
|
|
|
$
|
67,842
|
|
|
Balance as of December 31, 2019
|
|
Changes in Fair Value Recorded in Earnings
|
|
Amounts Settled and Other
|
|
Balance as of March 31, 2020
|
||||||||
Auxilium acquisition
|
$
|
13,207
|
|
|
$
|
(54
|
)
|
|
$
|
—
|
|
|
$
|
13,153
|
|
Lehigh Valley Technologies, Inc. acquisitions
|
6,800
|
|
|
12,897
|
|
|
(2,097
|
)
|
|
17,600
|
|
||||
Other
|
9,650
|
|
|
(381
|
)
|
|
(1,083
|
)
|
|
8,186
|
|
||||
Total
|
$
|
29,657
|
|
|
$
|
12,462
|
|
|
$
|
(3,180
|
)
|
|
$
|
38,939
|
|
|
Fair Value Measurements during the Three Months Ended March 31, 2020 (1) using:
|
|
Total Expense for the Three Months Ended March 31, 2020
|
||||||||||||
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
|||||||||
Intangible assets, excluding goodwill (2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,377
|
|
|
$
|
(63,751
|
)
|
Certain property, plant and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,248
|
)
|
||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,377
|
|
|
$
|
(64,999
|
)
|
(1)
|
The fair value amounts are presented as of the date of the fair value measurement as these assets are not measured at fair value on a recurring basis. Such measurements generally occur in connection with our quarter-end financial reporting close procedures.
|
(2)
|
These fair value measurements were determined using risk-adjusted discount rates ranging from approximately 10.0% to 12.0% (weighted average rate of approximately 11.1%, weighted based on relative fair value). The Company also performed fair value measurements in connection with its goodwill impairment tests. Refer to Note 8. Goodwill and Other Intangibles for additional information on goodwill and other intangible asset impairment tests, including information about the valuation methodologies utilized.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Raw materials (1)
|
$
|
115,436
|
|
|
$
|
124,171
|
|
Work-in-process (1)
|
67,983
|
|
|
65,392
|
|
||
Finished goods (1)
|
141,543
|
|
|
138,302
|
|
||
Total
|
$
|
324,962
|
|
|
$
|
327,865
|
|
|
Condensed Consolidated Balance Sheets Line Items
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
ROU assets:
|
|
|
|
|
|
||||
Operating lease ROU assets
|
Operating lease assets
|
|
$
|
49,349
|
|
|
$
|
51,700
|
|
Finance lease ROU assets
|
Property, plant and equipment, net
|
|
54,482
|
|
|
56,793
|
|
||
Total ROU assets
|
|
$
|
103,831
|
|
|
$
|
108,493
|
|
|
Operating lease liabilities:
|
|
|
|
|
|
||||
Current operating lease liabilities
|
Current portion of operating lease liabilities
|
|
$
|
11,512
|
|
|
$
|
10,763
|
|
Noncurrent operating lease liabilities
|
Operating lease liabilities, less current portion
|
|
45,057
|
|
|
48,299
|
|
||
Total operating lease liabilities
|
|
$
|
56,569
|
|
|
$
|
59,062
|
|
|
Finance lease liabilities:
|
|
|
|
|
|
||||
Current finance lease liabilities
|
Accounts payable and accrued expenses
|
|
$
|
5,799
|
|
|
$
|
5,672
|
|
Noncurrent finance lease liabilities
|
Other liabilities
|
|
29,706
|
|
|
31,312
|
|
||
Total finance lease liabilities
|
|
$
|
35,505
|
|
|
$
|
36,984
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
Condensed Consolidated Statements of Operations Line Items
|
|
2020
|
|
2019
|
||||
Operating lease cost
|
Various (1)
|
|
$
|
3,992
|
|
|
$
|
3,499
|
|
Finance lease cost:
|
|
|
|
|
|
||||
Amortization of ROU assets
|
Various (1)
|
|
$
|
2,311
|
|
|
$
|
2,296
|
|
Interest on lease liabilities
|
Interest expense, net
|
|
$
|
466
|
|
|
$
|
500
|
|
Other lease costs and income:
|
|
|
|
|
|
||||
Variable lease costs (2)
|
Various (1)
|
|
$
|
2,658
|
|
|
$
|
2,089
|
|
Sublease income
|
Various (1)
|
|
$
|
(861
|
)
|
|
$
|
(964
|
)
|
(1)
|
Amounts are included in the Condensed Consolidated Statements of Operations based on the function that the underlying leased asset supports. The following table presents the components of such aggregate amounts for the three months ended March 31, 2020 and 2019 (in thousands):
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cost of revenues
|
$
|
3,328
|
|
|
$
|
2,700
|
|
Selling, general and administrative
|
$
|
4,721
|
|
|
$
|
4,169
|
|
Research and development
|
$
|
51
|
|
|
$
|
51
|
|
(2)
|
Amounts represent variable lease costs incurred that were not included in the initial measurement of the lease liability such as common area maintenance and utilities costs associated with leased real estate and certain costs associated with our automobile leases.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash payments for operating leases
|
$
|
2,981
|
|
|
$
|
3,692
|
|
Operating cash payments for finance leases
|
$
|
648
|
|
|
$
|
473
|
|
Financing cash payments for finance leases
|
$
|
1,184
|
|
|
$
|
1,174
|
|
|
Branded Pharmaceuticals
|
|
Sterile Injectables
|
|
Generic Pharmaceuticals
|
|
International Pharmaceuticals
|
|
Total
|
||||||||||
Goodwill as of December 31, 2019
|
$
|
828,818
|
|
|
$
|
2,731,193
|
|
|
$
|
—
|
|
|
$
|
35,173
|
|
|
$
|
3,595,184
|
|
Effect of currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,387
|
)
|
|
(2,387
|
)
|
|||||
Goodwill impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,786
|
)
|
|
(32,786
|
)
|
|||||
Goodwill as of March 31, 2020
|
$
|
828,818
|
|
|
$
|
2,731,193
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,560,011
|
|
|
Branded Pharmaceuticals
|
|
Sterile Injectables
|
|
Generic Pharmaceuticals
|
|
International Pharmaceuticals
|
|
Total
|
||||||||||
Accumulated impairment losses as of December 31, 2019
|
$
|
855,810
|
|
|
$
|
—
|
|
|
$
|
3,142,657
|
|
|
$
|
500,417
|
|
|
$
|
4,498,884
|
|
Accumulated impairment losses as of March 31, 2020
|
$
|
855,810
|
|
|
$
|
—
|
|
|
$
|
3,142,657
|
|
|
$
|
494,499
|
|
|
$
|
4,492,966
|
|
Cost basis:
|
Balance as of December 31, 2019
|
|
Acquisitions
|
|
Impairments
|
|
Effect of Currency Translation
|
|
Balance as of March 31, 2020
|
||||||||||
Indefinite-lived intangibles:
|
|
|
|
|
|
|
|
|
|
||||||||||
In-process research and development
|
$
|
93,900
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93,900
|
|
Total indefinite-lived intangibles
|
$
|
93,900
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93,900
|
|
Finite-lived intangibles:
|
|
|
|
|
|
|
|
|
|
||||||||||
Licenses (weighted average life of 14 years)
|
$
|
457,402
|
|
|
$
|
—
|
|
|
$
|
(8,700
|
)
|
|
$
|
—
|
|
|
$
|
448,702
|
|
Tradenames
|
6,409
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,409
|
|
|||||
Developed technology (weighted average life of 11 years)
|
5,844,439
|
|
|
—
|
|
|
(55,051
|
)
|
|
(19,839
|
)
|
|
5,769,549
|
|
|||||
Total finite-lived intangibles (weighted average life of 11 years)
|
$
|
6,308,250
|
|
|
$
|
—
|
|
|
$
|
(63,751
|
)
|
|
$
|
(19,839
|
)
|
|
$
|
6,224,660
|
|
Total other intangibles
|
$
|
6,402,150
|
|
|
$
|
—
|
|
|
$
|
(63,751
|
)
|
|
$
|
(19,839
|
)
|
|
$
|
6,318,560
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accumulated amortization:
|
Balance as of December 31, 2019
|
|
Amortization
|
|
Impairments
|
|
Effect of Currency Translation
|
|
Balance as of March 31, 2020
|
||||||||||
Finite-lived intangibles:
|
|
|
|
|
|
|
|
|
|
||||||||||
Licenses
|
$
|
(410,336
|
)
|
|
$
|
(2,429
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(412,765
|
)
|
Tradenames
|
(6,409
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,409
|
)
|
|||||
Developed technology
|
(3,414,138
|
)
|
|
(114,808
|
)
|
|
—
|
|
|
11,934
|
|
|
(3,517,012
|
)
|
|||||
Total other intangibles
|
$
|
(3,830,883
|
)
|
|
$
|
(117,237
|
)
|
|
$
|
—
|
|
|
$
|
11,934
|
|
|
$
|
(3,936,186
|
)
|
Net other intangibles
|
$
|
2,571,267
|
|
|
|
|
|
|
|
|
$
|
2,382,374
|
|
2020
|
$
|
427,824
|
|
2021
|
$
|
389,418
|
|
2022
|
$
|
373,293
|
|
2023
|
$
|
331,379
|
|
2024
|
$
|
292,903
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Goodwill impairment charges
|
$
|
32,786
|
|
|
$
|
86,000
|
|
Other intangible asset impairment charges
|
$
|
63,751
|
|
|
$
|
78,700
|
|
|
March 31, 2020
|
|
December 31, 2019
|
|
$ Change
|
|
% Change
|
|||||||
Contract assets, net (1)
|
$
|
7,325
|
|
|
$
|
—
|
|
|
$
|
7,325
|
|
|
NM
|
|
Contract liabilities, net (2)
|
$
|
6,451
|
|
|
$
|
6,592
|
|
|
$
|
(141
|
)
|
|
(2
|
)%
|
(1)
|
At March 31, 2020, the entire contract asset amount is classified as a noncurrent asset and is included in Other assets. The net increase in contract assets during the three months ended March 31, 2020 was primarily due to the Company’s estimated consideration for the sale of certain intellectual property rights.
|
(2)
|
At both March 31, 2020 and December 31, 2019, approximately $1.4 million of these contract liability amounts are classified as current liabilities and are included in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets. The remaining amounts are classified as noncurrent and are included in Other liabilities. The decrease to contract liabilities was due to approximately $0.1 million in revenue recognized during the period.
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Trade accounts payable
|
$
|
88,211
|
|
|
$
|
101,532
|
|
Returns and allowances
|
213,756
|
|
|
206,248
|
|
||
Rebates
|
115,763
|
|
|
129,056
|
|
||
Chargebacks
|
1,630
|
|
|
1,594
|
|
||
Accrued interest
|
100,249
|
|
|
112,860
|
|
||
Accrued payroll and related benefits
|
59,777
|
|
|
79,869
|
|
||
Accrued royalties and other distribution partner payables
|
116,702
|
|
|
115,816
|
|
||
Acquisition-related contingent consideration—current
|
8,459
|
|
|
6,534
|
|
||
Other
|
150,411
|
|
|
146,440
|
|
||
Total
|
$
|
854,958
|
|
|
$
|
899,949
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||||||||
|
Effective Interest Rate
|
|
Principal Amount
|
|
Carrying Amount
|
|
Effective Interest Rate
|
|
Principal Amount
|
|
Carrying Amount
|
||||||||||
7.25% Senior Notes due 2022
|
7.25
|
%
|
|
$
|
8,294
|
|
|
$
|
8,294
|
|
|
7.25
|
%
|
|
$
|
8,294
|
|
|
$
|
8,294
|
|
5.75% Senior Notes due 2022
|
5.75
|
%
|
|
182,479
|
|
|
182,479
|
|
|
5.75
|
%
|
|
182,479
|
|
|
182,479
|
|
||||
5.375% Senior Notes due 2023
|
5.62
|
%
|
|
210,440
|
|
|
209,126
|
|
|
5.62
|
%
|
|
210,440
|
|
|
209,018
|
|
||||
6.00% Senior Notes due 2023
|
6.28
|
%
|
|
1,439,840
|
|
|
1,427,814
|
|
|
6.28
|
%
|
|
1,439,840
|
|
|
1,426,998
|
|
||||
5.875% Senior Secured Notes due 2024
|
6.14
|
%
|
|
300,000
|
|
|
296,798
|
|
|
6.14
|
%
|
|
300,000
|
|
|
296,647
|
|
||||
6.00% Senior Notes due 2025
|
6.27
|
%
|
|
1,200,000
|
|
|
1,186,326
|
|
|
6.27
|
%
|
|
1,200,000
|
|
|
1,185,726
|
|
||||
7.50% Senior Secured Notes due 2027
|
7.71
|
%
|
|
1,500,000
|
|
|
1,482,675
|
|
|
7.71
|
%
|
|
1,500,000
|
|
|
1,482,212
|
|
||||
Term Loan Facility
|
6.09
|
%
|
|
3,321,088
|
|
|
3,295,558
|
|
|
6.21
|
%
|
|
3,329,625
|
|
|
3,302,675
|
|
||||
Revolving Credit Facility
|
4.13
|
%
|
|
300,000
|
|
|
300,000
|
|
|
4.25
|
%
|
|
300,000
|
|
|
300,000
|
|
||||
Total long-term debt, net
|
|
|
$
|
8,462,141
|
|
|
$
|
8,389,070
|
|
|
|
|
$
|
8,470,678
|
|
|
$
|
8,394,049
|
|
||
Less current portion, net
|
|
|
34,150
|
|
|
34,150
|
|
|
|
|
34,150
|
|
|
34,150
|
|
||||||
Total long-term debt, less current portion, net
|
|
|
$
|
8,427,991
|
|
|
$
|
8,354,920
|
|
|
|
|
$
|
8,436,528
|
|
|
$
|
8,359,899
|
|
•
|
entry into an amendment (the Revolving Credit Facility Amendment) to the Company’s existing credit agreement, which was originally dated April 27, 2017 (the amended credit agreement is described above under the heading “Credit Facilities”);
|
•
|
issuance of $1,500.0 million of 7.50% Senior Secured Notes due 2027 (the 2027 Notes);
|
•
|
repurchase of $1,642.2 million aggregate principal amount ($1,624.0 million aggregate carrying amount) of certain of the Company’s senior unsecured notes for $1,500.0 million in cash, excluding accrued interest (the Notes Repurchases); and
|
•
|
solicitation of consents from the holders of the existing 7.25% Senior Notes due 2022 and 5.75% Senior Notes due 2022 to certain amendments to the indentures governing such notes, which eliminated substantially all of the restrictive covenants, certain events of default and other provisions contained in each such indenture.
|
|
|
Maturities (1)
|
||
2020
|
|
$
|
34,150
|
|
2021
|
|
$
|
34,150
|
|
2022 (2)
|
|
$
|
247,723
|
|
2023
|
|
$
|
1,684,430
|
|
2024 (2)
|
|
$
|
3,770,225
|
|
(1)
|
Certain amounts borrowed pursuant to the Credit Facilities will immediately mature if certain of our senior notes are not refinanced or repaid in full prior to the date that is 91 days prior to the respective stated maturity dates thereof. Accordingly, we may seek to repay or refinance certain senior notes prior to their stated maturity dates. The amounts in this maturities table do not reflect any such early repayment or refinancing; rather, they reflect stated maturity dates.
|
(2)
|
Based on the Company’s borrowings under the Revolving Credit Facility that were outstanding at March 31, 2020, $22.8 million will mature in 2022, with the remainder maturing in 2024.
|
|
Qualified Settlement Funds
|
|
Mesh Liability Accrual
|
||||
Balance as of December 31, 2019
|
$
|
242,842
|
|
|
$
|
454,031
|
|
Additional charges
|
—
|
|
|
30,454
|
|
||
Cash distributions to settle disputes from Qualified Settlement Funds
|
(47,801
|
)
|
|
(47,801
|
)
|
||
Cash distributions to settle disputes
|
—
|
|
|
(17,819
|
)
|
||
Other (1)
|
694
|
|
|
(2,180
|
)
|
||
Balance as of March 31, 2020
|
$
|
195,735
|
|
|
$
|
416,685
|
|
(1)
|
Amounts deposited in the QSFs may earn interest, which is generally used to pay administrative costs of the fund and is reflected in the table above as an increase to the QSF and Mesh Liability Accrual balances. Any interest remaining after all claims have been paid will generally be distributed to the claimants who participated in that settlement. Also included within this line are foreign currency adjustments for settlements not denominated in U.S. dollars.
|
|
Euro Deferred Shares
|
|
Ordinary Shares
|
|
Additional Paid-in Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Loss
|
|
Total Shareholders' Deficit
|
||||||||||||
BALANCE, DECEMBER 31, 2019
|
$
|
45
|
|
|
$
|
23
|
|
|
$
|
8,904,692
|
|
|
$
|
(9,552,214
|
)
|
|
$
|
(219,090
|
)
|
|
$
|
(866,544
|
)
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
129,930
|
|
|
—
|
|
|
129,930
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,437
|
)
|
|
(14,437
|
)
|
||||||
Compensation related to share-based awards
|
—
|
|
|
—
|
|
|
17,645
|
|
|
—
|
|
|
—
|
|
|
17,645
|
|
||||||
Tax withholding for restricted shares
|
—
|
|
|
—
|
|
|
(4,398
|
)
|
|
—
|
|
|
—
|
|
|
(4,398
|
)
|
||||||
Other
|
(1
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
BALANCE, MARCH 31, 2020
|
$
|
44
|
|
|
$
|
23
|
|
|
$
|
8,917,927
|
|
|
$
|
(9,422,284
|
)
|
|
$
|
(233,527
|
)
|
|
$
|
(737,817
|
)
|
|
Euro Deferred Shares
|
|
Ordinary Shares
|
|
Additional Paid-in Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Loss
|
|
Total Shareholders' Deficit
|
||||||||||||
BALANCE, DECEMBER 31, 2018, PRIOR TO THE ADOPTION OF ASC 842, LEASES
|
$
|
46
|
|
|
$
|
22
|
|
|
$
|
8,855,810
|
|
|
$
|
(9,124,932
|
)
|
|
$
|
(229,229
|
)
|
|
$
|
(498,283
|
)
|
Effect of adopting ASC 842, Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,646
|
)
|
|
—
|
|
|
(4,646
|
)
|
||||||
BALANCE, JANUARY 1, 2019
|
$
|
46
|
|
|
$
|
22
|
|
|
$
|
8,855,810
|
|
|
$
|
(9,129,578
|
)
|
|
$
|
(229,229
|
)
|
|
$
|
(502,929
|
)
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,573
|
)
|
|
—
|
|
|
(18,573
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,730
|
|
|
4,730
|
|
||||||
Compensation related to share-based awards
|
—
|
|
|
—
|
|
|
24,733
|
|
|
—
|
|
|
—
|
|
|
24,733
|
|
||||||
Exercise of options
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Tax withholding for restricted shares
|
—
|
|
|
—
|
|
|
(2,414
|
)
|
|
—
|
|
|
—
|
|
|
(2,414
|
)
|
||||||
Other
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
BALANCE, MARCH 31, 2019
|
$
|
45
|
|
|
$
|
22
|
|
|
$
|
8,878,133
|
|
|
$
|
(9,148,151
|
)
|
|
$
|
(224,499
|
)
|
|
$
|
(494,450
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net (gain) loss on sale of business and other assets (1)
|
$
|
(8,192
|
)
|
|
$
|
1,294
|
|
Foreign currency (gain) loss, net (2)
|
(5,639
|
)
|
|
1,716
|
|
||
Net loss from our investments in the equity of other companies (3)
|
249
|
|
|
2,086
|
|
||
Other miscellaneous, net
|
(392
|
)
|
|
(294
|
)
|
||
Other (income) expense, net
|
$
|
(13,974
|
)
|
|
$
|
4,802
|
|
(1)
|
Amounts primarily relate to the sales of various ANDAs.
|
(2)
|
Amounts relate to the remeasurement of the Company’s foreign currency denominated assets and liabilities.
|
(3)
|
Amounts relate to the income statement impacts of our investments in the equity of other companies, including investments accounted for under the equity method.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Income (loss) from continuing operations before income tax
|
$
|
21,249
|
|
|
$
|
(1,709
|
)
|
Income tax (benefit) expense
|
$
|
(136,332
|
)
|
|
$
|
10,903
|
|
Effective tax rate
|
(641.6
|
)%
|
|
(638.0
|
)%
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Numerator:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
157,581
|
|
|
$
|
(12,612
|
)
|
Loss from discontinued operations, net of tax
|
(27,651
|
)
|
|
(5,961
|
)
|
||
Net income (loss)
|
$
|
129,930
|
|
|
$
|
(18,573
|
)
|
Denominator:
|
|
|
|
||||
For basic per share data—weighted average shares
|
227,198
|
|
|
224,594
|
|
||
Dilutive effect of ordinary share equivalents
|
5,816
|
|
|
—
|
|
||
For diluted per share data—weighted average shares
|
233,014
|
|
|
224,594
|
|
•
|
For the full year 2020, we expect increased revenues from our Sterile Injectables segment as compared to 2019, primarily driven by increased sales of VASOSTRICT®. Beginning late in the first quarter of 2020, we experienced a significant increase in sales volumes for VASOSTRICT® compared to pre-COVID-19 levels resulting from increased utilization and channel inventory stocking of this product, primarily to treat patients infected with COVID-19. We expect that there will be an increase in revenues in the second quarter of 2020 compared to the first quarter, primarily due to higher utilization and channel inventory stocking. During the second half of 2020, we anticipate a period of destocking with a subsequent return toward pre-COVID-19 purchasing levels. Additionally, we expect the increase in VASOSTRICT® in 2020 to be partially offset by decreases in certain other Sterile Injectables, primarily due to assumed competitive pressures not related to COVID-19.
|
•
|
For the full year 2020, we expect a decline in revenues from the Specialty Products portfolio of our Branded Pharmaceuticals segment as compared to 2019. During the last two weeks of the first quarter of 2020, we began to experience decreased demand as compared to pre-COVID-19 levels for physician administered products, including XIAFLEX®, SUPPRELIN® LA and AVEED®, due to physician office closures and a decline in patients electing to be treated. We expect to see a continuation of the decline in demand for these products during the second quarter of 2020, followed by a gradual increase in volumes beginning in the second half of the year to the extent that physician and patient activities return toward pre-COVID-19 levels.
|
•
|
For the full year 2020, we expect a decline in revenues from our Generic Pharmaceuticals segment as compared to 2019, driven by modified production schedules to safely maintain operations in response to COVID-19, which could result in potential temporary supply decreases and potential launch delays for certain medications in this segment, as well as continued competitive pressures on certain commoditized generic products not related to COVID-19. We expect this decline to be partially offset by sales resulting from certain 2019 product launches, as further described below, and increased demand compared to pre-COVID-19 levels resulting from the utilization of certain of our generic products used to treat patients infected with COVID-19.
|
•
|
For the full year 2020, we expect declines in revenues from the Established Products portfolio of our Branded Pharmaceuticals segment and the International Pharmaceuticals segment as compared to 2019, primarily driven by competitive pressures impacting these product portfolios.
|
|
Three Months Ended March 31,
|
|
% Change
|
|||||||
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|||||
Total revenues, net
|
$
|
820,405
|
|
|
$
|
720,411
|
|
|
14
|
%
|
Cost of revenues
|
388,799
|
|
|
391,909
|
|
|
(1
|
)%
|
||
Gross margin
|
$
|
431,606
|
|
|
$
|
328,502
|
|
|
31
|
%
|
Gross margin percentage
|
52.6
|
%
|
|
45.6
|
%
|
|
|
|||
Selling, general and administrative
|
$
|
166,768
|
|
|
$
|
151,123
|
|
|
10
|
%
|
Research and development
|
31,615
|
|
|
33,486
|
|
|
(6
|
)%
|
||
Litigation-related and other contingencies, net
|
(17,176
|
)
|
|
6
|
|
|
NM
|
|
||
Asset impairment charges
|
97,785
|
|
|
165,448
|
|
|
(41
|
)%
|
||
Acquisition-related and integration items, net
|
12,462
|
|
|
(37,501
|
)
|
|
NM
|
|
||
Interest expense, net
|
132,877
|
|
|
132,675
|
|
|
—
|
%
|
||
Gain on extinguishment of debt
|
—
|
|
|
(119,828
|
)
|
|
(100
|
)%
|
||
Other (income) expense, net
|
(13,974
|
)
|
|
4,802
|
|
|
NM
|
|
||
Income (loss) from continuing operations before income tax
|
$
|
21,249
|
|
|
$
|
(1,709
|
)
|
|
NM
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Amortization of intangible assets (1)
|
$
|
117,237
|
|
|
$
|
145,599
|
|
Continuity and separation benefits and other cost reduction initiatives (2)
|
$
|
6,238
|
|
|
$
|
—
|
|
(1)
|
Amortization expense fluctuates based on changes in the total amount of amortizable intangible assets and the rate of amortization in effect for each intangible asset, both of which can vary based on factors such as the amount and timing of acquisitions, dispositions, asset impairment charges, transfers between indefinite- and finite-lived intangibles assets, changes in foreign currency rates and changes in the composition of our intangible assets impacting the weighted average useful lives and amortization methodologies being utilized. The decrease during the three months ended March 31, 2020 was primarily driven by asset impairment charges and decreases in the rate of amortization expense for certain assets.
|
(2)
|
Amounts primarily relate to certain accelerated depreciation charges and employee continuity and separation benefits.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Goodwill impairment charges
|
$
|
32,786
|
|
|
$
|
86,000
|
|
Other intangible asset impairment charges
|
63,751
|
|
|
78,700
|
|
||
Property, plant and equipment impairment charges
|
1,248
|
|
|
748
|
|
||
Total asset impairment charges
|
$
|
97,785
|
|
|
$
|
165,448
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Interest expense
|
$
|
136,373
|
|
|
$
|
137,106
|
|
Interest income
|
(3,496
|
)
|
|
(4,431
|
)
|
||
Interest expense, net
|
$
|
132,877
|
|
|
$
|
132,675
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net (gain) loss on sale of business and other assets
|
$
|
(8,192
|
)
|
|
$
|
1,294
|
|
Foreign currency (gain) loss, net
|
(5,639
|
)
|
|
1,716
|
|
||
Net loss from our investments in the equity of other companies
|
249
|
|
|
2,086
|
|
||
Other miscellaneous, net
|
(392
|
)
|
|
(294
|
)
|
||
Other (income) expense, net
|
$
|
(13,974
|
)
|
|
$
|
4,802
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Income (loss) from continuing operations before income tax
|
$
|
21,249
|
|
|
$
|
(1,709
|
)
|
Income tax (benefit) expense
|
$
|
(136,332
|
)
|
|
$
|
10,903
|
|
Effective tax rate
|
(641.6
|
)%
|
|
(638.0
|
)%
|
|
Three Months Ended March 31,
|
|
% Change
|
|||||||
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|||||
Branded Pharmaceuticals
|
$
|
204,073
|
|
|
$
|
203,525
|
|
|
—
|
%
|
Sterile Injectables
|
336,390
|
|
|
270,048
|
|
|
25
|
%
|
||
Generic Pharmaceuticals
|
251,283
|
|
|
218,526
|
|
|
15
|
%
|
||
International Pharmaceuticals (1)
|
28,659
|
|
|
28,312
|
|
|
1
|
%
|
||
Total net revenues from external customers
|
$
|
820,405
|
|
|
$
|
720,411
|
|
|
14
|
%
|
(1)
|
Revenues generated by our International Pharmaceuticals segment are primarily attributable to external customers located in Canada.
|
|
Three Months Ended March 31,
|
|
% Change
|
|||||||
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|||||
Specialty Products:
|
|
|
|
|
|
|||||
XIAFLEX®
|
$
|
89,072
|
|
|
$
|
68,507
|
|
|
30
|
%
|
SUPPRELIN® LA
|
19,720
|
|
|
22,056
|
|
|
(11
|
)%
|
||
Other Specialty (1)
|
25,505
|
|
|
24,403
|
|
|
5
|
%
|
||
Total Specialty Products
|
$
|
134,297
|
|
|
$
|
114,966
|
|
|
17
|
%
|
Established Products:
|
|
|
|
|
|
|||||
PERCOCET®
|
$
|
27,703
|
|
|
$
|
30,760
|
|
|
(10
|
)%
|
EDEX®
|
8,568
|
|
|
5,971
|
|
|
43
|
%
|
||
Other Established (2)
|
33,505
|
|
|
51,828
|
|
|
(35
|
)%
|
||
Total Established Products
|
$
|
69,776
|
|
|
$
|
88,559
|
|
|
(21
|
)%
|
Total Branded Pharmaceuticals (3)
|
$
|
204,073
|
|
|
$
|
203,525
|
|
|
—
|
%
|
(1)
|
Products included within Other Specialty are NASCOBAL® Nasal Spray and AVEED®.
|
(2)
|
Products included within Other Established include, but are not limited to, LIDODERM® and TESTOPEL®.
|
(3)
|
Individual products presented above represent the top two performing products in each product category for the three months ended March 31, 2020 and/or any product having revenues in excess of $25 million during any quarterly period in 2020 or 2019.
|
|
Three Months Ended March 31,
|
|
% Change
|
|||||||
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|||||
VASOSTRICT®
|
$
|
202,904
|
|
|
$
|
139,137
|
|
|
46
|
%
|
ADRENALIN®
|
56,512
|
|
|
47,322
|
|
|
19
|
%
|
||
Ertapenem for injection
|
17,874
|
|
|
32,219
|
|
|
(45
|
)%
|
||
APLISOL®
|
9,867
|
|
|
12,381
|
|
|
(20
|
)%
|
||
Other Sterile Injectables (1)
|
49,233
|
|
|
38,989
|
|
|
26
|
%
|
||
Total Sterile Injectables (2)
|
$
|
336,390
|
|
|
$
|
270,048
|
|
|
25
|
%
|
(1)
|
Products included within Other Sterile Injectables include ephedrine sulfate injection and others.
|
(2)
|
Individual products presented above represent the top two performing products within the Sterile Injectables segment for the three months ended March 31, 2020 and/or any product having revenues in excess of $25 million during any quarterly period in 2020 or 2019.
|
|
Three Months Ended March 31,
|
|
% Change
|
|||||||
|
2020
|
|
2019
|
|
2020 vs. 2019
|
|||||
Branded Pharmaceuticals
|
$
|
98,422
|
|
|
$
|
95,283
|
|
|
3
|
%
|
Sterile Injectables
|
$
|
263,896
|
|
|
$
|
196,183
|
|
|
35
|
%
|
Generic Pharmaceuticals
|
$
|
57,327
|
|
|
$
|
50,411
|
|
|
14
|
%
|
International Pharmaceuticals
|
$
|
14,197
|
|
|
$
|
12,095
|
|
|
17
|
%
|
|
March 31, 2020
|
|
December 31, 2019
|
||||
Total current assets
|
$
|
2,735,335
|
|
|
$
|
2,586,218
|
|
Less: total current liabilities
|
1,346,991
|
|
|
1,460,289
|
|
||
Working capital
|
$
|
1,388,344
|
|
|
$
|
1,125,929
|
|
Current ratio (total current assets divided by total current liabilities)
|
2.0:1
|
|
|
1.8:1
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Net cash flow provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
62,556
|
|
|
$
|
(90,583
|
)
|
Investing activities
|
(15,963
|
)
|
|
(16,377
|
)
|
||
Financing activities
|
(14,483
|
)
|
|
(33,771
|
)
|
||
Effect of foreign exchange rate
|
(1,894
|
)
|
|
537
|
|
||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
|
$
|
30,216
|
|
|
$
|
(140,194
|
)
|
•
|
causing a substantial portion of our cash flows from operations to be dedicated to the payment of legal or related expenses and therefore unavailable for other purposes, including the payment of principal and interest on our indebtedness, our operations, capital expenditures and future business opportunities;
|
•
|
limiting our ability to adjust to changing market conditions, causing us to be more vulnerable to periods of negative or slow growth in the general economy or in our business, causing us to be unable to carry out capital spending that is important to our growth and placing us at a competitive disadvantage;
|
•
|
limiting our ability to attract and retain key personnel;
|
•
|
causing us to be unable to maintain compliance with or making it more difficult for us to satisfy our financial obligations under certain of our outstanding debt obligations, causing a downgrade of our debt and long-term corporate ratings (which could increase our cost of capital) and exposing us to potential events of default (if not cured or waived) under financial and operating covenants contained in our or our subsidiaries’ outstanding indebtedness;
|
•
|
limiting our ability to incur additional borrowings under the covenants in our then-existing facilities or to obtain additional debt or equity financing for working capital, capital expenditures, business development, debt service requirements, acquisitions or general corporate or other purposes, or to refinance our indebtedness; and/or
|
•
|
otherwise causing us to be unable to fund our operations and liquidity needs, such as future capital expenditures and payment of our indebtedness.
|
•
|
make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments on our indebtedness;
|
•
|
limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general business purposes;
|
•
|
limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other general business purposes;
|
•
|
expose us to the risk of rising interest rates with respect to the borrowings under our variable rate indebtedness;
|
•
|
require us to use a substantial portion of our cash on hand and/or from future operations to make debt service payments;
|
•
|
limit our flexibility to plan for, or react to, changes in our business and industry;
|
•
|
place us at a competitive disadvantage compared to our less leveraged competitors; and
|
•
|
increase our vulnerability to the impact of adverse economic and industry conditions, such as those resulting from the COVID-19 pandemic, which may further limit our ability to satisfy our financial obligations.
|
|
|
Incorporated by Reference from:
|
||
Number
|
Description
|
File Number
|
Filing Type
|
Filing Date
|
10.1
|
Not applicable; filed herewith
|
|||
10.2
|
Not applicable; filed herewith
|
|||
10.3
|
Not applicable; filed herewith
|
|||
10.4
|
Not applicable; filed herewith
|
|||
31.1
|
Not applicable; filed herewith
|
|||
31.2
|
Not applicable; filed herewith
|
|||
32.1
|
Not applicable; furnished herewith
|
|||
32.2
|
Not applicable; furnished herewith
|
|||
101.INS
|
iXBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
Not applicable; submitted herewith
|
||
101.SCH
|
iXBRL Taxonomy Extension Schema Document
|
Not applicable; submitted herewith
|
||
101.CAL
|
iXBRL Taxonomy Extension Calculation Linkbase Document
|
Not applicable; submitted herewith
|
||
101.DEF
|
iXBRL Taxonomy Extension Definition Linkbase Document
|
Not applicable; submitted herewith
|
||
101.LAB
|
iXBRL Taxonomy Extension Label Linkbase Document
|
Not applicable; submitted herewith
|
||
101.PRE
|
iXBRL Taxonomy Extension Presentation Linkbase Document
|
Not applicable; submitted herewith
|
||
104
|
Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101
|
Not applicable; submitted herewith
|
|
ENDO INTERNATIONAL PLC
|
|
(Registrant)
|
|
|
|
/S/ BLAISE COLEMAN
|
Name:
|
Blaise Coleman
|
Title:
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/S/ MARK T. BRADLEY
|
Name:
|
Mark T. Bradley
|
Title:
|
Executive Vice President, Chief Financial Officer
|
|
(Principal Financial Officer)
|
1 Year Endo Chart |
1 Month Endo Chart |
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