Endo Health Solutions (ENDP -5.9%) shares sink on widening Q4 losses after the drug maker warned of a significant writedown and high litigation expenses earlier this month.
Revenue plunged 27% Y/Y, and the company issued a weak FY 2014 outlook, seeing EPS of $3.40-$3.65 vs. $3.93 analyst consensus estimate, and revenues of $2.50B-$2.62B vs. $2.56B consensus.
Lidoderm sales plummeted 87% to $36.4M while Opana ER sales dropped 14% to $53.7M: ENDP agreed to pay $193M earlier this month to settle allegations that it marketed Lidoderm for uses not approved by regulatory authorities.
Other Q2 takeaways: Opana ER sales fall 38% Y/Y. Q1 2012 stock outs resulted in higher shipments in last year's Q2, so this was probably a tough compare, although the company said last quarter it was factoring in a 20% Y/Y drop in Opana ER net revenues for the full year, so sales may be coming in lighter than expected. Also: a non-AB generic launched earlier this year.