Endo Reports Third Quarter Financial Results And Updates 2012 Financial Guidance

   Endo Reports Third Quarter Financial Results And Updates 2012 Financial
                                   Guidance

PR Newswire

CHADDS FORD, Pa., Nov. 5, 2012

CHADDS FORD, Pa., Nov.5, 2012 /PRNewswire/ --

  oTotal quarterly revenues of $750 million, decreased 1 percent versus prior
    year
  oQualitest quarterly net sales increase by 12 percent versus prior year
  oReformulated Version of OPANA^® ER with INTAC^® Technology Designed to be
    Crush-Resistant Accounts for more than 90 Percent of OPANA ER Total
    Prescription Volume
  oCompany now expects adjusted diluted EPS in the range of $5.00 to $5.10;
    Now expects reported diluted (GAAP) EPS in the range of $0.87 to $0.97
  oCompany now expects revenues of approximately $3.05 billion in 2012

Endo Health Solutions (Nasdaq: ENDP) today reported a 1 percent decrease in
total revenues during the third quarter of 2012 to $750 million, compared with
$759 million in the same quarter of 2011. Net income for the three months
ended September30, 2012 was $54 million, compared with net income of $41
million reported in the comparable 2011 period.

Reported net income includes a benefit of $46 million to reduce a previous
non-cash charge associated with the company's LIDODERM^® license and
settlement agreement with Watson Laboratories, Inc. in accordance with the
terms of that agreement. Reported net income also includes the effect of
charges in the amount of $83 million for the period reflecting the settlement
of certain legal matters relating to price reporting that were disclosed
previously as well as an estimated minimum amount to resolve the ongoing
investigation by the government focused primarily on the sale, marketing and
promotion of LIDODERM^®, which has been disclosed previously.

As detailed in the supplemental financial information below, adjusted net
income for the three months ended September30, 2012 was $153 million,
compared with $151 million in the same period in 2011. Reported diluted
earnings per share for the quarter ended September30, 2012 were $0.45,
compared with $0.34 in the third quarter of 2011. Adjusted diluted earnings
per share for the same period were $1.28 compared with $1.25 reported in 2011.

"Endo had a solid third quarter," said Dave Holveck, president and CEO of
Endo. "As the team and I outlined at our Investor Day on October 4th, we
believe the assets that Endo has assembled to offset the potential loss of
exclusivity for LIDODERM provide us with multiple opportunities for growth,
the potential for long-term expansion and produce a durable set of cash
flows."



FINANCIAL PERFORMANCE
AT A GLANCE
($ in
thousands,
except per

share
amounts)
            3rd Quarter                     Nine Months Ended
                                            September 30,
            2012        2011        Change  2012          2011          Change
Total       $ 750,482   $ 759,078   (1)  %  $ 2,226,303   $ 1,926,715   16  %
Revenues
Reported    $ 53,809    $ 40,649    32   %  $ (24,071)    $ 151,019     NM
Net Income
Reported    $ 0.45      $ 0.34      32   %  $ (0.21)      $ 1.24        NM
Diluted EPS
Adjusted    $ 153,093   $ 151,089   1    %  $ 413,546     $ 399,967     3   %
Net Income
Adjusted    $ 1.28      $ 1.25      2    %  $ 3.42        $ 3.29        4   %
Diluted EPS



ENDO PHARMACEUTICALS

Branded pharmaceutical sales of $417 million for the third quarter represented
a decrease of 2 percent versus the prior year. Net sales of Opana ER
decreased 36 percent for the third quarter on 33 percent lower prescriptions.
The decrease in Opana ER net sales is primarily a result of the first quarter
supply disruption due to the Novartis plant closure in Lincoln, Neb., and a
slower return to growth for Opana ER.

Net sales of LIDODERM increased 15 percent for the third quarter on 5 percent
prescription growth. The increase in LIDODERM net sales is primarily a result
of changes with respect to royalty obligations among Endo Pharmaceuticals,
Hind Healthcare Inc., and Teikoku Seiyaku Co. Ltd.; changes that began in
November 2011 and have been previously described in our filings with the U.S.
Securities and Exchange Commission.

During third quarter 2012, Watson announced it had received approval of its
ANDA for its lidocaine 5% patch. Endo anticipates Watson will launch its
lidocaine 5% patch in September 2013 pursuant to the terms of the settlement
and license agreement resolving all ongoing patent litigation among the
parties related to Watson's generic version of LIDODERM. The agreement
resolved the inherent uncertainties of this litigation and reflects the
uncertainty created by the regulatory challenges facing generic manufacturers
seeking to market a generic version of LIDODERM.

During the third quarter of 2012, Endo announced that according to IMS data
estimates, the reformulated OPANA ER (oxymorphone HCI) designed to be
crush-resistant incorporating Grunenthal's INTAC Technology accounts for more
than 90 percent of the OPANA ER total prescription volume.

Additionally, Endo Pharmaceuticals has submitted two Citizen Petitions
encouraging the FDA to partner with the company in an effort to employ
standards that will better manage patient access to vital pain management
medications like OPANA ER while also helping drive appropriate use of the
products.

In August 2012, BioDelivery Sciences International, Inc. and Endo announced
the initiation of the Phase 3 clinical program for BEMA^® Buprenorphine for
the treatment of moderate to severe chronic pain. This Phase 3 program will
consist of two efficacy studies, one in opioid naive and one in opioid
experienced subjects. Both studies are anticipated to be completed by late
2013 or early 2014.

As a result of recent discussions with the FDA regarding the current
Urocidin^™ phase III clinical trial Endo has decided to end the study before
its scheduled completion. Endo, and its partner Bioniche Life Sciences Inc.,
are considering potential next steps for the program.

QUALITEST

Generic product net sales of $166 million for the third quarter 2012
represented an increase of 12 percent over the same period last year. The
increase was driven by strong demand for our subsidiary Qualitest's
diversified product portfolio and favorable pricing, resulting in gross profit
of approximately 40 percent. Strong net sales growth is expected for
Qualitest for the remainder of 2012. Net sales growth is expected to be
driven by strong demand for Qualitest's commercial products and a stable
pricing environment. Qualitest remains focused on process improvements and
increased efficiencies in order to enhance manufacturing capacity.

In August 2012, Qualitest announced its launch of a generic version of
Singulair^® (montelukast sodium) Tablets and Chewable Tablets. Total combined
branded and generic sales for Montelukast Sodium Tablets and Chewables in the
U.S. for the 12 months ended June 30, 2012 were approximately $4.9 billion,
according to IMS Health.

In October 2012, Qualitest received through its partner, Alembic
Pharmaceuticals Limited, FDA approval of three products, Irbesartan Tablets,
Irbesartan/HCTZ Tablets and Modafinil Tablets. Total combined branded and
generic sales for Irbesartan Tablets, Irbesartan/HCTZ Tablets and Modafinil
Tablets in the U.S. for the 12 months ended June 30, 2012 were approximately
$1.7 billion, according to IMS Health. For Qualitest, new product approvals
supplement growth and the continued optimization of Qualitest's commercial
portfolio.

AMS

Devices sales, driven by our June 2011 acquisition of AMS, were $113 million
for the third quarter 2012. Men's Health, led by sales of the AMS 800^®
Artificial Urinary Sphincter, decreased 12 percent in the third quarter of
2012, compared with same period last year. This declining sales rate for the
period reflects the temporary withdrawal of the AMS 800 Artificial Urinary
Sphincter from the market during second quarter 2011 and subsequent rebound in
third quarter 2011. On a year-to-date pro forma basis, net sales for Men's
Health products increased 6 percent, which is more indicative and in-line with
the company's expectations for mid-to-high single digit growth. AMS's benign
prostatic hyperplasia (BPH) business, led by the decreasing share of
procedural volumes for the GreenLight XPS^™ console and the accompanying
MoXy^® fiber, decreased 4 percent in the third quarter of 2012. Women's
Health sales decreased 23 percent in the third quarter of 2012, compared with
same period last year. Net sales declines in Women's Health were driven by
year-over-year declines in procedural volumes reflecting recent industry
shifts following the FDA's advisory committee meeting regarding the use of
surgical mesh in pelvic organ prolapse. AMS remains focused on physician and
patient education activities as part of an overall effort to continue to
encourage physicians and patients to discuss the risks and benefits of AMS's
surgical mesh devices as an important treatment option for patients who suffer
from stress urinary incontinence and pelvic organ prolapse.

HEALTHTRONICS

Services sales of $54 million for the third quarter 2012 represented an
increase of 1 percent over the same period last year. Third quarter growth
for HealthTronics' was driven by the increasing sales of lab services and the
strategic addition of electronic medical records to HealthTronics' offerings.
The company expects enhanced top-line growth from its Services segment in 2012
and beyond from the recent addition of HealthTronics' electronic medical
records offering that is focused on practices specializing in urology and an
expanding set of partnerships in HealthTronics' Endocare^® cryoablation
therapy business.

2012 Financial Guidance

Endo's estimates are based on actual results for the nine months ended
September30, 2012 and management's current belief about prescription trends,
pricing levels, inventory levels and the anticipated timing of future product
launches and events. The company's guidance for reported (GAAP) earnings per
share does not include any estimates for the potential future changes in the
fair value of contingent consideration or for potential new corporate
development transactions. For the full year ended Dec31, 2012, Endo
estimates:

  oTotal revenue of approximately $3.05 billion
  oTotal Endo Pharmaceuticals segment revenue of approximately $1.665
    billion
  oTotal Qualitest segment revenue of approximately $660 million
  oTotal AMS segment revenue of approximately $510 million
  oTotal HealthTronics segment revenue of approximately $220 million
  oReported (GAAP) diluted earnings per share to be between $0.87 and $0.97
  oAdjusted diluted earnings per share to be between $5.00 and $5.10
  oCash flow from operations of at least $600 million
  oCapital expenditures to be approximately $120 million

The company's 2012 guidance is based on certain assumptions including:

  oAdjusted gross margin of between 68 percent and 69 percent
  oAdjusted effective tax rate of between 30.5 percent and 31.5 percent
  oWeighted average number of common shares outstanding of approximately 120
    million shares for the year ended Dec31, 2012

Balance Sheet Update

During the third quarter of 2012, Endo made mandatory payments of
approximately $28 million and voluntary prepayments of approximately $73
million to reduce the outstanding principal of term loan debt associated with
the acquisition of AMS. This brings the total repayments on this debt to
approximately $624 million, inclusive of $538 million in cumulative voluntary
prepayments, through third quarter 2012.

Additionally, during the third quarter of 2012, Endo repurchased approximately
$100 million of its common stock following the Board of Directors'
authorization to repurchase up to $450 million of its common stock through
March 2015. Additional repurchases may vary based on market conditions,
securities law limitations and other factors.

Conference Call Information

Endo will conduct a conference call with financial analysts to discuss this
news release today at 8:30 a.m. ET. Investors and other interested parties
may call 866-711-8198 (domestic) or +1 617-597-5327 (international) and enter
passcode 82681027. Please dial in 10 minutes prior to the scheduled start
time.

A replay of the call will be available from Nov5 at 10:30 a.m. ET until 12:00
p.m. ET on Nov. 19, 2012 by dialing 888-286-8010 (domestic) or +1 617-801-6888
(international) and entering passcode 66955070.

A simultaneous webcast of the call can be accessed by visiting www.endo.com.
In addition, a replay of the webcast will be available until 12:00 p.m. ET on
Nov. 19, 2012. The replay can be accessed by clicking on "Events" in the
Investor Relations section of the website.

Supplemental Financial Information

The following tables provide a reconciliation of our reported (GAAP)
statements of operations to our adjusted statements of operations for each of
the three months ended September30, 2012 and 2011 (in thousands, except per
share data):





Three Months Ended September 30,    Actual
2012 (unaudited)                    Reported     Adjustments       Adjusted
                                    (GAAP)
REVENUES                            $  750,482   $  —              $  750,482
COSTS AND EXPENSES:
Cost of revenues                    294,267      (52,762)    (1)   241,505
Selling, general and administrative 210,446      (10,480)    (2)   199,966
Research and development            48,952       (6,421)     (3)   42,531
Patent litigation settlement items, (46,238)     46,238      (4)   —
net
Litigation-related contingencies    82,600       (82,600)    (5)   —
Asset impairment charges            11,163       (11,163)    (6)   —
Acquisition-related and integration 5,776        (5,776)     (7)   —
items, net
OPERATING INCOME                    $  143,516   $  122,964        $  266,480
INTEREST EXPENSE, NET               45,505       (5,209)     (8)   40,296
NET LOSS ON EXTINGUISHMENT OF DEBT  1,789        (1,789)     (9)   —
OTHER EXPENSE (INCOME), NET         (250)        —                 (250)
INCOME BEFORE INCOME TAX            $  96,472    $  129,962        $  226,434
INCOME TAX                          28,287       30,678      (10)  58,965
CONSOLIDATED NET INCOME             $  68,185    $  99,284         $  167,469
Less: Net income attributable to    14,376       —                 14,376
noncontrolling interests
NET INCOME ATTRIBUTABLE TO ENDO
HEALTH                              $  53,809    $  99,284         $  153,093

SOLUTIONS INC.
DILUTED (LOSS) EARNINGS PER SHARE   $  0.45                        $  1.28
DILUTED WEIGHTED AVERAGE SHARES     119,579                        119,579

Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
     To exclude amortization of commercial intangible assets related to
     marketed products of $55,999, net milestone payments of $1,440, an
(1)  adjustment to the accrual for the payment to Impax related to sales of
     OPANA ER of $(6,000) and certain integration costs and separation
     benefits incurred in connection with continued efforts to enhance the
     company's operations of $1,323.
     To exclude certain integration costs and separation benefits incurred in
(2)  connection with continued efforts to enhance the company's operations of
     $7,744 and amortization of customer relationships of $2,736.
     To exclude milestone payments to partners of $3,898 and certain
(3)  integration costs and separation benefits incurred in connection with
     continued efforts to enhance the company's operations of $2,523.
(4)  To exclude the net impact of the Watson litigation settlement.
(5)  To exclude the net impact of accruals for litigation-related
     contingencies.
(6)  To exclude asset impairment charges.
     To exclude acquisition-related and integration costs of $5,680 and a
(7)  loss of $96 recorded to reflect the change in fair value of the
     contingent consideration associated with the Qualitest acquisition.
(8)  To exclude additional interest expense as a result of adopting ASC
     470-20.
     To exclude the unamortized debt issuance costs written off and recorded
(9)  as a loss on extinguishment of debt upon our third quarter 2012
     prepayments on our Term Loan indebtedness.
     To reflect the cash tax savings results from our recent acquisitions and
(10) the tax effect of the pre-tax adjustments above at applicable tax
     rates.





Three Months Ended September 30,     Actual
2011 (unaudited)                     Reported     Adjustments      Adjusted
                                     (GAAP)
REVENUES                             $  759,078   $  —             $  759,078
COSTS AND EXPENSES:
Cost of revenues                     302,172      (80,625)    (1)  221,547
Selling, general and administrative  244,359      (15,761)    (2)  228,598
Research and development             43,884       (2,355)     (3)  41,529
Asset impairment charges             22,691       (22,691)    (4)  —
Acquisition-related and integration  5,818        (5,818)     (5)  —
items, net
OPERATING INCOME                     $  140,154   $  127,250       $  267,404
INTEREST EXPENSE, NET                52,792       (4,754)     (6)  48,038
OTHER INCOME, NET                    (3,000)      2,636       (7)  (364)
INCOME BEFORE INCOME TAX             $  90,362    $  129,368       $  219,730
INCOME TAX                           34,057       18,928      (8)  52,985
CONSOLIDATED NET INCOME              $  56,305    $  110,440       $  166,745
Less: Net income attributable to     15,656       —                15,656
noncontrolling interests
NET INCOME ATTRIBUTABLE TO ENDO
HEALTH                               $  40,649    $  110,440       $  151,089

SOLUTIONS INC.
DILUTED (LOSS) EARNINGS PER SHARE    $  0.34                       $  1.25
DILUTED WEIGHTED AVERAGE SHARES      120,847                       120,847

Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
    To exclude amortization of commercial intangible assets related to
    marketed products of $55,337, the impact of inventory step-up recorded as
(1) part of acquisition accounting of $23,937 and certain integration costs
    and separation benefits incurred in connection with continued efforts to
    enhance the company's operations of $1,351.
    To exclude certain integration costs and separation benefits incurred in
(2) connection with continued efforts to enhance the company's operations of
    $12,252 and amortization of customer relationships of $3,509.
(3) To exclude milestone and upfront payments to partners.
(4) To exclude asset impairment charges.
    To exclude acquisition-related and integration costs of $6,046 and a gain
(5) of $(228) recorded to reflect the change in fair value of the contingent
    consideration associated with the Indevus and Qualitest acquisitions.
(6) To exclude additional interest expense as a result of adopting ASC 470-20.
(7) To exclude the gain on hedging activities for foreign currencies.
(8) To reflect the cash tax savings results from our recent acquisitions and
    the tax effect of the pre-tax adjustments above at applicable tax rates.



The following tables provide a reconciliation of our reported (GAAP)
statements of operations to our adjusted statements of operations for each of
the nine months ended September30, 2012 and 2011 (in thousands, except per
share data):





Nine Months Ended September 30, Actual
2012 (unaudited)                Reported       Adjustments       Adjusted
                                (GAAP)
REVENUES                        $  2,226,303   $  —              $  2,226,303
COSTS AND EXPENSES:
Cost of revenues                953,657        (272,857)   (1)   680,800
Selling, general and            698,522        (30,044)    (2)   668,478
administrative
Research and development        183,067        (56,201)    (3)   126,866
Patent litigation settlement    85,123         (85,123)    (4)   —
items, net
Litigation-related              82,600         (82,600)    (5)   —
contingencies
Asset impairment charges        54,163         (54,163)    (6)   —
Acquisition-related and         16,580         (16,580)    (7)   —
integration items, net
OPERATING INCOME                $  152,591     $  597,568        $  750,159
INTEREST EXPENSE, NET           138,386        (15,354)    (8)   123,032
NET LOSS ON EXTINGUISHMENT OF   7,215          (7,215)     (9)   —
DEBT
OTHER EXPENSE, NET              498            (300)       (10)  198
(LOSS) INCOME BEFORE INCOME TAX $  6,492       $  620,437        $  626,929
INCOME TAX                      (9,263)        182,820     (11)  173,557
CONSOLIDATED NET (LOSS) INCOME  $  15,755      $  437,617        $  453,372
Less: Net income attributable   39,826         —                 39,826
to noncontrolling interests
NET (LOSS) INCOME ATTRIBUTABLE  $  (24,071)    $  437,617        $  413,546
TO ENDO HEALTH SOLUTIONS INC.
DILUTED (LOSS) EARNINGS PER     $  (0.21)                        $  3.42
SHARE
DILUTED WEIGHTED AVERAGE SHARES 116,688                          121,083

Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
     To exclude amortization of commercial intangible assets related to
     marketed products of $162,414, the impact of inventory step-up recorded
     as part of acquisition accounting of $880, the accrual for the payment to
(1)  Impax related to sales of OPANA ER of $104,000, net milestone payments of
     $2,927 and certain integration costs and separation benefits incurred in
     connection with continued efforts to enhance the company's operations of
     $2,636.
     To exclude certain integration costs and separation benefits incurred in
(2)  connection with continued efforts to enhance the company's operations of
     $21,799 and amortization of customer relationships of $8,245.
     To exclude milestone payments to partners of $53,678 and certain
(3)  integration costs and separation benefits incurred in connection with
     continued efforts to enhance the company's operations of $2,523.
(4)  To exclude the net impact of the Watson litigation settlement.
(5)  To exclude the net impact of accruals for litigation-related
     contingencies.
(6)  To exclude asset impairment charges.
     To exclude acquisition-related and integration costs of $16,552 and a
(7)  loss of $28 recorded to reflect the change in fair value of the
     contingent consideration associated with the Qualitest acquisition.
(8)  To exclude additional interest expense as a result of adopting ASC
     470-20.
     To exclude the unamortized debt issuance costs written off and recorded
(9)  as a loss on extinguishment of debt upon our 2012 prepayments on our Term
     Loan indebtedness.
(10) To exclude milestone payments to partners.
(11) To reflect the cash tax savings results from our recent acquisitions and
     the tax effect of the pre-tax adjustments above at applicable tax rates.





Nine Months Ended September 30,  Actual
2011 (unaudited)                 Reported       Adjustments      Adjusted
                                 (GAAP)
REVENUES                         $  1,926,715   $  —             $  1,926,715
COSTS AND EXPENSES:
Cost of revenues                 770,427        (183,640)   (1)  586,787
Selling, general and             581,878        (20,177)    (2)  561,701
administrative
Research and development         126,854        (18,346)    (3)  108,508
Asset impairment charges         22,691         (22,691)    (4)  —
Acquisition-related and          29,517         (29,517)    (5)  —
integration items, net
OPERATING INCOME                 $  395,348     $  274,371       $  669,719
INTEREST EXPENSE, NET            97,142         (14,014)    (6)  83,128
NET LOSS ON EXTINGUISHMENT OF    8,548          (8,548)     (7)  —
DEBT
OTHER INCOME, NET                (2,777)        2,636       (8)  (141)
INCOME BEFORE INCOME TAX         $  292,435     $  294,297       $  586,732
INCOME TAX                       100,283        45,349      (9)  145,632
CONSOLIDATED NET INCOME          $  192,152     $  248,948       $  441,100
Less: Net income attributable to 41,133         —                41,133
noncontrolling interests
NET INCOME ATTRIBUTABLE TO ENDO
HEALTH                           $  151,019     $  248,948       $  399,967

SOLUTIONS INC.
DILUTED (LOSS) EARNINGS PER      $  1.24                         $  3.29
SHARE
DILUTED WEIGHTED AVERAGE SHARES  121,432                         121,432

Notes to reconciliation of our GAAP statements of operations to our adjusted
statements of operations:
    To exclude amortization of commercial intangible assets related to
    marketed products of $132,571, the impact of inventory step-up recorded as
(1) part of acquisition accounting of $40,718, certain integration costs and
    separation benefits incurred in connection with continued efforts to
    enhance the company's operations of $1,351 and milestone payments to
    partners of $9,000.
    To exclude certain integration costs and separation benefits incurred in
(2) connection with continued efforts to enhance the company's operations of
    $16,247 and amortization of customer relationships of $3,930.
(3) To exclude milestone and upfront payments to partners.
(4) To exclude asset impairment charges.
    To exclude acquisition-related and integration costs of $36,975 and a gain
(5) of $(7,458) recorded to reflect the change in fair value of the contingent
    consideration associated with the Indevus and Qualitest acquisitions.
(6) To exclude additional interest expense as a result of adopting ASC 470-20.
    To exclude the unamortized debt issuance costs written off and recorded as
(7) a loss on extinguishment of debt upon the early termination of our 2010
    Credit Facility.
(8) To exclude the gain on hedging activities for foreign currencies.
(9) To reflect the cash tax savings results from our recent acquisitions and
    the tax effect of the pre-tax adjustments above at applicable tax rates.



See Endo's Current Report on Form 8-K filed today with the Securities and
Exchange Commission for an explanation of Endo's reasons for using non-GAAP
measures.



Reconciliation of Projected GAAP Diluted Earnings Per Share to Adjusted
Diluted Earnings Per Share Guidance for 2012
                                                   Year Ending
                                                   December 31, 2012
Projected GAAP diluted income per common share              $ 0.87 To  $ 0.97
Upfront and milestone-related payments to partners 0.52               0.52
Amortization of commercial intangible assets and   1.90               1.90
inventory step-up
Acquisition and integration costs related to       0.42               0.42
recent acquisitions.
One-time payment now expected to be made to Impax  0.87               0.87
Labs
Litigation-related contingencies                   0.69               0.69
Watson litigation settlement                       0.71               0.71
Impairment of long-lived assets                    0.45               0.45
Interest expense adjustment for ASC 470-20 and     0.23               0.23
other treasury related items
Tax effect of pre-tax adjustments at the
applicable tax rates and certain other
                                                   (1.66)             (1.66)
expected cash tax savings as a result of recent
acquisitions
Diluted adjusted income per common share guidance  $          5.00 To $  5.10



The company's guidance is being issued based on certain assumptions including:

  oCertain of the above amounts are based on estimates and there can be no
    assurance that Endo will achieve these results.
  oIncludes all completed business development transactions as of Nov5,
    2012.

About Endo
Endo Health Solutions Inc. (Endo) is a US-based diversified healthcare company
that is redefining healthcare value by finding solutions for the unmet needs
of patients along care pathways for pain management, pelvic health, urology,
endocrinology and oncology. Through our operating companies: Endo
Pharmaceuticals, Qualitest, AMS and HealthTronics, Endo is dedicated to
improving care through a combination of branded products, generics, devices,
technology and services that creates maximum value for patients, providers and
payers alike. Learn more at www.endo.com.

(Tables Attached)

The following tables present Endo's unaudited Net Revenues for the three and
nine months ended September30, 2012 and 2011:

Endo Health Solutions Inc.

Net Revenues (unaudited)

(in thousands)
                 Three Months Ended September  Percent  Nine Months Ended September 30,   Percent
                 30,                           Growth                                     Growth
                 2012             2011                  2012               2011
Endo
Pharmaceuticals:
LIDODERM®        $      238,282   $  207,364   15    %  $      676,302     $  592,929     14    %
OPANA® ER        62,232           97,753       (36   %  236,731            275,221        (14)  %
Voltaren® Gel    35,483           36,260       (2)   %  79,173             104,213        (24)  %
PERCOCET®        24,209           28,130       (14)  %  73,413             82,765         (11)  %
FROVA®           15,706           14,815       6     %  45,352             42,186         8     %
SUPPRELIN® LA    14,534           12,695       14    %  42,777             36,432         17    %
VANTAS®          4,114            5,013        (18)  %  12,352             10,612         16    %
VALSTAR®         8,394            6,295        33    %  20,717             16,220         28    %
FORTESTA® Gel    8,823            8,409        5     %  21,526             9,468          127   %
Other Branded    933              4,948        (81)  %  1,788              17,527         (90)  %
Products
Royalty and      3,935            3,829        3     %  12,874             11,719         10    %
Other Revenue
Total Endo       $      416,645   $  425,511   (2)   %  $      1,223,005   $  1,199,292   2     %
Pharmaceuticals
Total Qualitest  $      166,070   $  147,975   12    %  $      471,310     $  415,431     13    %
American Medical
Systems:
Men's Health     58,316           66,548       (12)  %  192,728            76,316         153   %
Women's Health   29,399           38,240       (23)  %  95,763             46,027         108   %
BPH Therapy      25,589           26,731       (4)   %  83,110             35,988         131   %
Total AMS        113,304          131,519      (14)  %  371,601            158,331        135   %
HealthTronics    54,463           54,073       1     %  160,387            153,661        4     %
Total Revenue    750,482          759,078      (1)   %  2,226,303          1,926,715      16    %



The following table presents Endo's unaudited Pro forma Net Revenues for the
seven quarters ended September30, 2012 giving effect to the AMS acquisition
as if it had occurred on January1, 2011:



Endo Health Solutions Inc.
Net Pro Forma Revenues (unaudited)
(in thousands)
                 2011                                                2012
Endo             Q1           Q2           Q3           Q4           Q1           Q2           Q3
Pharmaceuticals:
LIDODERM®        $  189,725   $  195,840   $  207,364   $  232,252   $  210,014   $  228,006   $  238,282
OPANA® ER        84,615       92,853       97,753       109,118      81,086       93,413       62,232
Voltaren® Gel    31,298       36,655       36,260       38,488       —            43,690       35,483
PERCOCET®        26,960       27,675       28,130       21,835       23,380       25,824       24,209
FROVA®           13,208       14,163       14,815       15,994       15,644       14,002       15,706
SUPPRELIN® LA    11,222       12,515       12,695       13,683       13,446       14,797       14,534
VANTAS®          3,545        2,054        5,013        8,366        3,892        4,346        4,114
VALSTAR®         4,801        5,124        6,295        5,301        6,236        6,087        8,394
FORTESTA® Gel    (969)        2,028        8,409        5,401        5,822        6,881        8,823
Other Branded    6,970        5,609        4,948        4,224        (265)        1,120        933
Products
Royalty and      4,221        3,751        3,829        3,813        4,319        4,620        3,935
Other Revenue
Total Endo       $  375,596   $  398,267   $  425,511   $  458,475   $  363,574   $  442,786   $  416,645
Pharmaceuticals
Total Qualitest  $  134,409   $  133,047   $  147,975   $  151,423   $  145,345   $  159,895   $  166,070
American Medical
Systems:
Men's Health     67,407       47,790       66,548       69,520       67,440       66,972       58,316
Women's Health   45,325       46,689       38,240       39,482       33,898       32,466       29,399
BPH Therapy      28,054       29,784       26,731       32,966       28,828       28,693       25,589
Total AMS        $  140,786   $  124,263   $  131,519   $  141,968   $  130,166   $  128,131   $  113,304
HealthTronics(1) 50,103       49,485       54,073       51,540       51,548       54,376       54,463
Total Revenue    $  700,894   $  705,062   $  759,078   $  803,406   $  690,633   $  785,188   $  750,482
(1) The HealthTronics segment does not include the pro forma impact of pre-acquisition revenues from the
recently acquired electronic medical records providers, Intuitive Medical Software (IMS) and meridianEMR,
Inc.



The following table presents unaudited condensed consolidated Balance Sheet
data at September30, 2012 and December31, 2011:



                                                  September30,  December31,
                                                  2012           2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                         $  256,917     $  547,620
Accounts receivable, net                          759,594        733,222
Inventories, net                                  363,747        262,419
Other assets                                      332,241        244,835
Total current assets                              $  1,712,499   $  1,788,096
PROPERTY, PLANT AND EQUIPMENT, NET                333,119        297,731
GOODWILL                                          2,569,288      2,558,041
OTHER INTANGIBLES, NET                            2,285,187      2,504,124
OTHER ASSETS                                      120,698        144,591
TOTAL ASSETS                                      $  7,020,791   $  7,292,583
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses             $  1,224,658   $  993,216
Other current liabilities                         130,974        128,562
Total current liabilities                         $  1,355,632   $  1,121,778
DEFERRED INCOME TAXES                             581,975        617,677
LONG-TERM DEBT, LESS CURRENT PORTION, NET         3,069,518      3,424,329
OTHER LIABILITIES                                 83,149         89,208
STOCKHOLDERS' EQUITY:
Total Endo Health Solutions Inc. stockholders'    $  1,868,200   $  1,977,690
equity
Noncontrolling interests                          62,317         61,901
Total stockholders' equity                        $  1,930,517   $  2,039,591
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $  7,020,791   $  7,292,583



The following table presents unaudited condensed consolidated Statement of
Cash Flow data for the nine months ended September30, 2012 and 2011:

                                               Nine Months Ended September 30,
                                               2012               2011
OPERATING ACTIVITIES:
Consolidated net income                        $        15,755    $   192,152
Adjustments to reconcile consolidated net
income to Net cash provided by

operating activities
Depreciation and amortization                  211,780            169,187
Stock-based compensation                       44,532             34,224
Amortization of debt issuance costs and        27,101             24,283
premium / discount
Other                                          (25,771)           10,433
Changes in assets and liabilities which        23,735             (11,748)
provided (used) cash:
Net cash provided by operating activities      297,132            418,531
INVESTING ACTIVITIES:
Purchases of property, plant and equipment,    (89,047)           (38,462)
net
Acquisitions, net of cash acquired             (3,210)            (2,368,357)
Other                                          13,100)            39,631
Net cash used in investing activities          (79,157)           (2,367,188)
FINANCING ACTIVITIES:
Purchase of common stock, net of issuance of   (151,394)          (34,702)
common stock from treasury
Cash distributions to noncontrolling interests (39,234)           (39,392)
Principal (payments) on indebtedness, net of   (334,701)          2,030,449
proceeds
Exercise of Endo Health Solutions Inc. stock   15,317             21,780
options
Other                                          1,239              (76,418)
Net cash (used in) provided by financing       (508,773)          1,901,717
activities
Effect of foreign exchange rate                95                 397
NET DECREASE IN CASH AND CASH EQUIVALENTS      (290,703)          (46,543)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 547,620            466,214
CASH AND CASH EQUIVALENTS, END OF PERIOD       $        256,917   $   419,671



Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Statements including
words such as "believes," "expects," "anticipates," "intends," "estimates,"
"plan," "will," "may," "look forward," "intend," "guidance," "future" or
similar expressions are forward-looking statements. Because these statements
reflect our current views, expectations and beliefs concerning future events,
these forward-looking statements involve risks and uncertainties. Investors
should note that many factors, as more fully described under the caption "Risk
Factors" in our Form 10-K, Form 10-Q and Form 8-K filings with the Securities
and Exchange Commission and as otherwise enumerated herein or therein, could
affect our future financial results and could cause our actual results to
differ materially from those expressed in forward-looking statements contained
in our Annual Report on Form 10-K. The forward-looking statements in this
press release are qualified by these risk factors. These are factors that,
individually or in the aggregate, could cause our actual results to differ
materially from expected and historical results. We assume no obligation to
publicly update any forward-looking statements, whether as a result of new
information, future developments or otherwise.

SOURCE Endo Health Solutions

Website: http://www.endo.com
Contact: Investors/Media, Blaine Davis, +1-610-459-7158; Investors, Jonathan
Neely, +1-610-459-6645; Media, Kevin Wiggins, +1-610-459-7281