Endo completes acquisition of DAVA Pharmaceuticals

              Endo completes acquisition of DAVA Pharmaceuticals

PR Newswire

DUBLIN, Aug. 6, 2014

DUBLIN, Aug. 6, 2014 /PRNewswire/ --

  oAdds high-margin marketed generics portfolio, robust near-term ANDA
    pipeline to Endo's existing generics portfolio
  oAbility to leverage Endo's proven commercial expertise to maximize
    profitable growth
  oCompany raises expected 2014 revenues to a range from $2.78 billion to
    $2.86 billion, an increase versus prior range of $2.72 billion to $2.80
    billion.
  oCompany raises expected 2014 adjusted diluted EPS to a range from $4.00 to
    $4.20, an increase versus prior range of $3.80 to $4.00.
  oCompany expects 2014 reported diluted (GAAP) loss per share to be in the
    range from $1.56 to $1.36.

Endo International plc (NASDAQ: ENDP) (TSX: ENL) today announced that it has
completed the acquisition of DAVA Pharmaceuticals, Inc., a privately-held
company specializing in generic pharmaceuticals, with a portfolio of marketed,
pre-launch and pipeline products, for $575 million in cash, with additional
cash consideration of up to $25 million contingent on the achievement of
certain sales milestones. The DAVA portfolio is well-positioned for continued
strong financial performance with its existing commercial products and
attractive near-term pipeline, and is a natural fit with Endo's U.S. generics
business.

"We are encouraged by the earlier than expected close of the DAVA acquisition
and are excited by the addition of the business to our generics portfolio."
said Rajiv De Silva, president and chief executive officer of Endo. "The
closing of DAVA further strengthens Endo's generics platform and enhances our
earnings growth and cash flow in 2014 and beyond."

2014 Financial Guidance

Endo's estimates are based on projected results for the twelve months ended
Dec. 31, 2014 and management's current belief about prescription and procedure
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 potential new corporate
development transactions. For the full twelve months ended Dec. 31, 2014, at
current exchange rates, Endo estimates:

  oTotal revenue to be between $2.78 billion and $2.86 billion
  oReported (GAAP) diluted loss per share to be between$1.56 and $1.36
  oAdjusted diluted earnings per share to be between $4.00 and $4.20
  oAdjusted diluted earnings per share assume full year adjusted diluted
    shares outstanding of 157 million

The company's 2014 guidance is based on certain assumptions including:

  oAdjusted gross margin of between 63 percent and 65 percent
  oYear-over-year mid-to-high single-digit percentage decrease of Adjusted
    Operating Expenses
  oAdjusted interest expense of approximately $220 million
  oAdjusted effective tax rate of between 23 percent and 24 percent

Non-GAAP Adjusted net income and its components and Non-GAAP Adjusted diluted
EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income
and its components and diluted EPS. Despite the importance of these measures
to management in goal setting and performance measurement, we stress that
these are Non-GAAP financial measures that have no standardized meaning
prescribed by U.S. GAAP and, therefore, have limits in their usefulness to
investors. Because of the non-standardized definitions, Non-GAAP Adjusted net
income and its components (unlike U.S. GAAP net income and its components) may
not be comparable to the calculation of similar measures of other companies.
These Non-GAAP financial measures are presented solely to permit investors to
more fully understand how management assesses performance. 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 2014
                                                        Year Ending
                                                        December 31, 2014
Projected GAAP diluted income per common share          $ (1.56)  To $ (1.36)
Upfront and milestone-related payments to partners      0.17         0.17
Amortization of commercial intangible assets and fair   1.70         1.70
value inventory step-up
Acquisition related, integration and restructuring      1.15         1.15
charges
Basic to Diluted weighted average share count effect    0.08         0.08
Charges for litigation and other legal matters          4.53         4.53
Interest expense adjustment for non-cash interest
related to our 1.75% Convertible Senior Subordinated    0.09         0.09
Notes and other treasury related items
Tax effect of pre-tax adjustments at the applicable tax
rates and certain other expected cash tax savings as a  (2.16)       (2.16)
result of acquisitions
Diluted adjusted income per common share guidance       $ 4.00    To $ 4.20

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 August 6,
    2014.

About Endo:

Endo International plc is a global specialty healthcare company focused on
improving patients' lives while creating shareholder value. Endo develops,
manufactures, markets, and distributes quality branded pharmaceutical, generic
and device products through its operating companies. Endo has global
headquarters in Dublin, Ireland, and U.S. headquarters in Malvern, PA. Learn
more at www.endo.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 and Canadian securities
legislation. 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 Endo's current views,
expectations and beliefs concerning future events, these forward-looking
statements involve risks and uncertainties. Although Endo believes that these
forward-looking statements and information are based upon reasonable
assumptions and expectations, readers should not place undue reliance on them,
or any other forward-looking statements or information in this news release.
Investors should note that many factors, as more fully described in the
documents filed by Endo with securities regulators in the United States and
Canada including under the caption "Risk Factors" in Endo's Form 10-K, Form
10-Q and Form 8-K filings with the Securities and Exchange Commission and with
securities regulators in Canada on System for Electronic Document Analysis and
Retrieval ("SEDAR") and as otherwise enumerated herein or therein, could
affect Endo's future financial results and could cause Endo's actual results
to differ materially from those expressed in forward-looking statements
contained in Endo's 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 Endo's actual results to
differ materially from expected and historical results. Endo assumes no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future developments or otherwise, except as may be
required under applicable securities law.

SOURCE Endo International plc

Website: http://www.endo.com
Contact: Investors/Media: Blaine Davis, +353-1-669-6635, (484) 216-7158,
Investors: Jonathan Neely, (484) 216-6645, Media: Heather Zoumas Lubeski,
(484) 216-6829
 
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