Investing.com -- Shares in Endo International PLC (NASDAQ:ENDP)plummeted nearly 25% in after-hours trading, after the specialty pharmaceutical maker slashed its full-year outlook and a top executive announced his departure from the company on Thursday.
During Endo's first quarter of Fiscal Year 2016, the company reported diluted earnings per share of 1.08 on revenues of $964 million, up 35% from the same period last year. For the period, Endo's adjusted earnings per share fell nearly 8%, amid heightened competition for its Voltaren Gel brand aimed at treating Osteoarthritis and unforeseen delays in regulatory action with a host of other products. Analysts expected to see adjusted earnings of 1.05 per share on revenues of $960.3 million.
"Despite increasing competitive and pricing pressures across both our Generics and Branded businesses, Endo was able to deliver first quarter results largely in line with our expectations," said Rajiv De Silva, President and CEO of Endo. "However, as we move further into 2016, we are rebasing our full-year financial expectations due to the impact of several previously unanticipated headwinds: new competitive entrants, including for Voltaren Gel; greater than expected price erosion across the Generics sector; and delays on regulatory actions related to certain Endo products."
In addition, Endo announced on Thursday that Brian Lortie, U.S. Branded Pharmaceuticals, has decided to step down from his position upon the appointment of a successor. Lortie, who joined the company in 2009, played an integral role in the company's development of its Xiaflex and Belbura brands, De Silva said. Xiaflex, which received FDA approval in 2010 for a hand condition known as Dupuytren's contracture, was originally developed to help treat Peyronie's Disease, a connective tissue disorder affecting adult men.
"I would like to thank Brian for his important contributions to Endo. He led the U.S. Branded business through a time of great transformation – from a franchise largely focused on a small number of legacy pain products to a diversified business with growth drivers across multiple therapeutic areas including pain, specialty, orthopedics and urology," De Silva said.
Endo International now expects adjusted EPS of 4.50 to 4.80 this year, along with revenues of $3.87 to $4.03 billion. The downwardly revised outlook falls short of analysts' expectations of revenue of $4.3 billion on EPS of 5.68.
Shares in Endo International plunged 6.44 or 24.22% to 20.15 in after-hours trading.