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:
- Total revenue to be between $2.78bn and $2.86bn
- Reported (GAAP) diluted loss per share to be between $1.56 and $1.36
- Adjusted diluted earnings per share to be between $4.00 and $4.20
- Adjusted 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:
- Adjusted gross margin of between 63 percent and 65 percent
- Year-over-year mid-to-high single-digit percentage decrease of Adjusted Operating Expenses
- Adjusted interest expense of approximately $220m
- Adjusted effective tax rate of between 23 percent and 24 percent