Endo delivered a Q2 2018 revenue and earnings beat which sent the stock higher. Revenue from Sterile Injectables was up 21% Y/Y, while Xiaflex (included in Specialty Products) was up 27%. Sterile Injectables and Xiaflex now represent a combined 39% of total Q2 2018 revenues, up from 26% in the year earlier period. If ENDP are looking for a moat these two product lines could be it.
The company confirmed it would announce results of Phase 3 clinical trials for Xiaflex in Q4 2018 – a quarter earlier than expected. Xiaflex treats Dupuytren’s contracture and Peyronie’s disease. Endo is seeking to have the drug indicated to treat cellulite. If approved it could be the only non-surgical treatment for cellulite and potentially disrupt the $15 billion aesthetics industry.
Cellulite results in a localized alteration in the contour of the skin and affects 85 percent to 98 percent of women. Cellulite “occurs when the layer of fat beneath the skin pushes against connective tissue and bulges creating the appearance of lumpy or dimpled skin.” Shocking The Street and beauty bloggers will be present to discuss (1) the cellulite industry, (2) the potential market opportunity for Xiaflex and (3) what it could mean for women.
