Endo International (ENDP) reported Q1 2019 revenue of $720.41 million and non-GAAP eps of $0.53. The company beat on non-GAAP eps and beat on revenue by $28.1 million. This was an important quarter the company; Endo needs to prove the strength of its franchise amid headwinds in its Generics business. Competitors like Teva (TEVA) and Mylan (MYL) are also experiencing severe headwinds in the space.

Last quarter management discussed the company’s transition from dependence on pain-related drugs and Generics to value-added products with higher margins:

Moving to slide 3, approximately two years ago, we outlined a strategic vision for Endo and laid out our key strategic priorities. We articulated a clear vision in which we aspire to be a highly focused generics and specialty branded company, delivering quality medicines to patients in need through excellence in development, manufacturing and commercialization. We also told you that this represented a multi-year turnaround plan …

We transformed our legacy US branded pharmaceutical business, focused on pain into a highly focused US branded specialty pharmaceutical business with best in class commercial capabilities. We divested non-core assets and businesses and we repositioned our US generics business by executing a comprehensive product portfolio and manufacturing footprint rationalization initiative.

Q1 results suggested Endo is making that transition a reality. It also appears to be firing on all cylinders. Its $720 million in revenue was up 3% Y/Y, besting Mylan and Teva whose revenue has been in decline. Read more:


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