In many ways the fortunes of Biospecifics Technologies Corporation (BSTC) are tied to those of Endo International (ENDP). Endo was previously in the middle of a war being fought over rising drug prices. It had been lumped in with price gougers like Bausch Health (BHC) and Turing Pharmaceuticals. Endo has since  de-emphasized or shuttered pain-related drugs like Opana that became synonymous with price-gouging and/or the opioid crisis.

Endo has worked hard to put the opioid crisis behind it and find new catalysts to offset its sagging generics business. It continues to turn corner after strong Q1 2020 results. Revenue from Sterile Injectables was $336 million, up 25% Y/Y. Vasostrict and Adrenalin rose 46% and 19%, respectively. Without aid from COVID-19 Sterile Injectables would have risen by about 8% Y/Y and Adrenalin would have been up by about 20%. Revenue from Branded products was flat. The company has de-emphasized pain-related drugs, which has hurt the segment. U.S. Generics revenue rose 15% primarily due to recent product launches and accelerated prescription fulfillment related to COVID-19.

Xiaflex and Sterile Injectables now represent 52% of total revenue, up from 47% in the year earlier period. Their combined revenue of $425 million grew 26% Y/Y. They represent a moat that could help offset revenue declines in other product lines. BSTC licenses Xiaflex to Endo and its upside is tremendous. Read more:


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