Endo (NDOI) Q4 2024 earnings summary

Executive summary

• Announced the proposed combination of Mallinckrodt and Endo, creating a global, diversified pharmaceutical leader with branded and generic businesses.

• 2024 revenues reached $1,760M and adjusted EBITDA $637M, with XIAFLEX® hitting a record $516M, up 9% year-over-year.

• Three new sterile injectable products launched, including ADRENALIN® RTU bag; FDA approval received for Indore manufacturing site.

• Endo shareholders receive $80 million in cash and 49.9% ownership; Mallinckrodt shareholders hold 50.1%.

• Boards of both companies approved the transaction, expected to close in H2 2025, subject to shareholder and regulatory approvals.

Financial highlights

• Q4 2024 revenues were $467M, down from $498M in Q4 2023, mainly due to competition in Generics and Sterile Injectables.

• Adjusted EBITDA for Q4 was $164M, nearly flat year-over-year; adjusted net income fell to $70M from $151M due to higher interest and tax expenses.

• Mallinckrodt 2024 net sales: $1.98 billion (+6.1% YoY); adjusted EBITDA: $603.7 million (+5.6% YoY).

• XIAFLEX® revenues exceeded $500 million, up 9% year-over-year.

• Unrestricted cash balance of $387M at year-end.

Outlook and guidance

• Combined company 2025 pro forma revenue: $3.6 billion; adjusted EBITDA: $1.2 billion.

• Endo 2025 revenue guidance: $1,775M–$1,860M; adjusted EBITDA: $620M–$650M.

• Mallinckrodt 2025 net sales guidance: $1.7–$1.8 billion; adjusted EBITDA: $480–$520 million.

• $150 million in annual pre-tax run-rate synergies expected by year three, $75 million in year one.

• Adjusted gross margin expected at ~64% for 2025.