Endo International plc

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Endo International plc
public liability company
Traded as
ISINIE00BJ3V9050
IndustryPharmaceutical
PredecessorEndo Pharmaceuticals Inc. (before the 2014 tax inversion to Ireland)
Founded1997
Headquarters
Key people
Paul Campanelli (CEO), Blaise Coleman (CFO)
RevenueIncrease US$ 3,468.8 million (2017)
Websiteendo.com

Endo International plc is an Irish–tax registered generics and specialty branded pharmaceutical company that generated over 93% of 2017 sales from the U.S. healthcare system. While Endo's management, operations, and customers are almost exclusively U.S.–based, in 2013 Endo executed a corporate tax inversion to Ireland to avoid U.S. corporate taxes on their U.S. drug sales, and to avail of Ireland's corporate tax system.[1][2][3]

History and Acquisitions[edit]

Endo was created as a result of a management buyout from DuPont Merck in 1997 led by Carol Ammon.[4]

In 2009, Endo bought Indevus Pharmaceuticals to diversify into endocrinology and oncology.[5] The company entered the male hypogonadism market later in 2010 with Fortesta 2% gel.[5] In November 2013, Endo agreed to purchase Paladin Labs Inc for about $1.6 billion to gain access to the Canadian market as well as expand into emerging markets.[6][7]

Endo used the 2013 acquisition of Paladin Labs, and Canadian tax laws, to execute a corporate tax inversion to Ireland.[3][8][1] In July 2015, the Wall Street Journal noted Endo was using Ireland's lower tax rate to acquire U.S.–based life sciences firms and relocate them to Ireland's tax regime (i.e. they could afford to pay more to acquire U.S. competitors).[9]

In October 2014, Endo said it would buy Auxilium Pharmaceuticals for $2.6 billion,[10] along with its testosterone replacement therapy products.[11]

In 2015, Endo acquired the specialty generics and sterile injectables company Par Pharmaceutical for $8.05 billion.[12]

In 2018, Endo settled over 1,200 lawsuits related to its testosterone replacement therapy, Testim, and its undisclosed side effects.[11]

Endo net sales by region (2017)[13]
Region Sales ($ m) Distribution (%)
U.S. Generic 2,281.0 65.8
U.S. Branded 957.5 27.6
Non-U.S. / International 230.3 6.6
Total 3,468.8 100.0

Acquisition attempts[edit]

In early 2014, Endo sought to acquire NuPathe, a speciality pharmaceutical developer, for $105 million.[14] However, Teva prevailed in this acquisition with a substantially higher bid.[15]

Opioids[edit]

Endo is one of the companies named in lawsuits by the states of Ohio,[16] Missouri and Mississippi[17] as responsible for the US opioid epidemic. Its 10-K statement indicates that a majority of the company's US revenue in 2016 was derived from the sale of prescription pain killers, predominantly opioids.[18]

On June 8, 2017, the U.S. Food and Drug Administration (FDA) released a press statement in which it announced that it had requested Endo to withdraw its opioid drug, oxymorphone hydrochloride (Opana ER), from the market. Opana has been linked to outbreaks of HIV, hepatitis C and serious blood disorders.[19] It was the first time that the FDA had "taken steps to remove a currently marketed opioid pain medication from sale due to the public health consequences of abuse."[20]

See also[edit]

References[edit]

  1. ^ a b "Tracking Tax Runaways". Bloomberg News. 1 March 2017. Bloomberg Special Reports: Corporate Tax Inversions
  2. ^ Vanessa Houlder; Vincent Boland; James Politi (29 April 2014). "Tax avoidance: The Irish inversion". Financial Times.
  3. ^ a b John George (11 March 2014). "Endo re-incorporates in Ireland to save millions in taxes". Philadelphia Business Journal. The company was able to legally reincorporate in Ireland only after completing a deal to buy a foreign-based company using at least 20 percent of its own stock. Endo met that threshold by buying Paladin Labs, a Canadian drug manufacturer, for $1.6 billion in a deal that was finalized Feb. 28.
  4. ^ Schneiderman, R.M. (9 April 2007). "Ammon Exits Endo". Forbes.
  5. ^ a b Associated Press (2009-01-06). "Endo to buy Indevus". The Boston Globe. Retrieved 2009-06-28.
  6. ^ Rubin, Ben Fox (5 November 2013). "Endo Health to Buy Paladin Labs for $1.6 Billion". Wall Street Journal.
  7. ^ "Endo Health to Buy Specialty Drug Maker for $1.6 Billion". New York Times Dealbook. November 5, 2013.
  8. ^ "Endo buys Canada's Paladin to counter sliding sales". Reuters. 5 November 2013. The complex deal structure will create a new Irish holding company, which will own both Endo and Paladin, to take advantage of Ireland’s low tax rates.
  9. ^ Liz Hoffman (7 July 2015). "The Tax Inversion Wave Keeps Rolling". Wall Street Journal. Horizon and other inverted companies are using their new, lower tax rates to turbocharge corporate takeovers. Applying those rates, often in the midteens, to profits of companies in the U.S., with a federal corporate rate of 35%, can yield extra savings on top of those traditionally wrung from mergers. Moreover, unlike the U.S., Ireland and most other countries, only tax profits earned in-country, giving companies the freedom and incentive to shift income to still-lower-tax jurisdictions.
  10. ^ "Endo Scores with $2.6B Offer for Auxilium, Which Ends QLT Deal | GEN Genetic Engineering & Biotechnology News - Biotech from Bench to Business | GEN". GEN. October 9, 2014.
  11. ^ a b George, John (12 June 2018). "Endo executes master settlement agreement to resolve testosterone lawsuits". Philadelphia Business Journal. Retrieved 4 July 2018.
  12. ^ Bray, Chad (18 May 2015). "Endo International to Pay $8.05 Billion for Par Pharmaceutical". The New York Times.
  13. ^ "SEC Form 10-K: Endo Pharma public limited company". Securities and Exchange Commission. p. 62. Results of Operations: Net Sales
  14. ^ "Endo to Purchase NuPahte for $150M+". News: Industry Watch. Gen. Eng. Biotechnol. News (paper)|format= requires |url= (help). 34 (2). January 15, 2014. p. 10.
  15. ^ "Teva Outbids Endo, Acquires NuPathe for $144M+". News: Industry Watch. Gen. Eng. Biotechnol. News (paper). 34 (4). February 15, 2014. p. 10.
  16. ^ Dwyer, Colin (31 May 2017). "Ohio Sues 5 Major Drug Companies For 'Fueling Opioid Epidemic'". NPR Online.
  17. ^ Raymond, Nate (21 Jun 2017). "Missouri sues opioid manufacturers, joining two other U.S. states". Reuters.
  18. ^ "Eondo Pharmaceuticals, FORM 10-K". 31 Dec 2016.
  19. ^ "F.D.A. Asks Drug Maker to Stop Selling a Dangerous Opioid". Retrieved 2018-11-18.
  20. ^ "FDA requests removal of Opana ER for risks related to abuse" (Press release). FDA. June 8, 2017.

External links[edit]