Endo Pharmaceuticals Holdings Inc.'s (ENDP) first-quarter net income fell 34% on acquisition costs, though excluding them results topped expectations.
In January, Endo said it was expanding beyond pain management into urology, endocrinology and primary-care opportunities by buying Indevus for up to $637 million. The deal, closed during the quarter, is part of a global consolidation wave in the pharmaceutical industry as companies try to diversify so they can cope with the economic downturn and the unpredictability of drug development.
The company reported net income of $39 million, or 33 cents a share, from $59.5 million, or 44 cents a share, a year earlier. Excluding acquisition-related and other costs, earnings rose to 67 cents from 51 cents.
Net sales increased 16% to $335.3 million as generics nearly doubled.
Analysts surveyed by Thomson Reuters predicted earnings of 63 cents a share on revenue of $338 million.
Sales of Lidoderm, used for post-shingles pain, fell 5%, while the post-operation painkiller Percocet had a 6% increase.
Shares of Endo, which reiterated its 2009 forecast, closed at $18.26 Tuesday and weren't active premarket. The stock is down 29% this year.
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