Endo, Inc. Reports $392.8 Million Revenue in Q1 2025, Faces Losses Amid Restructuring

Endo, Inc. reported a net revenue of $392.8 million for the first quarter of 2025, a decrease of 6% compared to $419.5 million in the same period of the previous year. The company experienced a loss from continuing operations of $128.6 million, translating to a net loss per share of $1.69. This marks a slight improvement from the $154.2 million loss reported in the first quarter of 2024. The decline in revenue was primarily attributed to competitive pressures in the Sterile Injectables and Generic Pharmaceuticals segments, although the Branded Pharmaceuticals segment saw a 4% increase in revenue, driven by higher sales of XIAFLEX® and SUPPRELIN® LA.

In terms of operational changes, Endo, Inc. has undergone significant restructuring following its emergence from bankruptcy in April 2024. The company has adopted fresh start accounting, which has resulted in a new basis of accounting and a revaluation of its assets and liabilities. As of March 31, 2025, Endo reported total assets of $4.2 billion, with current assets amounting to $1.5 billion. The company’s total liabilities stood at $3.1 billion, including long-term debt of $2.4 billion. The restructuring has also led to a reduction in employee headcount, although specific figures were not disclosed.

Strategically, Endo has entered into a definitive agreement to divest its International Pharmaceuticals business to Knight Therapeutics Inc. for up to $99 million, which includes an upfront payment of approximately $84 million. This transaction is expected to close in mid-2025, pending regulatory approvals. Additionally, on March 13, 2025, Endo announced a transaction agreement with Mallinckrodt plc to combine the two companies, with the deal expected to close in the second half of 2025. Under the terms of the agreement, Endo shareholders will receive shares of Mallinckrodt stock and cash totaling $80 million.

The company’s cash and cash equivalents totaled $369.7 million as of March 31, 2025, down from $387.2 million at the end of 2024. Endo's working capital increased slightly to $963.1 million, reflecting improved cash management despite the ongoing challenges in revenue generation. The company anticipates that its liquidity will be sufficient to meet its operational needs over the next twelve months, although it remains exposed to various risks, including competitive pressures and potential legal liabilities. Looking ahead, Endo expects that the financial results of the combined entity with Mallinckrodt will differ significantly from its historical performance, as the integration of operations and assets progresses.