Endo International plc 2015 Annual Report
Endo international plc 2015 annual report
endo international plc
2015 annual report

To Our Shareholders

Fellow Shareholders:

As I reflect on 2015, it was a year of transformation for Endo as a result of our collective commitment to improving lives while creating value. Across each of our three business segments as well as our overall corporate strategy, we achieved key milestones and continued to work towards our goal to become a leading global specialty pharmaceutical company.


U.S. Branded Pharmaceuticals

In 2015, we revitalized our product portfolio and established a robust, de-risked research and development (R&D) pipeline through our acquisition of Auxilium Pharmaceuticals. We also secured FDA approval for a future growth driver, BELBUCA™, the first and only buprenorphine buccal film for chronic pain. Additionally, we extended our Voltaren® Gel licensing agreement through 2023, including rights to any future Authorized Generic (AG) product, and received a favorable OPANA® ER IP ruling that could help position the product more competitively in the future.


U.S. Generic Pharmaceuticals

We created a Top 4 U.S. generics company (based on IMS data) through our September 2015 acquisition of Par Pharmaceutical. This transaction also enabled us to build greater critical mass in our generics product portfolio and triple the size of our generics R&D pipeline. Our generics capabilities are now more focused on first-to-file and paragraph IV products, as well as higher barrier-to-entry and alternative dosage products. Throughout the year, we also continued to optimize our generics business operations.


International Pharmaceuticals

In 2015, we transformed the profile of our International Pharmaceuticals business, with two product launches by Paladin Labs and a rebasing of our emerging market businesses for growth. We continued to optimize our SOMAR product portfolio and focused Litha on its core pharmaceutical business through product acquisitions and key divestitures.


Endo Strategy

In 2015, we continued to transform the Endo corporate infrastructure and best position the Company for continued growth and expansion. We divested our AMS Men’s Health business in line with our specialty pharmaceuticals focus and in early 2016 announced that we would wind down our ASTORA Women’s Health business by the end of the first quarter 2016. We also continued to build out and enhance our Irish infrastructure. More broadly, we pursued a corporate strategy that has established a foundation for future organic growth and expanding margins moving forward.

While these achievements have helped position Endo for growth, we are also addressing challenges that are facing the broader specialty pharmaceutical sector as well as our own business in 2016. Endo is continuing its commitment to provide patients with products that are safe and effective when used as prescribed and to addressing opioid abuse. We support a broad range of programs that provide awareness and education around the appropriate use of pain medications. We are also working to address the pricing and competitive pressures felt in 2015 across the broader generics industry and remain committed to appropriate product pricing.

Going forward, we will continue to shape our future by proactively managing our business and these sector headwinds. I see 2016 as a year of execution, of delivering on the promise and potential of our businesses and of creating value for our shareholders. The strength of our businesses and the talent of our people are critical to Endo’s ability to adapt and ultimately continue to succeed in a rapidly changing healthcare industry.


Moving into 2016, our key priorities for the year are guided by our Key Values:


Leadership Aspire to Excellence We are building a leading global specialty pharmaceutical company and will continue to focus our corporate strategy on transforming Endo to achieve that goal.


Teamwork Unite to Deliver Superior Results With a proven and experienced management team and more than 6,000 dedicated employees worldwide, we are focused on collaborating to drive results. We are also committed to providing compelling development and growth opportunities for our team members.


Innovation & Continuous Improvement Drive for Relentless Progress We are committed to continuing to innovate and advancing our robust R&D pipelines. In our U.S. Branded Pharmaceuticals business, this means progress across a broad range of XIAFLEX® clinical programs. In our U.S. Generics business, we aim to continue our pipeline momentum and productivity with a goal of launching approximately 30 new products in 2016.


Results Driven Perform to Exceed Expectations 2016 is a year of operational execution for Endo. We have transformed our business and built the corporate infrastructure needed to successfully launch BELBUCA™ as a differentiated, long-acting opioid product for patients in need of treatment options for chronic pain. We are also focused on continuing to drive year-over-year growth for XIAFLEX® in Dupuytren’s contracture and Peyronie’s disease. Our integration of the Par Pharmaceutical generics business is continuing and we are working to generate future growth across our U.S. Generics portfolio, supported by the launches of first-to-file and first-to-market generic Seroquel XR® and generic Zetia® products at the end of 2016. Finally, we expect 2016 to be a year of continued revenue growth and margin expansion for our International emerging markets businesses SOMAR and Litha. We are committed to performance and execution in 2016.


Customer Focus Commit to Creating Value Our business is about serving customers while creating value. We are committed to providing physicians and patients with specialty branded pharmaceuticals, generic products and over-the-counter medications that play an important role in helping millions of patients lead healthier lives.

We believe the Endo story will be one marked by execution, growth, increased profitability and value creation over the long term. I am looking forward to a year that continues to deliver on our mission of improving lives while creating value.

Thank you for your continued support.

Sincerely,

Rajiv De Silva
President and Chief Executive Officer

Shaping the future

At Endo, we are committed to improving lives while creating value. Toward this goal, we seek to manage our Company for the future in order to create continued, sustainable growth. Our 2015 Digital Annual Report uses the metaphor of origami, the art of transforming a simple piece of paper into magnificent shapes, to illustrate this cycle of growth and the evolution of our core businesses: U.S. Branded, U.S. Generic and International Pharmaceuticals. We believe that our Key Values—leadership, teamwork, innovation, being results-driven and having a sharp customer focus—are what drives us to success in not only managing for the future, but also actively shaping it on behalf of our customers and shareholders.