The multiple problems that prompted Malvern-based Endo Health Solutions to cut 15 percent of its workforce in June have not abated - indeed, they might worsen - but chief executive officer Rajiv De Silva said Tuesday that there are no immediate plans for more layoffs.
"We don't need to make further employee reductions to meet our cost savings projections," De Silva said of the promise to financial markets that it would cut $150 million from yearly operating expenses by the end of 2013 and $325 million by the end of 2014.
Endo makes brand-name, patent-protected drugs, but also has a generics division and a device unit.
The AMS device division faces increasing personal injury lawsuits over its vaginal mesh implants and urinary incontinence products. De Silva said Tuesday that the lawsuits had increased from about 8,000 earlier in the year to 13,000. He expected more in the next couple months before tapering off at the end of the year. The company set aside $60 million more in the second quarter to cover potential payouts
The company reported that second-quarter revenue decreased from $785.2 million in 2012 to $766.5 million in the same period of 2013, a decline of 2.4 percent.
The net income increased from $9.465 million in the second quarter of 2012 to $34.999 million in the same period in 2013. The main difference between the two quarters was that in 2012, Endo paid $131 million to settle patent litigation.
The generics business, called Qualitest, had revenue increases.
The branded-drug business, Endo Pharmaceuticals, had a six percent decline in revenue, which the company attributed mostly to supply and delivery fluctuations in a quarter to quarter comparison. Opana ER, an extended release opioid painkiller, had less revenue in the quarter. Endo's Lidoderm patch is also a painkiller and that had a slight increase. However both will face increasing generic competition in the next few months.