Endo International Updates 2016 Outlook; To Wind Down Astora Business

(RTTNews) - While reporting its fourth-quarter financial results today, Endo International plc (ENDP, ENL.TO) updated its financial outlook for fiscal 2016 and said it will wind down Astora Women's Health business.

During the fourth quarter of 2015, Endo International recorded a $997 million tax benefit predominantly relating to a worthless stock deduction directly attributable to product liability losses. This tax benefit includes $297 million recorded in discontinued operations and $700 million in continuing operations.

The company anticipates that it will receive a federal income tax refund in 2016 from carrying back losses incurred in 2015 and expects additional benefits from reduced federal income taxes in 2016 and future years.

For fiscal 2016, Endo International now forecasts total revenues between $4.32 billion and $4.52 billion, and adjusted earnings per share from continuing operations between $5.85 and $6.20.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $6.02 per share for the year on revenues of $4.67 billion. Analysts' estimates typically exclude special items.

In 2015, the Company divested its AMS Men's Health business and launched a strategic process for AMS Women's Health - now ASTORA Women's Health.

The company noted that while that process resulted in formal bids for Astora, Endo determined in the first quarter 2016 that it will wind down Astora business operations in order to reduce the potential for product liability related to future mesh implants.

Endo will conduct a wind down process and work efficiently to support physicians in transitioning to alternative products. The company will cease business operations for Astora by March 31, 2016.