ENDO INTERNATIONAL PLC (NASDAQ:ENDP) Files An 8-K Regulation FD Disclosure

Item7.01.

2017 First Quarter Information

Endo International plc (Endo) currently estimates total first
quarter 2017 revenues to be between $1,015million and
$1,035million, compared to $964million in first quarter 2016, an
increase of 5.3% to 7.4%. Additionally, Endo currently expects
its first quarter 2017 adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) from continuing operations
to be between $440million and $460million. Endo plans to report
first quarter 2017 earnings results on May9, 2017.

Theunaudited financial data for the fiscal quarter ended March31,
2017 aboveare preliminary, based upon Endos good faith estimates
and subject to completion of Endos financialclosing procedures.
Endo has provided ranges for its expectations described above
because thefiscal quarter closing procedures are not yet
complete. While Endo expects that its final financialresults for
the quarterly period ended March31, 2017, following the
completion of its financialclosing procedures, will be within the
ranges described above, Endos actual results may differmaterially
from these estimates as a result of the completion of its
financial closing proceduresas well as final adjustments and
other developments that may arise between now and the timethat
its financial results for this quarterly period are finalized.

Impairments

to an existing agreement with a wholly owned subsidiary of
Novartis AG (Novartis), Endos subsidiary, Paladin Labs Inc.
(Paladin), licensed the Canadian rights to commercialize
serelaxin, an investigational drug for the treatment of acute
heart failure (AHF). On March22, 2017, Novartis announced that a
Phase III study of serelaxin in patients with AHF failed to meet
its primary endpoints. As a result, Endo has concluded that its
serelaxin in-process research and development intangible asset is
fully impaired resulting in a $45million impairment charge. In
addition and as a result of the serelaxin impairment, Endo is in
the process of assessing the recoverability of its Paladin
goodwill balance. Based on the work completed to date, Endo has
determined that the estimated fair value of Paladins goodwill is
below its book value resulting in a goodwill impairment charge.
The current estimate of the goodwill impairment charge is
approximately $90million. We expect that these impairments will
be recorded in the first quarter of 2017.

Endo is in the process of its first quarter 2017 financial
reporting close, which, among other things, includes the
identification and assessment of potential asset impairment
triggering events. In addition to the items mentioned above, Endo
has identified certain market conditions impacting the
recoverability of a developed technology intangible asset in its
U.S. Generic Pharmaceuticals segment. As a result, Endo has
determined that the intangible asset is impaired. Based on the
work completed to date, the current estimate of the non-cash
impairment charge related to this intangible asset is
approximately $50million, which we expect to record in the first
quarter of 2017. As Endo continues through its first-quarter 2017
financial reporting close, it may identify other triggering
events which could lead to incremental material impairment
charges being recorded in the first quarter of 2017.

Somar

As previously disclosed on its February28, 2017 earnings
conference call, Endo is assessing strategic alternatives for its
Grupo Farmacutico Somar, Sociedad Annima Promotora de Inversin de
Capital Variable (Somar) business. Should this strategic process
continue to advance successfully, the assets and liabilities of
the Somar business may eventually be classified as held-for-sale
in Endos consolidated balance sheets. Although Endo cannot
predict the ultimate timing or outcome of the strategic process,
held-for-sale accounting will trigger an additional impairment
review that could lead to material impairment charges. Based on
progress to date and preliminary indications of interest from
potential buyers, it is possible that certain Somar assets could
become impaired, including intangible assets and goodwill. As of
December31, 2016, Somars net book value, including currency
translation adjustments, was approximately $230million.

Vaginal Mesh Update

In addition to vaginal mesh claims covered by master settlement
agreements (MSAs), Endo is currently aware of approximately
10,500 vaginal mesh claims that have been filed, asserted or that
Endo believes are likely to

be asserted. These claims have not been accrued for because Endo
lacks sufficient information to determine whether any potential
loss is probable. In addition, there may be other claims asserted
in the future. It is currently not possible to estimate the
number or validity of any such future claims. Endo expects that
valid claims under the MSAs will continue to be settled. However,
Endo intends to vigorously contest pending and future claims that
are invalid, for which settlement is unable to be reached or that
are in excess of the maximum claim amounts under the applicable
MSAs.

Endo will continue to monitor the situation, and, if appropriate,
Endo will make further adjustments to its product liability
accrual based on new information. Endo intends to continue
exploring all options as appropriate in its best interests, and
depending on developments, there is a possibility that Endo will
suffer adverse decisions or verdicts of substantial amounts, or
that Endo will enter into additional monetary settlements. Any
unfavorable outcomes as a result of such litigation or
settlements with respect to any asserted or unasserted claims
could have a material adverse effect on Endos business, financial
condition, results of operations and cash flows.

From March1, 2017, the date Endo filed its Annual Report on Form
10-K for the year
ended December31, 2016 through the date of this Current Report on
Form 8-K, there have been no increases in the vaginal mesh
related product liability accrual.

Non-GAAP
Financial Measures

Endo utilizes
certain financial measures that are not prescribed by or prepared
in accordance with accounting principles generally accepted in
the U.S. (GAAP). Endo utilizes these financial measures, commonly
referred to as non-GAAP, because (i)they are used by Endo, along
with financial measures in accordance with GAAP, to evaluate
Endos operating performance; (ii)Endo believes that they will be
used by certain investors to measure Endos operating results and
(iii)Endos leverage and interest coverage ratios as defined by
Endos credit facility are calculated based on non-GAAP financial
measures. Endo believes that presenting these non-GAAP measures
provide useful information about Endos performance across
reporting periods on a consistent basis by excluding items, which
may be favorable or unfavorable.

Specifically, this
Current Report on Form 8-K makes reference to adjusted EBITDA.
Adjusted EBITDA represents net (loss) income, prepared in
accordance with GAAP, before interest expense, net; income tax;
depreciation and amortization and further adjusted by excluding
inventory step-up amortization recorded as part of our
acquisitions, other (income) expense, net; share-based
compensation; certain upfront and milestone payments to partners;
acquisition-related and integration items, including transaction
costs, earn-out payments or adjustments, changes in the fair
value of contingent consideration and bridge financing costs;
cost reduction and integration-related initiatives such as
separation benefits, retention payments, excess inventory
reserves, other exit costs and certain costs associated with
integrating an acquired companys operations; excess costs that
will be eliminated to integration plans; asset impairment
charges; litigation-related and other contingent matters; gains
or losses from early termination of debt; discontinued
operations, net of tax and certain other items.

Reconciliation of
the first quarter adjusted EBITDA to the closest corresponding
GAAP measure is not available because Endos fiscal quarter
closing procedures are not yet complete and Endo has not yet
finalized its calculations of several factors necessary to
provide the reconciliation without unreasonable efforts, to
forecast and quantify certain amounts that are necessary for such
reconciliation, including adjustments that could be made for
asset impairments, contingent consideration adjustments, legal
settlements, loss on extinguishment of debt, adjustments to
inventory and other charges reflected in the reconciliation of
the comparable GAAP financial measure, the amounts of which could
be significant.

The initial
identification and review of the non-GAAP adjustments to
continuing operations is performed by a team of finance
professionals that include the Chief Accounting Officer and
segment finance leaders, and are identified in accordance with
Endos Adjusted Income Statement Policy, which is reviewed and
approved by Endos Audit Committee. Company tax professionals,
including the Senior Vice President of Tax, review and determine
the tax effect of adjusted pre-tax income at applicable tax rates
and other tax adjustments. Proposed adjustments, along with any
items considered but excluded, are presented to the Chief
Executive Officer and the