The subsidiary has become embroiled in a spate of product liability lawsuits filed over its pelvic mesh products. Johnson & Johnson‘s (NYSE:JNJ) Ethicon subsidiary, C.R. Bard (NYSE:BCR), Boston Scientific (NYSE:BSX), Cook Medical and Coloplast (CPH:COLO B) are also facing thousands of lawsuits over their mesh offerings to treat female urinary incontinence.
Endo said the pre-tax charge will amount to roughly $495 million, "primarily related to goodwill attributable to the company’s acquisition of American Medical Systems," according to a regulatory filing.
The Malvern, Pa.-based company also said it plans to book a $316 million pre-tax charge to boost its product liability reserve into the $520 million range "for all known, pending and estimated future claims primarily related to vaginal mesh cases."
"The change in the accrual for product liability claims is primarily associated with the company’s ongoing evaluation of American Medical Systems’ vaginal mesh litigation, including the inherent uncertainty of this litigation and potential settlement costs," according to the filing.
The writedown and reserve boost will hit Endo’s earnings per share, which "are now expected to be materially below previously announced guidance of 95¢ to $1.10," Endo said.