Par Health Reports Third Quarter 2025 Financial Results and Provides Business Update

ST. LOUIS, Nov. 10, 2025 /PRNewswire/ -- Par Health, Inc. ("Par Health" or the "Company"), a generic pharmaceuticals and sterile injectables company committed to delivering essential medicines, today reported its financial results for the third quarter of 2025. As was announced in a separate press release today, Par Health completed its spin-off from Mallinckrodt plc ("Mallinckrodt")¹ and comprises the combined generics, active pharmaceutical ingredients (API) and sterile injectable portfolios of Mallinckrodt and Endo, Inc. ("Endo")² following their merger in July 2025.

"While we experienced competitive pressures in opioid medications and certain sterile injectables that impacted our third quarter results, we delivered double-digit growth in lidocaine patches, finished dose attention deficit hyperactivity disorder and addiction treatment products, and bulk acetaminophen, underscoring the importance of our diversified business," said Stephen Welch, President and CEO. "As Par Health begins a new chapter as an independent company, we are focused on optimizing our operations, particularly in sterile injectables, aggressively pursuing continued post-merger synergies and unlocking the commercial potential of our portfolio. With extensive manufacturing and supply chain capabilities, a commitment to quality and a deeply experienced team, we believe Par Health will deliver long-term growth and profitability by addressing the demand for essential medicines."

Third Quarter 2025 Financial Results

GAAP Financial Results (Unaudited)

Par Health's financial results included in this release on a GAAP and pro forma basis were derived based on the performance of Par Health as a component of Parent company³, which included:

• Mallinckrodt's historical Specialty Generics segment for all periods;
• Endo's historical Generic Pharmaceuticals segment beginning July 31, 2025; and
• Endo's historical Sterile Injectables segment beginning July 31, 2025.

Accordingly, Par Health's consolidated operating results on a GAAP basis for the third quarter ended September 26, 2025[4] reflect the inclusion of three months of Mallinckrodt's Specialty Generics segment, two months of Endo's Generic Pharmaceuticals segment and two months of Endo's Sterile Injectables segment. References herein to financial results in the third quarter of 2024 on a GAAP basis reflect only Mallinckrodt's Specialty Generics segment.

Par Health's totalnet revenues in the third quarter of 2025 were $337.1 million, a 53.6% increase compared to $219.5 million in the third quarter of 2024:

• Generic Pharmaceuticals net revenue was $289.9 million, a 32.1% increase compared to $219.5 million in the third quarter of 2024.
• Sterile Injectables net revenue was $47.2 million, with no comparable net revenue in the third quarter of 2024.

The Company's adjusted EBITDA in the third quarter of 2025 was $80.1 million, a 10.0% increase compared to $72.8 million in the third quarter of 2024.

Par Health had $230 million of unrestricted cash and cash equivalents on the spin date. Using the spin date cash balance and the Company's pro forma combined adjusted trailing 12-month EBITDA as of the end of the third quarter of 2025, the Company's net leverage ratio was approximately 2.7x. Currently, the Company's top priority for capital allocation is reducing leverage.

Pro Forma Combined Results (Unaudited)

The following supplemental, unaudited pro forma combined information presents Par Health's results of operations as if Mallinckrodt's historical Specialty Generics segment, Endo's historical Generic Pharmaceuticals segment and Endo's historical Sterile Injectables segment had been combined during the third quarter of 2025 and third quarter of 2024.

Par Health's pro forma combined totalnet revenues in the third quarter of 2025 were $388.5 million, a 5.3% decrease compared to $410.4 million in the third quarter of 2024:

• Generic Pharmaceuticals pro forma combined net revenue was $328.0 million in the third quarter, essentially flat compared to $330.3 million in the third quarter of 2024. The Company delivered double-digit year-over-year growth in key products including lidocaine patches, finished dose attention deficit hyperactivity disorder (ADHD) and addiction treatment products and bulk acetaminophen (APAP), offset by competitive pressures in other portfolio areas, particularly finished dosage opioid medications.
• Sterile Injectables pro forma combined net revenue was $60.5 million, compared to $80.1 million in the third quarter of 2024, a decrease of 24.5%. The Company's launch of ADRENALIN^® Ready-to-Use premixed IV bags in 2mg, 5mg and 10mg concentrations partially offset the impact of competitive pressures on price and volume of VASOSTRICT^® and ADRENALIN vials.

The Company's pro forma combined adjusted EBITDA in the third quarter of 2025 was $76.5 million, a 38.8% decrease compared to $125.0 million in the third quarter of 2024. This decrease primarily reflects the revenue decline and changes to product mix, particularly in the sterile injectables business, as well as in the opioid medication business. The decline was also the result of significantly higher manufacturing costs; increased operating expenses due to investments in research and development to support the Company's sterile injectables pipeline; and increased legal spend, all compared to the third quarter of 2024.

Outlook

The Company plans to provide guidance for full-year 2026 in early 2026.

Please see "Non-GAAP Financial Measures" included in this release for a discussion of non-GAAP measures and reconciliation of GAAP and non-GAAP financial measures for the third quarter of 2025.

Non-GAAP Financial Measures

This press release contains financial measures, including adjusted EBITDA, pro forma combined net revenues, pro forma combined adjusted EBITDA and net leverage, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations.

The Company has provided these adjusted financial measures because they are used by management, along with financial measures in accordance with GAAP, to evaluate the Company's operating performance and liquidity. In addition, the Company believes that they will be used by investors to measure Par Health's operating results. Management believes that presenting these adjusted measures provides useful information about the Company's performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance.

Legacy Mallinckrodt Adjusted EBITDA

Adjusted EBITDA represents net income or loss prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") and adjusted for certain items that management believes are not reflective of the operational performance of the business. Adjustments to GAAP amounts include, as applicable to each measure, interest expense, net; income tax expense; depreciation and amortization; combination, integration, and other related expenses; restructuring charges, net; liabilities management and separation costs; gains/losses on debt extinguishment; gains/losses on divestitures; income from discontinued operations; fresh-start inventory-related expenses; business combination inventory-related expense; share-based compensation; and other items identified by the Company.

Legacy Endo Adjusted EBITDA

Adjusted EBITDA represents net income (loss) before interest expense, net income tax expense (benefit), depreciation, amortization, including amortization of intangible assets and of inventory step-up adjustments, certain employee-related charges, including earn-outs, separation, retention, or relocation costs, changes in the fair value of contingent consideration, transaction costs of executed deals and integration or disintegration-related costs, certain amounts related to strategic review initiatives, certain cost reduction initiatives such as separation benefits, continuity payments and other exit costs, asset impairment charges, certain costs incurred in connection with debt or equity-financing activities, such as non-capitalizable transaction costs incurred in connection with a successful financing transaction and gains or losses associated with early repayments, extinguishment or modification of Endo's debt instruments, litigation-related and other contingent matters, certain legal costs, gains or losses from the sales of businesses and other assets, gains or losses associated with discontinued operations, net of tax, foreign currency gains or losses on intercompany financing arrangements, reorganization items, net; stock-based compensation, and certain other items

Pro Forma Combined Net Revenues

Pro forma combined net revenues represent net revenues as if Mallinckrodt's historical Specialty Generics segment, Endo's historical Generic Pharmaceuticals segment and Endo's historical Sterile Injectables segment had been combined during the third quarter of 2025 and third quarter of 2024.

Pro Forma Combined Adjusted EBITDA

Pro forma combined adjusted EBITDA represents Adjusted EBITDA as if Mallinckrodt's historical Specialty Generics segment, Endo's historical Generic Pharmaceuticals segment and Endo's historical Sterile Injectables segment had been combined during the third quarter of 2025 and third quarter of 2024, applying the legacy Adjusted EBITDA definitions of the respective companies set forth above for periods prior to the acquisition date.

Net Leverage

Net leverage represents the Company's total debt less non-restricted cash on hand, divided by trailing twelve-month adjusted pro forma combined EBITDA. This metric is presented on a "standard" basis and is not calculated in accordance with debt covenant compliance requirements. It is intended to provide investors with a simplified view of the Company's financial leverage using readily available liquidity.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to the statements by Mr. Welch and any statements relating to financial guidance, expectations, plans or projections, supply disruptions, pipeline development or realignment, product launches and submissions, strategic priorities, improving performance, revenue growth, competition, demand and any other statements that refer to expected, estimated, predicted or anticipated future results or that do not relate solely to historical facts. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intends," "guidance," "future," "potential" or similar expressions are examples of forward-looking statements. Because these statements reflect Par Health's current views, expectations and beliefs concerning future events, they involve risks and uncertainties, some of which Par Health may not currently be able to predict. Although Par Health believes that these forward-looking statements and other information are based upon reasonable assumptions and expectations, readers should not place undue reliance on these or any other forward-looking statements and information. Actual results may differ materially and adversely from current expectations based on a number of factors, including, among other things, the following: with respect to the combination of Endo and Mallinckrodt and the separation of Par Health, changes in competitive, market or regulatory conditions; changes in legislation or regulations; global political changes; our use of artificial intelligence and data science; the ability to obtain and maintain adequate protection for intellectual property rights; the impacts of competition; the timing and uncertainty of the results of both the research and development and regulatory processes; health care and cost containment reforms, including government pricing, tax and reimbursement policies; litigation; the performance including the approval, introduction and consumer and physician acceptance of current and new products; the performance of third parties upon whom we rely for goods and services; issues associated with our supply chain; our ability to develop and expand our product pipeline and to launch new products and to continue to develop the market for sterile injectable or generic products; and the timely and successful implementation of business development opportunities and/or any other strategic priorities. Par Health assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws.

About Par Health

Par Health is a pharmaceutical company focused on Elevating the Essentials™. We develop, manufacture, and deliver high-quality generic medicines, active pharmaceutical ingredients (APIs) and sterile injectable products across a broad range of therapeutic areas, dosage forms, and delivery technologies. With a vertically integrated, U.S.-advantaged manufacturing network and over 4,000 global employees, we are committed to reliability, integrity and operational excellence because we believe great healthcare is built on getting the essentials right. To learn more, please visit parhealth.com and connect with us on LinkedIn.

Contacts

Investors
Stacie Phillips
[email protected]

Media
Michael Freitag / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

SOURCE Par Health