Page 31 - EndoProxy2012_final

endo | 100 Endo Boulevard | Chadds Ford, Pennsylvania 19317 25
2011 Company Performance Against Objectives. Despite the continued challenges in the economic environment in 2011, the
Company significantly exceeded the target goals for 2011 set by the Compensation Committee for annual incentives. The
numbers in the graph below are in millions, other than per share information.
• Financial Objectives:
Achieved significant diversification of revenue stream, as well as substantially enhanced earnings and cash
flow required to reduce debt;
Achieved net revenues in 2011 of $2.730 billion, representing a 59% increase compared to 2010; and
Achieved adjusted diluted EPS of $4.69, representing a 35% increase versus 2010.
1 See discussion about adjusted diluted EPS and a reconciliation to its most directly comparable
GAAP financial measure in the Executive Summary above.
• Strategic Achievement:
Substantial progress achieved in transforming the business through strategic transactions and organic
growth, and in building a broad base of products and services to improve access, outcomes and economics;
Continued success with our strategy to diversify the Company’s revenue stream in creating a sustainable
growth business, substantially reducing the Company’s reliance on LIDODERM®;
Further strategically diversified the business to now incorporate offerings in mobile and health information
technology services, and product offerings in drugs, devices, drug-devices and diagnostics;
Completed acquisition of American Medical Systems (AMS), the leader in urology medical devices, further-
ing the Company’s strategy as total solutions provider;
Completed Intuitive Medical Software, LLC and meridianEMR, Inc. acquisitions essential to creating critical
mass around a single health information and practice outcomes management platform; and
Demonstrated substantial progress in strategy execution through the creation of commercially driven ac-
quisition-enabled revenue streams and the implementation of cost synergies across business segments,
contributing to debt reduction and shareholder value (stock price appreciation) commitments.
• Portfolio Development:
Following the approval of FORTESTA® Gel, commercially launched the product for men with low testoster-
one;
Obtained U.S. Food and Drug Administration (FDA) approval for new formulation of OPANA® ER designed to
be crush-resistant, addressing the growing demand for improved opioid formulations;
Progressed key development assets though regulatory processes;
Continued advancement of discovery programs in oncology, urology and pain;
Completed planned generics ANDA filings while gaining a significant number of new product approvals; and
Expanded the devices product pipeline with several new urology programs now in development as well as
initial new product concepts generated in collaboration with partners.
$ 1,716
2010
Results
Financial Objective
(in millions, except per share data)
2011
Threshold
2011
Target
2011
Stretch Goal
2011
Results
$ 2,142
$ 2,380
$ 2,618 $ 2,730
Adjusted diluted EPS1
Total revenues
$ 3.48
$ 3.80
$ 4.23
$ 5.08
$ 4.69