15 Companies Losing the Most Money

Print Email

10. Endo International plc (Nasdaq: ENDP)
> Fiscal 2014 net loss: $721.3 million
> Fiscal 2014 revenue: $2.9 billion
> Industry: Pharmaceutical
> 1 yr. stock price change: +38.6%

Specialty pharmaceutical company Endo International, lost a hefty $721.3 million in 2014. The Dublin-based company manufactures both branded and generic medications, including pain relief drugs such as Lidoderm, Voltaren Gel, and Percocet. As of February 20, 2015, Endo had 5,062 employees. Like many similar companies, Endo has a number of new drugs awaiting Food and Drug Administration (FDA) approval. In March 2014, the FDA approved Aveed, an injectable treatment for low testosterone. This March, Endo began marketing Natesto, a nasal gel for testosterone replacement, which the FDA approved in May 2014. Endo’s legal bill in 2014 was $1.31 billion, an increase of $831.2 million from 2013, when the company lost $685.3 million. In 2014, Endo negotiated the sale of its men’s health and prostate treatment businesses to Boston Scientific. Endo did not pay a dividend to its shareholders in 2014.

9. Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX)
> Fiscal 2014 net loss: $738.6 million
> Fiscal 2014 revenue: $580 million
> Industry: Pharmaceutical
> 1 yr. stock price change: +92.1%

Vertex Pharmaceuticals is a Boston-based biotechnology company, which focuses on specialty markets such as cystic fibrosis treatments for patients under the age of six. The company lost $738.6 million in 2014. In addition, it is conducting early-stage research in oncology and neurology. Vertex was founded in 1989 and as of December 31, 2014, had about 1,830 employees. Vertex revenues dropped sharply from $1.2 billion in 2013 to $580 million in 2014. In the fourth quarter of last year the company withdrew Incivek from the U.S. market after patients reported serious skin reactions. Revenues from Incivek fell from $1.2 billion 2013 to $580 million in 2014. With the withdrawal of incivek, Vertex is concentrating on its CF medications for patients over age six, and a separate medication for CF patients 12 and older. Vertex does not pay a dividend to its shareholders.

ALSO READ: The States With the Most McDonald’s

8. Genworth Financial, Inc. (NYSE: GNW)
> Fiscal 2014 net loss: $1.2 billion
> Fiscal 2014 revenue: $9.6 billion
> Industry: Finance
> 1 yr. stock price change: -49.3%

Genworth Financial is one of the nation’s leading providers of insurance, retirement plans, and homeowners mortgage insurance. Last year, the company increased its benefits and policy reserves by $1.7 billion and took a goodwill impairment charge of almost $850 million that contributed to turning its $560 million 2013 profit into the $1.2 billion 2014 loss. The Richmond, Virginia-based company’s premium and other revenue increased to $9.6 billion in 2014 from $9.4 billion in 2013. With reserve and impairment increases, though, expenses rose $2.5 billion, more than wiping out the $162 million revenue boost. The tax effect of the increases in reserve and impairment charges reduced Genworth’s loss by $228 million. In addition to offering products in the U.S., Genworth sells mortgage insurance and related products in Canada, Australia, and some European countries. Genworth does not pay a cash dividend to its shareholders.

7. Freeport-McMoRan Inc. (NYSE: FCX)
> Fiscal 2014 net loss: $1.2 billion
> Fiscal 2014 revenue: $21.4 billion
> Industry: Energy
> 1 yr. stock price change: -31.6%

Mining company Freeport-McMoRan is a large producer of copper, gold, cobalt and silver among other metals. As of December 31, 2014, proven and probable recoverable mineral reserves totaled 103.5 billion pounds of copper, 28.5 million ounces of gold, and 282.9 million ounces of silver. The company’s estimated proved oil and natural gas reserves totaled 390 million barrels of oil equivalents. Formerly known as Freeport-McMoRan Copper & Gold Inc, the company changed its name to Freeport-McMoRan Inc. in July 2014. At December 31, 2014, it employed about 35,000 workers. The company reported a profit of $2.7 billion in 2013. In 2014, however, the company posted a $1.3 billion loss due to a writedown of $3.7 billion of the value of oil and gas properties, and a goodwill impairment charge of $1.7 billion. Both came as a result of the drop in crude oil and natural gas prices. The company also struggled with declining copper prices, which dropped because of lower demand from China. Freeport-McMoRan paid an annual dividend of $1.25 per share in 2014, unchanged from 2013. In 2013, however, the company declared an additional $1 per share dividend.

ALSO READ: The 20 Largest Privately Held Companies in America

6. Actavis plc (NYSE:ACT)
> Fiscal 2014 net loss: $1.6 billion
> Fiscal 2014 revenue: $13.1 billion
> Industry: Pharmaceutical
> 1 yr. stock price change: -42.7%

Actavis reported revenues of $13.1 billion in 2014, an increase of $4.4 billion from 2013. Its net loss, however, more than doubled to $1.6 billion from $750.4 million. The Irish pharmaceutical company produces generic and branded medications as well as over-the-counter products, women’s health treatments and oncology drugs Actavis wrote off $189.9 million last year as an impairment charge on assets held for sale. In November 2014, Actavis incurred transaction costs of $17.8 million when it reached an agreement to acquire Allergan. The deal closed in March 2015. Actavis plans to change its name to Allergan. Actavis sells its products in Ireland — where it was founded in 1983 — as well as internationally. It has manufacturing facilities in Europe, the United States, and Asia. At the end of 2014, Actavis had about 21,600 employees. Actavis does not pay cash dividends to its shareholders.