Q4 2023 Earnings Call March 1, 2024 Cautionary Statement on Forward Looking Statements Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management's intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; ex ...

Company Performance - Amneal Pharmaceuticals reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.23 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $616.98 million for the quarter ended December 2023, missing the Zacks Consensus Estimate by 2.17%, compared to $609.76 million in the same quarter last year [1] - Over the last four quarters, Amneal has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $604.52 million, and for the current fiscal year, it is $0.58 on revenues of $2.58 billion [4] - The estimate revisions trend for Amneal is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [4] Industry Context - The Medical - Drugs industry, to which Amneal belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [5] - Marinus Pharmaceuticals, another company in the same industry, is expected to report a quarterly loss of $0.64 per share, reflecting a year-over-year change of +15.8%, with revenues anticipated to be $7.78 million, up 8.7% from the previous year [5][6]

[Financial Highlights and Business Overview](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Overview) [Fourth Quarter 2023 Performance](index=1&type=section&id=Fourth%20Quarter%202023%20Performance) In Q4 2023, Amneal's net revenue saw a marginal 1% increase to $617 million, propelled by a 38% growth in AvKARE and a 2% rise in Specialty, which was partially offset by a 9% decline in the Generics segment, leading to increased GAAP Net Loss and declines in Adjusted EBITDA and Adjusted Diluted EPS Q4 2023 vs Q4 2022 Financial Metrics | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $617 million | $610 million | +1% | | GAAP Net Loss | $99 million | $4 million | +$95M | | Diluted Loss per Share | $0.40 | $0.03 | +$0.37 | | Adjusted EBITDA | $142 million | $154 million | -8% | | Adjusted Diluted EPS | $0.14 | $0.23 | -39% | - Revenue growth was driven by a **38%** increase in AvKARE and a **2%** increase in Specialty, but was offset by a **9%** decline in Generics revenue due to the timing of orders[3](index=3&type=chunk) - The substantial increase in net loss was primarily attributed to non-cash intangible asset impairment charges and costs associated with the company's term loan refinancing[3](index=3&type=chunk) [Full Year 2023 Performance](index=1&type=section&id=Full%20Year%202023%20Performance) For the full year 2023, Amneal achieved an 8% increase in net revenue, reaching $2.39 billion, with growth recorded across all three business segments, while GAAP Net Loss significantly improved and Adjusted EBITDA grew, despite a slight decrease in Adjusted Diluted EPS due to higher interest expenses Full Year 2023 vs Full Year 2022 Financial Metrics | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $2.39 billion | $2.21 billion | +8% | | GAAP Net Loss | $84 million | $130 million | -$46M | | Diluted Loss per Share | $0.48 | $0.86 | -$0.38 | | Adjusted EBITDA | $558 million | $514 million | +9% | | Adjusted Diluted EPS | $0.64 | $0.68 | -6% | - Full-year revenue growth was broad-based, with AvKARE growing **31%**, Generics **3%**, and Specialty **4%**[3](index=3&type=chunk) - The decrease in Adjusted Diluted EPS was a result of higher interest expense offsetting the growth in Adjusted EBITDA[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The Co-CEOs described 2023 as a very successful year marked by strong execution and growth, expressing confidence for 2024 due to significant momentum and key catalysts such as complex high-value products, biosimilars, and specialty drugs, positioning Amneal for sustainable, profitable growth - The company is entering 2024 with substantial momentum driven by key catalysts, including complex high-value products, biosimilars, and specialty drugs[2](index=2&type=chunk) - Amneal's mission to provide high-quality, affordable, essential medicines is aligned with industry dynamics, positioning the business for sustainable growth[2](index=2&type=chunk) [2024 Financial Guidance](index=3&type=section&id=2024%20Financial%20Guidance) [2024 Financial Guidance](index=3&type=section&id=2024%20Financial%20Guidance) Amneal has issued its financial guidance for 2024, projecting net revenue to be between $2.55 billion and $2.65 billion, Adjusted EBITDA in the range of $580 million to $620 million, Adjusted Diluted EPS between $0.53 and $0.63, and operating cash flow between $260 million and $300 million 2024 Financial Guidance vs. 2023 Actuals | Metric | Full Year 2024 Guidance | Full Year 2023 Actuals | | :--- | :--- | :--- | | Net revenue | $2.55 billion - $2.65 billion | $2.39 billion | | Adjusted EBITDA | $580 million - $620 million | $558 million | | Adjusted diluted EPS | $0.53 - $0.63 | $0.64 | | Operating cash flow | $260 million - $300 million | $346 million | | Capital expenditures | $60 million - $70 million | $43 million | - The 2024 guidance is based on management's current expectations regarding prescription trends, pricing levels, the timing of future product launches, and restructuring activities[4](index=4&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the full year ended December 31, 2023, Amneal reported increased net revenue and gross profit, achieving an operating income compared to a prior-year loss, but still recorded a net loss primarily due to significant interest expense and a loss on refinancing Full Year Consolidated Statement of Operations Highlights (in thousands) | Line Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net revenue | $2,393,607 | $2,212,304 | | Gross profit | $820,565 | $784,708 | | Operating income (loss) | $204,374 | $(94,928) | | Interest expense, net | $(210,629) | $(158,377) | | Net loss | $(48,722) | $(254,789) | | Net loss attributable to Amneal | $(83,993) | $(129,986) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, Amneal's total assets decreased to $3.47 billion, mainly due to lower intangible assets, while total liabilities also reduced to $3.41 billion driven by decreased long-term debt, and cash and cash equivalents significantly increased to $91.5 million Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $91,542 | $25,976 | | Total current assets | $1,377,863 | $1,411,818 | | Intangible assets, net | $890,423 | $1,096,093 | | Total assets | $3,472,569 | $3,799,341 | | Long-term debt, net | $2,386,004 | $2,591,981 | | Total liabilities | $3,411,265 | $3,590,413 | | Total stockholders' equity | $20,011 | $183,979 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2023, Amneal generated $345.6 million in net cash from operating activities, a significant improvement from the prior year, with cash used in investing and financing activities, resulting in a net increase in cash and equivalents to $99.1 million by year-end Full Year Cash Flow Summary (in thousands) | Cash Flow Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $345,577 | $65,100 | | Net cash used in investing activities | $(69,189) | $(174,309) | | Net cash used in financing activities | $(212,573) | $(106,620) | | Net increase (decrease) in cash | $63,880 | $(221,512) | | Cash, cash equivalents, and restricted cash - end of period | $99,107 | $35,227 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Reconciliation of Net Loss to EBITDA and Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) For the full year 2023, Amneal reconciled its GAAP Net Loss of $48.7 million to a non-GAAP Adjusted EBITDA of $558.2 million, primarily by adding back non-cash and non-recurring items such as depreciation, amortization, interest expense, asset impairment charges, and refinancing losses FY 2023 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Item | Amount | | :--- | :--- | | Net loss | $(48,722) | | Interest expense, net | $210,629 | | Provision for income taxes | $8,452 | | Depreciation and amortization | $229,400 | | **EBITDA (Non-GAAP)** | **$399,759** | | Key Adjustments (e.g., Stock comp, Legal, Impairments) | $158,455 | | **Adjusted EBITDA (Non-GAAP)** | **$558,214** | [Reconciliation of Net Loss to Adjusted Net Income and Adjusted Diluted EPS](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) For the full year 2023, the company's GAAP Net Loss of $48.7 million was adjusted to a non-GAAP Adjusted Net Income of $197.6 million, resulting in an Adjusted Diluted EPS of $0.64, driven by significant positive adjustments for amortization, asset impairment charges, and loss on refinancing, partially offset by a non-GAAP provision for income taxes FY 2023 Reconciliation of Net Loss to Adjusted Net Income (in thousands) | Item | Amount | | :--- | :--- | | Net loss | $(48,722) | | Amortization | $157,219 | | Asset impairment charges | $70,015 | | Loss on refinancing | $40,805 | | Provision for income taxes (Non-GAAP) | $(60,014) | | Net income attributable to non-controlling interests | $(29,873) | | Other Adjustments | $68,125 | | **Adjusted net income (Non-GAAP)** | **$197,555** | - The Adjusted Diluted EPS of **$0.64** was calculated using a non-GAAP weighted average of **310,234 thousand** diluted shares outstanding[23](index=23&type=chunk) [Segment Performance Analysis](index=12&type=section&id=Segment%20Performance%20Analysis) [Generics Segment](index=12&type=section&id=Generics%20Segment) The Generics segment's full-year 2023 net revenue increased modestly to $1.47 billion, with a slight decrease in non-GAAP gross margin but an improvement in non-GAAP operating income, though Q4 2023 revenue declined year-over-year Generics Segment Full Year Performance | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Revenue | $1,471.4M | $1,432.1M | | Non-GAAP Gross Margin | 41.7% | 42.3% | | Non-GAAP Operating Income | $379.1M | $343.3M | - In Q4 2023, the Generics segment experienced a year-over-year revenue decline, reporting **$363.0 million** compared to **$399.2 million** in Q4 2022[30](index=30&type=chunk) [Specialty Segment](index=15&type=section&id=Specialty%20Segment) The Specialty segment reported increased full-year 2023 net revenue of $390.5 million, maintaining a high non-GAAP gross margin and improving non-GAAP operating income, despite a slight decrease in Q4 2023 operating income due to higher costs relative to revenue Specialty Segment Full Year Performance | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Revenue | $390.5M | $374.1M | | Non-GAAP Gross Margin | 80.4% | 81.6% | | Non-GAAP Operating Income | $196.5M | $189.3M | - For Q4 2023, non-GAAP operating income was **$53.2 million**, down from **$59.6 million** in Q4 2022, primarily due to higher cost of goods sold and operating expenses relative to revenue[37](index=37&type=chunk) [AvKARE Segment](index=17&type=section&id=AvKARE%20Segment) The AvKARE segment demonstrated robust growth in 2023, with full-year net revenue surging to $531.7 million and gross margin expanding, leading to a more than doubling of non-GAAP operating income, a trend that continued into Q4 2023 AvKARE Segment Full Year Performance | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net Revenue | $531.7M | $406.1M | | Gross Margin | 16.3% | 14.0% | | Non-GAAP Operating Income | $46.9M | $22.6M | - The growth momentum continued in Q4 2023, with revenue increasing to **$149.5 million** from **$108.0 million** in Q4 2022[44](index=44&type=chunk)

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) (“Amneal” or the “Company”) today announced its results for the fourth quarter and full year ended December 31, 2023. “Amneal had a very successful year in 2023 as we delivered strong execution and growth across our diversified pharmaceutical business. We are starting 2024 with substantial momentum and key catalysts, including complex high-value products, biosimilars and specialty, to further expand our reach. Against the macro ...

Wall Street analysts expect Amneal Pharmaceuticals (AMRX) to post quarterly earnings of $0.07 per share in its upcoming report, which indicates a year-over-year decline of 69.6%. Revenues are expected to be $630.67 million, up 3.4% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company an ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (NASDAQ: AMRX) announced today that Chirag Patel, Co-Chief Executive Officer, will participate in the following investor conference. Barclays 26th Annual Global Healthcare Conference March 13, 2024 Miami, FL Fireside chat – 8:30 AM ET One-on-one meetings to follow A live webcast of the presentation will be accessible through the Investor Relations section of the Company's website at https://investors.amneal.com. A replay of the webcast will ...

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (NASDAQ: AMRX) announced today that the Company will release its fourth quarter and full year 2023 financial results on Friday, March 1, 2024, prior to market open. The Company will host a conference call and live webcast with the investment community at 8:30 a.m. Eastern Time. The financial results and live webcast will be accessible through the Investor Relations section of the Company's website at https://investors.amneal.com. Individuals ...

MONTREAL, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX:GUD) ("Knight"), a pan-American (ex-USA) specialty pharmaceutical company, announced today that it has entered into an exclusive license agreement with Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) ("Amneal"), granting Knight the exclusive rights to seek regulatory approval and commercialize IPX203 in Canada and Latin America. IPX203 is a novel, oral formulation of carbidopa/levodopa (CD/LD) extended-release capsules designed for the tre ...

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (NASDAQ: AMRX) (“Amneal” or the “Company”) today announced the approval and launch of fluorometholone ophthalmic suspension. The product received 180-day competitive generic therapy (CGT) exclusivity from the U.S. Food and Drug Administration, a status that applies to first-marketed generics of key medicines. FML® suspension is indicated for the treatment of corticosteroid-responsive inflammation of the palpebral and bulbar conjunctiva, cor ...