Paul Bradbury/OJO Images via Getty Images Investment Overview This is my third note for Seeking Alpha covering Amneal Pharmaceuticals (NASDAQ:AMRX), the "global pharmaceutical company that develops, manufactures, markets, and distributes a diverse portfolio of essential medicines, including retail generics, injectables, biosimilars and specialty branded pharmaceuticals", according to its 2023 annual report / 10K submission. In March 2022, I gave Amneal stock a "Buy" recommendation after its share price ...

Financial Performance - Net revenue for the three months ended March 31, 2024, increased by 18.2% to $659.2 million compared to $557.5 million in the prior year period[188]. - Gross profit increased by 33.6% to $238.1 million, with a gross profit margin of 36.1%, up from 32.0% in the prior year[188][191]. - The net loss for the three months ended March 31, 2024, was $81.7 million, compared to a net loss of $10.1 million in the prior year[188]. Segment Performance - The Generics segment net revenue grew by $47.5 million, primarily due to new product launches, including biosimilars contributing $24.6 million[192]. - The AvKARE segment net revenue increased by $40.6 million, driven by growth in distribution and government label channels[192]. - The Specialty segment net revenue rose by $13.6 million, with $4.0 million from ONGENTYS® sales, which launched in Q1 2024[193]. - Generics net revenue for Q1 2024 increased by 13.8% year-over-year, driven by new generic product launches contributing $24.6 million and $19.2 million, respectively[202]. - Specialty net revenue for Q1 2024 rose by 14.8% compared to the prior year, with a $9.4 million increase in the neurology portfolio, including $4.0 million from ONGENTYS®[209]. - AvKARE net revenue for Q1 2024 increased by 33.3% year-over-year, primarily due to growth in distribution and government label channels[216]. Expenses - Research and development expenses increased by 1.6% to $39.3 million, primarily due to higher in-licensing and milestone payments[195]. - Selling, general, and administrative expenses rose by 10.3% to $112.6 million, mainly due to increased employee compensation and promotional activities[192]. - Generics SG&A expenses increased by 19.9% in Q1 2024, mainly due to higher employee compensation and promotional costs related to biosimilars[204]. - Specialty R&D expenses decreased by 22.2% in Q1 2024, primarily due to reduced project spending and infrastructure costs[212]. Litigation and Charges - A charge of $94.4 million was recorded for Generics civil prescription opioid litigation in Q1 2024, compared to a net credit of $0.4 million in Q1 2023[197]. - The company recorded a charge of $94.4 million related to civil prescription opioid litigation in Q1 2024[206]. - A settlement in principle was reached in April 2024 regarding nationwide civil prescription opioid litigation, with no admission of wrongdoing[222]. Cash Flow and Investments - Net cash used in operating activities was $4.4 million for Q1 2024, a decrease of 103.2% compared to $139.7 million in Q1 2023[231]. - Net cash used in investing activities increased to $19.8 million in Q1 2024 from $11.7 million in Q1 2023, representing a 68.4% increase[232]. - Net cash used in financing activities was $23.2 million for Q1 2024, up 79.5% from $12.9 million in Q1 2023[233]. - The overall net decrease in cash, cash equivalents, and restricted cash was $47.5 million in Q1 2024, compared to an increase of $115.8 million in Q1 2023[230]. - The decrease in operating cash flows was primarily due to lower collections of accounts receivable and the absence of a $21.4 million upfront payment received in Q1 2023[231]. - The increase in cash used in investing activities was primarily due to a sales-based milestone payment related to a licensing agreement[233]. - The increase in cash used in financing activities was driven by net payments of principal on debt and increased payroll tax withholding[233]. Financial Position and Risk - As of March 31, 2024, the company has access to $397.7 million under the Amended New Revolving Credit Facility and $28.0 million under the Amended Rondo Revolving Credit Facility[219]. - There were no material changes to contractual obligations or off-balance sheet arrangements as of March 31, 2024[234][235]. - There has been no material change in the assessment of market risk as disclosed in the 2023 Annual Report[238]. - Critical accounting policies and estimates remain unchanged from the disclosures in the 2023 Annual Report[236]. Capital Expenditures - The company expects to invest approximately $60.0 million to $70.0 million in capital expenditures during 2024 to support and grow existing operations[220].

Q1 2024 Earnings Call May 3, 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; expe ...

Financial Data and Key Metrics Changes - Q1 2024 total net revenue reached $659 million, an 18% increase year-over-year [6][22] - Adjusted EBITDA for Q1 was $152 million, reflecting a 31% growth [6][23] - Adjusted EPS for Q1 was $0.14, up 17% compared to the previous year [24] Business Line Data and Key Metrics Changes - Generics segment net revenue was $391 million, growing 14% driven by a diverse portfolio [22] - Specialty segment net revenues reached $105 million, a 15% increase, supported by the launch of ONGENTYS [22] - AvKARE segment net revenues grew by 33% to $163 million, reflecting strong growth across all customer channels [23] Market Data and Key Metrics Changes - The company fills approximately 175 million prescriptions annually in the U.S., with a focus on complex generics and injectables [7] - The biosimilars market is expected to see significant growth, with an estimated $192 billion in annual branded biologics losing exclusivity from 2024 to 2028 [11] Company Strategy and Development Direction - The strategic vision is to be a global, diversified pharmaceutical company providing access to high-quality, affordable medicines [6] - The company is expanding its portfolio in biosimilars and injectables, with plans to launch over 30 new products in 2024 [10][11] - International expansion is a focus, with expectations to add $5.2 billion in revenues by 2027 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial commitments for 2024 and beyond, citing strong execution and growth momentum [6][24] - The recent approval of naloxone is seen as a significant step in addressing the opioid crisis, with plans to expand access through various channels [8][25] - The company is targeting the higher end of its full-year revenue outlook, expecting total net revenue of $2.55 billion to $2.65 billion [25] Other Important Information - The company has resolved legacy legal matters, including a nationwide opioid settlement, which is expected to alleviate financial overhangs [25] - The company has built capacity to supply up to 10 million units of naloxone starting next year [30] Q&A Session Summary Question: Can you talk about the California contract for naloxone? - The California contract starts now, with potential purchases of up to 3.2 million units per year, ramping up demand over time [28] Question: What is the earnings cadence for this year? - The company is focused on maximizing performance while also investing in R&D for long-term growth [33][34] Question: Can you provide an update on ONGENTYS and PEMRYDI? - Positive feedback has been received for ONGENTYS, and PEMRYDI is expected to drive growth as a ready-to-use oncology therapy [36][38] Question: What are the dynamics driving sales for ALYMSYS? - Strong sales are attributed to a well-established commercial team and a broader product portfolio that enhances negotiating power [49] Question: What is the potential for biosimilars Prolia and XGEVA? - Launches are expected in 2026, with good market penetration anticipated due to established relationships [62]

Financial Performance - Q1 2024 net revenue was $659 million, an 18% increase from $558 million in Q1 2023[3] - Adjusted EBITDA for Q1 2024 was $152 million, reflecting a 31% increase compared to Q1 2023[3] - The company reported a net loss of $92 million in Q1 2024, compared to a net loss of $7 million in Q1 2023, including a $94 million charge related to an opioids settlement[3][4] - Adjusted diluted EPS for Q1 2024 was $0.14, up from $0.12 in Q1 2023[4] - Net revenue for the three months ended March 31, 2024, was $659.2 million, a 18.2% increase from $557.5 million in the same period of 2023[23] - Gross profit for the same period was $238.1 million, compared to $178.2 million, reflecting a gross margin improvement[23] - Net loss attributable to Amneal Pharmaceuticals, Inc. was $91.6 million, significantly higher than the net loss of $6.9 million in the prior year[23] - Adjusted EBITDA for the three months ended March 31, 2024, was $152.4 million, up from $116.2 million in the same period of 2023[31] - Net loss for the three months ended March 31, 2024, was $81,678, compared to a net loss of $10,094 for the same period in 2023[34] - Adjusted net income (Non-GAAP) for the three months ended March 31, 2024, was $44,480, an increase from $36,811 in the prior year[34] - Adjusted diluted earnings per share (Non-GAAP) increased to $0.14 for the three months ended March 31, 2024, compared to $0.12 in the same period of 2023[34] Revenue Segments - Generics revenues increased by 14%, driven by strong performance in complex generics and oncology biosimilars[3] - Specialty revenues rose by 15%, supported by promoted products in Neurology and Endocrinology[3] - AvKARE revenues surged by 33% due to continued expansion and new product launches[3] - Net revenue for the Generics segment was $391,294 for the three months ended March 31, 2024, up from $343,806 in the prior year[41] - Specialty segment net revenue was $105,234 for the three months ended March 31, 2024, compared to $91,678 in the same period of 2023[44] - AvKARE segment net revenue reached $162,663 for the three months ended March 31, 2024, compared to $122,056 in the same period of 2023[48] Guidance and Projections - Full year 2024 guidance is affirmed, with net revenue expected between $2.55 billion and $2.65 billion[9] - Adjusted EBITDA guidance for 2024 is projected between $580 million and $620 million[9] Cash and Assets - Cash and cash equivalents decreased to $46.5 million from $91.5 million at the end of December 2023[26] - Total current assets slightly increased to $1.38 billion from $1.38 billion at the end of December 2023[26] - Total liabilities increased to $3.46 billion from $3.47 billion at the end of December 2023, with long-term debt remaining stable[26] - The company reported a significant increase in accounts payable and accrued expenses, rising to $558.5 million from $534.7 million[26] Research and Development - Research and development expenses were $39.3 million, compared to $38.7 million in the prior year, indicating continued investment in innovation[23] Legal Matters - Charges related to legal matters for the three months ended March 31, 2024, amounted to $94,486, significantly higher than $4,882 in the same period of 2023[34] - The company has reached a settlement in principle for a nationwide opioids settlement, involving $92.5 million in cash and $180 million in naloxone nasal spray over ten years[5]

Company Overview - Amneal Pharmaceuticals (AMRX) shares increased by 12% to close at $6.05, following a notable trading volume that exceeded typical levels [1] - The stock had previously experienced a 7.7% decline over the past four weeks [1] Product Launch - Amneal announced the commercial launch of over-the-counter Naloxone Hydrochloride Nasal Spray, 4mg, in the U.S. after receiving FDA approval [1] - This product serves as a generic equivalent to Emergent BioSolutions' Narcan HCI Nasal Spray, providing an affordable option for treating opioid overdoses [1] Financial Expectations - The company is projected to report quarterly earnings of $0.09 per share, reflecting a year-over-year decrease of 25% [2] - Expected revenues are $621.86 million, which is an 11.5% increase compared to the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for Amneal has remained unchanged over the last 30 days, indicating a lack of upward revisions that typically correlate with stock price increases [2] - Monitoring Amneal's stock is advised to determine if the recent price jump can lead to sustained strength [2] Industry Context - Amneal is part of the Zacks Medical - Drugs industry, where Verrica Pharmaceuticals Inc. (VRCA) also operates [3] - VRCA's stock decreased by 0.9% to $6.79, but it has seen a 28.8% return over the past month [3] - Verrica's consensus EPS estimate has remained unchanged at -$0.54, representing a significant year-over-year decline of 315.4% [3]

Amneal Pharmaceuticals (AMRX) shares rallied 7.3% in the last trading session to close at $6.34. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.2% gain over the past four weeks.The rise in share price is attributable to positive investor expectations for the company’s prospects. Amneal is involved in the development, marketing, and distribution of a diverse portfolio of over 270 pharmaceutical products, in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission file number 001-38485 Amneal Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) Delaware (State or oth ...

Amneal Pharmaceuticals, Inc. AMRX) Q4 2023 Earnings Conference Call March 1, 2024 8:30 AM ET Company Participants Chirag Patel - Co-Founder & Co-CEO Chintu Patel - Co-Founder & Co-CEO Tasos Konidaris - CFO Andy Boyer - Generics Joe Renda - SVP & CCO, Specialty Harsher Singh - SVP, Biosciences Jason Daly - Chief Legal Officer Tony DiMeo - IR Conference Call Participants Nathan Rich - Goldman Sachs David Amsellem - Piper Sandler Balaji Prasad - Barclays Chris Schott - J.P. Morgan Leszek Sulewski - Truist Secu ...

Amneal Pharmaceuticals (AMRX) reported $616.98 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 1.2%. EPS of $0.14 for the same period compares to $0.23 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $630.67 million, representing a surprise of -2.17%. The company delivered an EPS surprise of +100.00%, with the consensus EPS estimate being $0.07.While investors scrutinize revenue and earnings changes year-over-year and how they com ...