Amneal Pharmaceuticals(US:AMRX)2025-11-06 21:16Revenue Growth - Net revenue for the three months ended September 30, 2025, increased by 11.7% to $784.5 million compared to $702.5 million in the prior year period [162]. - The Affordable Medicines segment net revenue grew by 7.8% to $460.7 million, driven by new product launches contributing $24.3 million [171]. - Specialty segment net revenue increased by 8.3% to $125.2 million, primarily due to increases from CREXONT® and UNITHROID® [177]. - AvKARE net revenue for the three months ended September 30, 2025 increased by 24.5% to $198.5 million, driven by growth in the government label channel [183]. - Consolidated net revenue for the nine months ended September 30, 2025 increased by 6.8% to $2.2 billion, primarily due to increased sales volume across all segments [186]. - Affordable Medicines net revenue for the nine months ended September 30, 2025 increased by 5.0% to $1.3 billion, driven by new product launches [196]. - Specialty net revenue for the nine months ended September 30, 2025 increased by 11.3% to $361.6 million, primarily driven by increases in CREXONT® and UNITHROID® [204]. - AvKARE's net revenue for the nine months ended September 30, 2025, increased by 8.4% to $533.99 million compared to $492.56 million in the prior year [210]. Cost and Expenses - Cost of goods sold rose by 17.9% to $510.5 million, attributed to increased sales volume and higher input costs [164]. - Selling, general, and administrative expenses increased by 16.1% to $137.8 million, mainly due to higher employee compensation and launch costs [166]. - Research and development expenses rose by 3.7% to $63.4 million, including a $22.5 million in-licensing payment for Omalizumab [167]. - Specialty SG&A expense for the three months ended September 30, 2025 increased by 21.1% compared to the prior year period, primarily due to launch costs associated with CREXONT® and BREKIYA® [180]. - Specialty R&D expense for the three months ended September 30, 2025 increased by 105.8% compared to the prior year period, primarily due to higher project spending [181]. - Specialty R&D expenses for the nine months ended September 30, 2025 increased by 75.9% compared to the prior year period, primarily due to increased in-licensing and upfront milestone payments [208]. Profitability - Gross profit margin decreased to 34.9% from 38.4% year-over-year, reflecting increased costs and price erosion [165]. - Operating income decreased by 20.8% to $70.3 million, impacted by higher costs and lower gross profit margins [162]. - Specialty gross profit as a percentage of net revenue decreased to 41.1% for the three months ended September 30, 2025, compared to 54.7% in the prior year period due to impairment charges [179]. - Gross profit rose by 29.9% to $104.09 million, with gross profit as a percentage of net revenue increasing to 19.5% from 16.3% [212]. - Operating income surged by 63.9% to $58.09 million, up from $35.44 million in the previous year [210]. Tax and Legal Matters - The effective tax rate for the three months ended September 30, 2025, was 447.2%, compared to 23.8% in the prior year, influenced by jurisdictional income mix and tax reforms [169]. - The One Big Beautiful Bill Act resulted in a reduction of the company's current income tax liabilities by $23.5 million during the reporting period [161]. - The contingent tax receivable agreement liability was approximately $141.4 million as of September 30, 2025, with payments of $3 million made during the nine months ended September 30, 2025 [222]. - The company reached a settlement in principle for opioid litigation, depositing $24.2 million into dedicated accounts as part of the settlement process [221]. Cash Flow and Investments - Cash provided by operating activities was $209.68 million, an increase of 18.4% from $177.02 million in the prior year [226]. - Net cash used in investing activities increased to $66.81 million, up 42.3% from $46.94 million in the prior year, primarily due to higher capital expenditures [228]. - The company expects to invest approximately $120 million in capital expenditures during 2025, including $20 million expected to be reimbursed by Metsera, Inc. [219]. - As of September 30, 2025, the company had $595.2 million available under the Amended New Revolving Credit Facility and $83 million under the Amended Rondo Revolving Credit Facility [217]. - The company made cash tax and other distributions of $38.8 million to AvKARE Sellers during the nine months ended September 30, 2025, compared to $14.4 million in the prior year [224].