Amneal Pharmaceuticals(US:AMRX)2024-05-08 20:46Financial 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].