Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX

Amneal Pharmaceuticals — Q3 2018 Earnings Presentation

24 slides from Amneal Pharmaceuticals's earnings presentation, Nov 7, 2018

  1. Slide 1: Q3 2018 Financial Results and Business Update Earnings Call

    “We make healthy possible” Q3 2018 Financial Earnings Call Results and Business Update November 7, 2018

  2. Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures

    Safe Harbor Statement & Non-GAAP Financial Measures Safe Harbor Statement Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements incl

  3. Slide 3: Q3 2018 Results and Business Update

    Q3 2018 Results and Business Update Robert Stewart President and CEO 3

  4. Slide 4: Continued to Deliver Solid Financial and Operational Performance

    Continued to Deliver Solid Financial and Operational Performance  Double-digit adjusted EBITDA and earnings growth  Generated strong cash flow of $62 million from operating activities  The U.S. industry leader in ANDA approvals and launches  Completed all actions related to merger; will deliver

  5. Slide 5: Q3 2018 Financial Highlights

    Q3 2018 Financial Highlights Solid Financial Quarter with Double-Digit Adjusted Earnings Growth GAAP Adjusted Q3 2018 Compared to ($ in millions, Q3 Q3 Q21 Q31 Q2 Q3 except EPS) 2018 2018 2018 2017 2018 2017 Net Revenue $476 $476 $462 $475 3% 0% Net Income $17 $82 $70 $79 17% 4% EBITDA --- $163 $139

  6. Slide 6: Generics Business Highlights

    Generics Business Highlights ADJUSTED NET REVENUE1 Leading the U.S. Generics Market $ millions in Product Approvals and Launches in 2018 $406 $358 $383 $391 Approvals Year-to-Date2 Launches Year-to-Date2 FINAL APPROVAL TENTATIVE APPROVAL 3Q17 1Q18 2Q18 3Q18 56 10 39 2% Sequential Growth driven by Ta

  7. Slide 7: Significant Opportunities to Drive Future Growth

    Significant Opportunities to Drive Future Growth 238 total projects of which ~50% are potential high value opportunities1 Transmucosal 2% - $1.1B Nasal Spray Ophthalmic/Otic Nasal Spray 1% - $0.4B Inhalation 3% - $0.3B 4% - $2.2B 7% - $13.1B Transdermal 5% - $1.7B IR Tablets Oral Liquid IR Tablets D

  8. Slide 8: Specialty Pharma Business Highlights

    Specialty Pharma Business Highlights ADJUSTED NET REVENUE1 Focused on Growing Specialty Business $ millions $80 $85 $69 $69 3Q17 1Q18 2Q18 3Q18 6% Sequential Revenue Growth Rytary ‒ Rytary® TRx growth of 6% ‒ Expanding access; Humana Med D formulary coverage effective Feb. 1, 2019 ‒ Unithroid® TRx g

  9. Slide 9: Investing in Specialty Business to Drive Future Growth

    Investing in Specialty Business to Drive Future Growth IPX203 - Potential treatment for the symptoms of advanced Parkinson’s disease.  Patent issued; expires November 2034  Additional intellectual property protection expected  First patient dosed in Phase 3 study  Top line results expected in fi

  10. Slide 10: Rapid and Seamless Integration Activities

    Rapid and Seamless Integration Activities  Ahead of schedule on key deliverables  Closure of Hayward facilities within one year of merger  All actions required to deliver synergies are completed On Track to Achieve More Than $200 Million in cost Synergies Earlier Than Planned 10

  11. Slide 11: Q3 2018 Financial Results

    Q3 2018 Financial Results Bryan Reasons SVP, Chief Financial Officer 11

  12. Slide 12: Generic Division Results

    Generic Division Results GAAP Adjusted Key Drivers: Adjusted Results Q3 2018 Compared to Sequentially: Revenue Up 2% Q3 Q3 Q21 Q31 Q2 Q3 • Higher sales of Yuvafem® and Epinephrine Auto- ($ in millions) 2018 2018 2018 2017 2018 2017 injector (seasonality) • Lower sales of Aspirin Dipyridamole and Dic

  13. Slide 13: Specialty Pharma Division Results

    Specialty Pharma Division Results GAAP Adjusted Key Drivers: Adjusted Results Q3 2018 Compared to Sequentially: Revenue Up 6% Q3 Q3 Q21 Q31 Q2 Q3 • Rytary®, Zomig® and anthelmintic franchise ($ in millions) 2018 2018 2018 2017 2018 2017 Year-Over-Year: Revenue Up 24% Net Revenue $85 $85 $80 $69 6% 2

  14. Slide 14: Generated Strong Operating Cash Flow in 3Q18

    Generated Strong Operating Cash Flow in 3Q18  $62 million of cash flow from operating activities  Major uses of cash ‒ $27 million for cap-ex ‒ $12 million purchase of remaining non-controlling interest in UK subsidiary ‒ $10 million earn-out payments related to prior-year product acquisition Expe

  15. Slide 15: Closing Remarks

    Closing Remarks Robert Stewart President and CEO 15

  16. Slide 16: 2018 Financial Guidance

    2018 Financial Guidance1 Prior Updated Reasons for Adjusted Gross Margins 50% to 55% 51% to 53% tightening EBITDA/EPS ranges: Adjusted R&D Expense as a % of Total Revenues 10% to 15% 11% to 12% • Third-party manufacturer Adjusted SG&A Expense as a % of Total Revenues 13% to 16% 15% to 16% (Pfizer) c

  17. Slide 17: As We Look to 2019 and Beyond: Near-Term Priorities

    As We Look to 2019 and Beyond Continue Building Amneal From Our Position of Strength NEAR-TERM PRIORITIES OUR TARGET  Capitalize on Organic Growth  Continue to leverage industry leading Maintain double-digit approvals and on-time launch performance earnings growth  Drive for Operational Excellenc

  18. Slide 18: As We Look to 2019 and Beyond: Long-Term Initiatives

    As We Look to 2019 and Beyond Capital Deployment to Support Double-Digit Earnings Growth LONG-TERM INITIATIVES OUR PORTFOLIO FOCUS  Continue to Drive Organic Growth  Ongoing investment in Generic and Specialty R&D Generics  Pursue Creative Business Development  Tuck-in acquisitions as well as la

  19. Slide 19: Questions & Answers

    Questions & Answers 19

  20. Slide 20: Appendix & Non-GAAP Reconciliations

    Appendix & Non-GAAP Reconciliations 20

  21. Slide 21: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation The following table reconciles GAAP net income (loss) to Combined adjusted net income: (Unaudited; In thousands, except per share amounts) Three months ended Sept. 30, 2018 Three months ended June 30, 2018 Three months ended Sept. 30, 2017 Add: Add: Add: Impax/ Impax/

  22. Slide 22: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation The following table reconciles GAAP net loss to Combined EBITDA and Combined adjusted EBITDA: (Unaudited, In thousands) Three months ended Sept. 30, 2018 Three months ended June 30, 2018 Three months ended Sept. 30, 2017 Add: Add: Add: Impax/ Impax/ Impax/ Actual Gemi

  23. Slide 23: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation The following table reconciles the Generics Business GAAP results to combined results and to adjusted combined operating profit: (Unaudited, In thousands) Three months ended Sept 30, 2018 Three months ended June 30, 2018 Three months ended Sept 30, 2017 Add: Add: Add:

  24. Slide 24: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation The following table reconciles the Specialty Pharma Business GAAP results to combined results and to adjusted combined operating profit: (Unaudited, In thousands) Three months ended Sept. 30, 2018 Three months ended June. 30, 2018 Three months ended Sept. 30, 2017 Add

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