Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q3 2024 Earnings Presentation
32 slides from Amneal Pharmaceuticals's earnings presentation, Nov 8, 2024
Slide 1: Q3 2024 Earnings Call
Q3 2024 Earnings Call November 8, 2024
Slide 2: Cautionary Statement on Forward Looking Statements
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 reg
Slide 3: Agenda
Q3 2024 Earnings Call Agenda Strategy & Business Update 1 Chirag and Chintu Patel, Co-founders and Co-CEOs Chirag Patel, Chintu Patel, Tasos Konidaris, Co-CEO and President Co-CEO EVP & CFO Financial Results 2 Tasos Konidaris, EVP & CFO 3 Q&A Andy Boyer, Joe Renda, Jason Daly, SVP EVP - Generics SVP
Slide 4: Q3 2024 key highlights
Q3 2024 key highlights • Q3 net revenue of $702M, up 13%, and adjusted EBITDA of $158M, up 2% Strong (or ~15% excluding bXolair R&D milestone payments) Third Quarter • Continued broad-based revenue growth across all three business segments with Results Generics +9%, Specialty +19% and AvKARE +21% So
Slide 5: Executing on Amneal's four pillars of value creation
Executing on Amneal’s four pillars of value creation LTM Q3 Key Pillar Metric 2019 2023 Growth projection(3) 2024 Increased OSD(1) Gx % of #1 53% 25% 24% <20% of revenue by 2027 diversification total revenue Strong financial Revenues $1.6B $2.4B $2.7B High single-digit growth #2 performance Adjusted
Slide 6: Global diversified pharmaceutical company with a clear strategy for sustainable growth
Global diversified pharmaceutical company with a clear strategy for sustainable growth Net Revenue Business area Strategy for growth Growth projection(1) LTM Q3 2024 Grow #4 U.S. Generics portfolio of ~240 products with new Retail Low-single digit growth launches and shift to complex dosage forms Ex
Slide 7: Amneal and Metsera's strategic collaboration for metabolic and obesity therapies
Amneal and Metsera’s strategic collaboration to change the global landscape for metabolic and obesity therapies Deep expertise in complex pharmaceutical Rapidly advancing next-generation manufacturing obesity and metabolic disease therapies Bringing High-Quality Strong track record of delivering and
Slide 8: CREXONT launched as a new treatment for Parkinson's disease
CREXONT® launched as a new treatment for Parkinson’s disease Novel, long-lasting CD/LD formulation Contains IR granules with carbidopa and levodopa for rapid onset of action, and ER pellets with levodopa for long-lasting efficacy(1) (1) IR = Immediate-release; ER = Extended-release (2) Hauser RA,
Slide 9: CREXONT commercial strategy to reach more patients
CREXONT® commercial strategy to reach more patients Current U.S. PD Market Clear opportunity to drive broader adoption of CREXONT of patients on CD/LD(1) for the full CD/LD patient population RYTARY® 6% • Leveraging strong commercial and medical foundation with relationships built over the last 10 y
Slide 10: Diverse array of growth catalysts across portfolio
Diverse array of growth catalysts across portfolio Retail Injectables Biosimilars Specialty International Launched/ ✓ Launched: Naloxone nasal spray, ✓ Launched: Ropivacaine (IV bag), ✓ Driving uptake of: ✓ Launched: ✓ Launched: India: (1) Approved Fluorometholone acetate, Carvedilol ER, Atropine Su
Slide 11: Our diverse portfolio is driving sustainable growth
Our diverse portfolio is driving sustainable growth Purposeful mix shift towards a more complex portfolio Less weighted towards oral solid generics over time Generics net revenues mix ($’s) Pipeline mix Total company net revenues mix ($’s) (# of products) 7% Oral Solid AvKARE Specialty Generics 24%
Slide 12: Deep pipeline as our wheel of innovation keeps turning
Deep pipeline as our wheel of innovation keeps turning Developing pipeline across increasingly complex dosage forms with 93% non-oral solids ~57 pipeline programs with Oral Solids: 29 Injectables: 28 Ophthalmics: 10 ~$24B TAM $1,318 $2,560 Pending $29,229 $773 ANDA’s $12,468 $709 $158 $281 $259 $1,2
Slide 13: Expanding injectables portfolio to drive substantial growth
Expanding injectables portfolio to drive substantial growth • Notable supply chain disruptions across various players causing (2) Significant Launched first 505(b)(2) RTU injectables chronic drug shortages, including oncology injectables injectables • American Society of Health System Pharmacists (A
Slide 14: Rapidly growing biosimilars and expanding portfolio
Rapidly growing biosimilars and expanding portfolio (2) Strong commercial uptake Expected biosimilar pipeline launches Rapidly growing market • ~$192B branded products losing ALYMSYS® BLA(1) exclusivity 2024-2028(3), Biosimilar (Biologic) Therapeutic areas bevacizumab- filing including key biologics
Slide 15: Delivering continued double-digit growth in AvKARE
Delivering continued double-digit growth in AvKARE 18%+ revenue CAGR expected from 2020 to 2025 AvKARE strategic focus areas ($ millions) $700+ $642 • Operates as a contract administrator (wholesaler and re-packager selling to hospitals and U.S. $532 Government agencies) with 3 sales channels: – Gov
Slide 16: Expanding our Specialty business with new branded products
Expanding our Specialty business with new branded products Expected specialty Expect $500M+ Specialty highlights Key brands continue to grow pipeline launches(1) sales by 2027 ($ millions) Therapeutic focus on $390 $116 ($ millions) $500+ Neurology and Potential Therapeutic New launches Program En
Slide 17: Strong foundation for international expansion
Strong foundation for international expansion Geography Collaboration Strategy and status India N/A – Direct • Focused on hospital critical care, diagnostics, ophthalmics, oncology and specialty markets • Utilizing local commercial team Europe Orion Corporation • Registering select products China Fo
Slide 18: Strong financial performance across all business segments
Strong financial performance across all business segments (2) Net Revenue Growth Adjusted EBITDA Growth ($ millions) +13% - $2,700 – ($ millions) 17% $2,800 $610 – +9% - $2,394 $630 +8% 13% +23% +6% $2,212 +4% +5% $2,094 $390 +9% $558 $1,993 organic $374 $512 $514 $378 $356 $1,626 $532 $406 $294 $34
Slide 19: Purpose-driven company with ESG tenets instilled throughout
Purpose-driven company with ESG tenets instilled throughout In September, for Recovery Awareness Month, we launched the “Taking Control Over It” initiative to raise awareness, Awareness reduce stigma and educate the community about naloxone nasal spray and opioid overdose emergencies. In September,
Slide 20: Q3 2024 financial performance
Q3 2024 financial performance Results(1) Q3 2024 Q3 2023 Change Key Drivers / Commentary $ millions except for EPS Net Revenue $702 $620 +13.3% • Broad-based growth across all business segments Adjusted Gross Margin 44.2% 43.8% +30 bps • Higher due to favorable mix from new product launches Adjusted
Slide 21: Q3 YTD 2024 financial performance
Q3 YTD 2024 financial performance Results(1) Q3 YTD Q3 YTD Change Key Drivers / Commentary $ millions except for EPS 2024 2023 Net Revenue $2,063 $1,777 +16.1% • Broad-based double-digit growth across all business segments Adjusted Gross Margin 42.4% 42.3% +10 bps • In-line with prior year Adjusted
Slide 22: Performance by segment
Performance by segment Results(1) Q3 Q3 YTD Q3 Key Drivers / Commentary $ millions 2024 2023 2024 2023 $427 $391 $1,246 $1,108 Net Revenue • Strong performance of new launches and biosimilars +9.3% +12.4% Generics Adjusted 44.3% 43.0% 42.6% 41.4% • Favorable product mix and supply chain efficiencies
Slide 23: Affirming full year 2024 guidance
Affirming full year 2024 guidance (1) 2024 Guidance 2023 Actual Net Revenue $2.70 – $2.80B $2.4B Adjusted EBITDA $610 – $630M $558M (2) Adjusted Diluted EPS $0.57 – $0.63 $0.64 Operating Cash Flow, (3) $280 – $320M $431M ex-discrete items Operating Cash Flow N/A $346M Capital Expenditures $60 – $70M
Slide 24: Strong cash generation and continued deleveraging
Strong cash generation and continued deleveraging $ millions 2024E 2023 2022 $ millions Sep 30, 2024 Dec. 31, 2023 Net Revenue $2,700 - $2,800 $2,394 $2,212 Gross debt (3) $2,640 $2,767 Adjusted EBITDA $610 - $630 $558 $514 (4) % of Net Revenue ~22.5% 23.3% 23.2% Total cash $74 $92 (5) (2) Net debt
Slide 25: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 26: Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA
Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 26
Slide 27: Reconciliation of net (loss) income to EBITDA and Adjusted EBITDA
Reconciliation of net (loss) income to EBITDA and Adjusted EBITDA Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 27
Slide 28: Reconciliation of net income (loss) to adjusted results
Reconciliation of net income (loss) to adjusted results Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 28
Slide 29: Reconciliation of cost of goods sold
Reconciliation of cost of goods sold Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 29
Slide 30: Reconciliation of segment gross profit to adjusted results
Reconciliation of segment gross profit to adjusted results Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 30
Slide 31: Additional reconciliations
Additional reconciliations Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31
Slide 32: Calculation of last twelve months gross and net leverage
Calculation of last twelve months gross and net leverage Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. (1) Refer to the Company's 8-K filed with the SEC on March 1, 2024 for a complete reconcil
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