Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q2 2023 Earnings Presentation
28 slides from Amneal Pharmaceuticals's earnings presentation, Aug 4, 2023
Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call August 4, 2023 g
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 and Today's Participants
Q2 2023 Earnings Call Agenda Today’s participants 1 Business Update Chirag and Chintu Patel, Co-CEOs 2 Financial Results Tasos Konidaris, EVP & CFO Chirag Patel, Chintu Patel, Tasos Konidaris, Co-CEO and President Co-CEO EVP & CFO 3 Closing Remarks Chirag Patel, Co-CEO 4 Q&A Andy Boyer, Harsher Sing
Slide 4: Q2 2023 key highlights: Continued business momentum driving higher profitability
Q2 2023 key highlights: Continued business momentum driving higher profitability Strong Q2 • Q2 net revenue of $599M grew +7% and adjusted EBITDA of $146M grew +9%, performance reflects strong revenues, durable gross margins and operating expense leverage • Increased full year net revenue guidance t
Slide 5: Global diversified pharmaceuticals company with a clear strategy for sustainable growth
Global diversified pharmaceuticals company with a clear strategy for sustainable growth 2022 Business area Strategy for growth Growth projection(1) Net Revenue Retail Grow #4 U.S. Generics portfolio of ~230 products with new Low-single digit growth Generics launches and shift to complex dosage forms
Slide 6: Significant growth catalysts across portfolio
Significant growth catalysts across portfolio Retail Generics Injectables Biosimilars Specialty International Recently Year-to-date launches Year-to-date Launches Launched IPX203 pending NDA Launched completed ✓ Posaconazole, Pirfenidone, ✓ Azacitidine, Prochlorperazine ✓ ALYMSYS®, a • Expect Q3 Typ
Slide 7: Continued track record of driving growth and profitability
Continued track record of driving growth and profitability (1) Net Revenue Growth Adjusted EBITDA Growth ($ millions) Mid-to-high single ($ millions) digit growth $2,300 - $2,400 +22% +6% $2,212 $525 - $540 $2,094 High-single +5% $514 +4% $1,993 $374 digit growth $512 organic $378 ~$500 $356 $1,626
Slide 8: Diversified portfolio with less concentration in oral solid generics
Diversified portfolio with less concentration in oral solid generics Purposeful mix shift to more complex Generics portfolio Diversified revenues with OSD Gx portion cut in half since 2019 Generics net revenues mix ($’s) Pipeline mix Total company net revenues mix ($’s) (# of products) 10% Oral Soli
Slide 9: Amneal's wheel of innovation keeps turning
GENERICS Amneal’s wheel of innovation keeps turning Developing pipeline across increasingly complex dosage forms with 90% non-oral solids ~67 pipeline programs with Oral Solids: 36 Injectables: 29 Ophthalmics/Otics: 11 ~$32B TAM $24,095 $3,067 Pending $1,942 $1,378 ANDA’s $5,751 $197 $972 ~92 pendin
Slide 10: Scaling our injectables business to drive substantial growth
INJECTABLES Scaling our injectables business to drive substantial growth Expanding portfolio and infrastructure… …to drive injectables revenue growth • Targeting 30 launches from now to 2025 in 24%+ CAGR from 2021 to 2025 complex areas, such as drug/device combos, $ millions $300+ peptides, long-act
Slide 11: Entering U.S. biosimilar market with key oncology products
BIOSIMILARS Entering U.S. biosimilar market with key oncology products Estimated U.S. market size (1) for our first three U.S. approved ~$2B oncology biosimilars Approved Our long-term strategy ALYMSYS® RELEUKO® FYLNETRA® biosimilars to expand in biosimilars: Biosimilar • bevacizumab-maly • filgrast
Slide 12: Delivering double-digit growth in AvKARE business
AvKARE Delivering double-digit growth in AvKARE business Expect 19%+ CAGR from 2020 to 2023 ($ millions) ~$500 AvKARE strategic focus areas $406 $349 • Operates as a contract administrator (wholesaler and re-packager selling to hospitals and U.S. $294 Government agencies) with 3 business units: – Go
Slide 13: Transforming our Specialty business with expanding portfolio
SPECIALTY Transforming our Specialty business with expanding portfolio Strong growth Expected specialty Expect $500M+ Specialty highlights of key brands pipeline launches (1) sales by 2027 Therapeutic focus on Neurology ($ millions) $97 ($ millions) $500+ Potential Therapeutic and Endocrinology Pr
Slide 14: Branded pipeline expected to expand portfolio and create value
SPECIALTY Branded pipeline expected to expand portfolio and create value IPX203 DHE Autoinjector K-127 K-114 K-130 Program Carbidopa-levodopa Dihydroergotamine mesylate Pyridostigmine ER Liothyronine ER Pyridostigmine ER Indication Migraine and Cluster Headache Hypothyroidism Symptomatic neurogenic
Slide 15: Entering key global markets with impactful pharmaceuticals
INTERNATIONAL EXPANSION Entering key global markets with impactful pharmaceuticals Entering key global markets to drive incremental revenue & cash flow from U.S. FDA approved portfolio Geography Direct / Partner Strategy and status India Direct • Utilizing commercial team to launch Expanding local p
Slide 16: Focused on affordability and access to essential medicines
Focused on affordability and access to essential medicines In June, we received 505(b)(2) NDA approval for PEMRYDI Innovative RTU®, a Ready-to-Use Oncology Injectable, which is the medicines first ready-to-use presentation of a key injectable that eliminates formulation steps common with other produ
Slide 17: Strong Q2 2023 results
Strong Q2 2023 results Results (1) Q2 2023 Q2 2022 Change Key Drivers / Commentary $ millions except for EPS Net Revenue $599 $559 +7.1% • Driven by durable performance of our diversified pharmaceuticals portfolio Adjusted Gross Margin 43.3% 44.1% (80 bps) • Reflects business mix; Accelerated +390 b
Slide 18: Q2 2023 performance by segment
Q2 2023 performance by segment Results (1) Second Quarter Key Drivers / Commentary $ millions 2023 2022 • Driven by key products (Adrenaclick, Zafemy), new product $374 $365 Net Revenue launches including biosimilars, and higher volumes, partially +2.4% offset by pricing Generics Adjusted 43.3% 42.6
Slide 19: Balance sheet update: Key priority remains reducing gross debt
Balance sheet update: Key priority remains reducing gross debt and expect to be below <4x net leverage by the end of 2025 Last Twelve Months Ended June 30, 2023 December 31, 2022 Capital allocation priorities $ millions Gross debt (1) $2,754 $2,740 • Key priority remains reducing gross debt and net
Slide 20: Raising full year 2023 guidance
Raising full year 2023 guidance $ millions except for Updated 2023 Prior 2023 2022 Actual Adjusted Diluted EPS Guidance Guidance (1) (1) Net Revenue $2,300 - $2,400 $2,250 - $2,350 $2,212 Adjusted EBITDA $525 - $540 $500 - $530 $514 (2) Adjusted Diluted EPS $0.45 - $0.55 $0.40 - $0.50 $0.68 Weighted
Slide 21: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 22: 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. 22
Slide 23: 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. 23
Slide 24: 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. 24
Slide 25: 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. 25
Slide 26: 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. 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: 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 3, 2023 for a complete reconcil
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