Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q3 2023 Earnings Presentation
32 slides from Amneal Pharmaceuticals's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 7, 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
Q3 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: Q3 2023 key highlights
Q3 2023 key highlights Accelerated • Q3 net revenue of $620M grew 14% and adj. EBITDA of $154M grew 22%, growth reflects broad-based revenue strength, durable gross margins & expense leverage • Increased full year revenue guidance to $2.37B to $2.42B, reflecting high-single Raised 2023 digit growth
Slide 5: Amneal today is a fundamentally stronger company
Amneal today is a fundamentally stronger company (1) FY 2019 FY 2023 1 Larger revenue base $1.6B ~$2.4B 2 Accelerating revenue growth (2%) +~8% More diversified 3 Oral solid generics % of total revenue 53% 26% Deeper and more complex pipeline (2) FDA approval pending ANDAs (% non-oral solids) 97 (44
Slide 6: Global diversified pharmaceuticals company with a clear strategy for sustainable growth
Global diversified pharmaceuticals company with a clear strategy for sustainable growth Estimated 2023 Business area Strategy for growth Growth projection(1) Net Revenue Retail Grow #4 U.S. Generics portfolio of ~230 products with new Low-single digit growth Generics launches and shift to complex do
Slide 7: Significant growth catalysts across portfolio
Significant growth catalysts across portfolio Retail Generics Injectables Biosimilars Specialty International Recently Year-to-date launches Year-to-date Launches Launched IPX203 pending NDA Launched completed ✓ Posaconazole, Pirfenidone, Lubiprostone, ✓ Azacitidine, Prochlorperazine ✓ ALYMSYS®, a •
Slide 8: Diversified portfolio with less concentration in oral solid Gx
Diversified portfolio with less concentration in oral solid Gx Purposeful mix shift to more complex Generics portfolio Diversified revenues with OSD Gx portion cut in half since 2019 Generics net revenues mix ($’s) Pipeline mix Total company net revenues mix ($’s) (# of products) 10% Oral Solid AvKA
Slide 9: Deep pipeline as our wheel of innovation keeps turning
GENERICS Deep pipeline as our wheel of innovation keeps turning Developing pipeline across increasingly complex dosage forms with 90% non-oral solids ~78 pipeline programs with Injectables: 31 Ophthalmics: 11 Oral Solids: 32 ~$36B TAM $24,652 $1,876 $2,983 Pending $818 ANDA’s $2,494 $1,473 $219 $114
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 25+ launches from now to 2025 in 24%+ CAGR expected from 2021 to 2025 complex areas, such as drug/device combos, $ millions $300+ peptides
Slide 11: Rapidly growing biosimilars business with key oncology products
BIOSIMILARS Rapidly growing biosimilars business with key oncology products ~$28B (1) Estimated market size for overall biosimilar market Estimated U.S. market size (2) ~$2B for our first three U.S. biosimilars Approved Our long-term strategy ALYMSYS® RELEUKO® FYLNETRA® to expand in biosimilars: bio
Slide 12: Delivering continued double-digit growth in AvKARE
AvKARE Delivering continued double-digit growth in AvKARE 15%+ revenue CAGR expected from 2020 to 2025 ($ millions) $600+ AvKARE strategic focus areas ~$500 • Operates as a contract administrator (wholesaler $406 and re-packager selling to hospitals and U.S. $349 Government agencies) with 3 sales ch
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 Geography Direct / Partner Strategy and status India Direct • Utilizing commercial team to launch Expanding local products locally presence • Focusing on the hospital, ophthalmics, and specialty products markets Europ
Slide 16: Focused on affordability and access to essential medicines
Focused on affordability and access to essential medicines In October, we announced the expansion of our biosimilar Innovative pipeline with the addition of 2 formulations of denosumab, medicines in collaboration with our partner, mAbxience In September, received U.S. FDA approval for Calcium Amneal
Slide 17: Amneal's four pillars of value creation
Amneal’s four pillars of value creation #1 Increased #2 Strong financial #3 Cash generation #4 Deleveraging Diversification performance OSD Gx % of revenue Revenues Adj. EBITDA Operating Cash Flow Net leverage 2023 26%(1) ~$2.4B(1) ~$545M(1) ~$265M(1,2) 4.6x(3) 2019 53% $1.6B $339M $2M 7.4x (1) 2023
Slide 18: Proven track record of driving top and bottom-line growth
Proven track record of driving top and bottom-line growth (2) Net Revenue Growth Adjusted EBITDA Growth High-single ($ millions) digit growth ($ millions) $2,370 – $2,420 +22.5% +5.7% $2,212 High-single $540 - $550 +5.1% $2,094 +4.5% (1) $1,993 $374 digit growth $512 $514 organic $378 ~$500 $356 $1,
Slide 19: Strong financial performance continues in Q3 2023
Strong financial performance continues in Q3 2023 Results (1) Q3 2023 Q3 2022 Change Key Drivers / Commentary $ millions except for EPS • Driven by durable performance of our diversified pharmaceuticals portfolio Net Revenue $620 $546 +13.7% with all three segments growing Adjusted Gross Margin 43.8
Slide 20: Continued growth across all segments in Q3 2023
Continued growth across all 3 segments in Q3 2023 Results (1) Third Quarter Key Drivers / Commentary $ millions 2023 2022 $391 $350 • Driven by biosimilars ($25M) and new launches, key complex Net Revenue products and higher volumes +11.6% Generics Adjusted 43.0% 43.0% • Stable reflecting product mi
Slide 21: Raising full year 2023 guidance – reflects acceleration in growth
Raising full year 2023 guidance – reflects acceleration in growth 2023 Guidance (1) Q3 Update Q2 Update Original 2022 Actual Net Revenue $2.37 - $2.42B $2.3 - $2.4B $2.25 - $2.35B $2.2B Adjusted EBITDA $540 - $550M $525 - $540M $500 - $530M $514M (2) Adjusted Diluted EPS $0.51 - $0.58 $0.45 - $0.55
Slide 22: Higher cash generation allows debt paydown going forward
Higher cash generation allows debt paydown going forward Operating Cash Flow $ millions 2021 2022 LTM Sep’23 ($ millions) Net Revenue $2,094 $2,212 $2,386 $293 $242 Adjusted EBITDA $512 $514 $570 $211 % of Net Revenue 24.5% 23.2% 23.8% (1) Operating Cash Flow, ex-discrete items $242 $211 $293 % of A
Slide 23: 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 in 2025 Last Twelve Months Ended September 30, 2023 December 31, 2022 Capital allocation priorities $ millions (1) • Key priority remains reducing gross debt and net Gross debt $2,701 $2,740 levera
Slide 24: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 25: 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. 25
Slide 26: 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. 26
Slide 27: 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. 27
Slide 28: 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. 28
Slide 29: 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. 29
Slide 30: 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. 30
Slide 31: Operating cash flow reconciliation
Operating cash flow reconciliation 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 2, 2023 for a complete reconcil
Amneal Pharmaceuticals — Q3 2023 Earnings Presentation on 6ix