Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q2 2018 Earnings Presentation
23 slides from Amneal Pharmaceuticals's earnings presentation, Aug 9, 2018
Slide 1: Q2 2018 Financial Results and Business Update Earnings Call
“We make healthy possible” Q2 2018 Financial Earnings Call Results and Business Update August 9, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as a
Slide 3: Q2 2018 Results and Business Update
Q2 2018 Results and Business Update Robert Stewart President and CEO 3
Slide 4: Q2 2018 Highlights
Q2 2018 Highlights GAAP1 Combined Adjusted2 ⚫ Completed business combination with Impax Laboratories Q2 2018 Compared to ‒ Integration running ahead of schedule ($ in millions, Q2 Q2 Q1 Q2 Q1 Q2 except EPS) 2018 2018 2018 2017 2018 2017 ⚫ Enhanced Specialty portfolio by acquiring Gemini Laboratories
Slide 5: Integration Advancing Ahead of Schedule
Integration Advancing Ahead of Schedule • Rapid and seamless execution of integration strategies • On track to achieve more than $200 million in cost synergies at an accelerated pace • Closure of Hayward, CA facility tracking ahead of schedule • Rebranding Impax Specialty as Amneal Specialty 5
Slide 6: Generics Business Highlights
Generics Business Highlights ADJUSTED NET REVENUE1 KEY PRODUCT LAUNCHES $ millions YEAR TO DATE ANDAs APPROVED $411 $385 $358 YEAR TO DATE2 FINAL APPROVAL TENTATIVE APPROVAL Colesevelam Tablets (gWelchol®) 2Q17 1Q18 2Q18 33 9 Cyclophosphamide Injection Erythromycin IR Tablets 7% Sequential Growth dr
Slide 7: Specialty Pharma Business Highlights
Specialty Pharma Business Highlights ADJUSTED NET REVENUE1 $ millions $80 $63 $69 2Q17 1Q18 2Q18 16% Sequential Revenue Growth Litigation Update ‒ Rytary® TRx growth of 10% ‒ Settled Rytary® litigation with Actavis (first-to-file); granted 27% Year-Over-Year Revenue Growth license to begin selling a
Slide 8: Generic Pipeline - Diversified and High-Value
Generic Pipeline - Diversified and High-Value Approximately 258 total projects of which ~50% are high value opportunities1 Ophthalmic Transmucosal Transdermal Transdermal 3% - $2.2B 1% - $1.1B Nasal Spray Other 4% - $1.6B 4% - $2.4B 2% $0.3B 1% - $0.4B Nasal Spray Inhalation 1% - $0.1B 6% - $13.1B T
Slide 9: Q2 2018 Financial Results
Q2 2018 Financial Results Bryan Reasons SVP, Chief Financial Officer 9
Slide 10: Generic Division Results
Generic Division Results GAAP1 Combined Adjusted2 Key Driver: Generic Combined Adjusted Results Q2 2018 Sequentially: Revenue Up 7% Compared to • New product launches contributed $41MM Q2 Q2 Q1 Q2 Q1 • Higher sales of Yuvafem, Aspirin Dipyridamole, ($ in millions, except EPS) Q2 2017 Diclofenac 1% u
Slide 11: Specialty Pharma Division Results
Specialty Pharma Division Results GAAP1 Combined Adjusted2 Key Drivers: Specialty Combined Adjusted Results Q2 2018 Sequentially: Revenue Up 16% Compared to • Rytary® up 15%; volume up 8% Q2 Q2 Q1 Q2 Q1 Q2 • Anthelmintic franchise up 10% ($ in millions, except EPS) 2018 2018 2018 2017 2018 2017 Year
Slide 12: Q2 2018 Non-GAAP Adjustments
Q2 2018 Non-GAAP Adjustments $ Millions $ Millions Amortization 22,156 Combined net loss (273,096) Acquisition, transaction and integration 211,888 Total adjustments 343,249 Adjusted Net Income $70,153 Restructuring and severance charges 44,688 Diluted shares outstanding 298,417 Loss on extinguishme
Slide 13: Closing Remarks
Closing Remarks Robert Stewart President and CEO 13
Slide 14: 2018 Financial Guidance
2018 Financial Guidance Guidance Range Full Year 2018 Adjusted Gross Margins 50% to 55% Adjusted R&D Expense as a % of Total Revenues1 10% to 15% Adjusted SG&A Expense as a % of Total Revenues 13% to 16% Adjusted EBITDA2 $580 to $620 million (previously $600 to $650 million) Adjusted EPS $0.90 to $1
Slide 15: Adjusted EBITDA Bridge to Full Year 2018 Guidance
Adjusted EBITDA Bridge to Full Year 2018 Guidance Focused on Delivering Double-Digit Year-Over-Year Adjusted EBITDA Growth1 ~15% to 23% Growth Over 20171 $580 to $560 $620 $470 2018 Full Year Brand Backlog All Other Net Competition 2018 Year To Go Full Year Annualized 1st Half 1st Half Launches Grow
Slide 16: Focus on Key Priorities
Focus on Key Priorities OPERATIONAL PRIORITES ⚫ Focus on synergy capture and cost control ⚫ Maintain high level of quality and compliance ⚫ Continue to provide superior service to our customers COMMERCIAL PRIORITIES ⚫ Maximize value of enhanced commercial portfolio to grow revenue and profits ⚫ Focu
Slide 17: Long-Term Capital Deployment
Long-Term Capital Deployment OUR PORTFOLIO FOCUS Specialty Generics Biosimilars Products ⚫ Continue investment in organic growth through focused R&D ⚫ Pursue creative business development to substantially strengthen our key portfolios ⚫ Continue to evaluate additional adjacencies as market dynamics
Slide 18: Questions & Answers
Questions & Answers 18
Slide 19: Appendix & Non-GAAP Reconciliations
Appendix & Non-GAAP Reconciliations 19
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation The following table reconciles GAAP net loss to Combined adjusted net income: (Unaudited; In thousands, except per share amounts) Three months ended June 30, 2018 Three months ended June 30, 2017 Add: Add: Impax/ Impax/ GAAP Gemini Combined GAAP Gemini Combined Net lo
Slide 21: 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 June 30, 2018 Three months ended June 30, 2017 Add: Add: Impax/ Impax/ GAAP Gemini Combined GAAP Gemini Combined Net loss $(250,0
Slide 22: 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 June 30, 2018 Three months ended March 31, 2018 Three months ended June 30, 2017 Add: Add: Add
Slide 23: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation The following table reconciles the Specialty Pharama Business GAAP results to combined results and to adjusted combined operating profit: (Unaudited, In thousands) Three months ended June 30, 2018 Three months ended March 31, 2018 Three months ended June 30, 2017 Add:
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