Slide 1: A Specialty Pharmaceutical Company: Corporate Presentation August 2016
A Specialty Pharmaceutical Company NASDAQ: ANIP GENERIC AND BRANDED PRESCRIPTION DRUG PRODUCTS Corporate Presentation August 2016
Slide 2: Forward-Looking Statements
Forward - Looking Statements To the extent any statements made in this presentation deal with information that is not historical, these are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statem
Slide 3: Mission and Strategy
3 Mission and Strategy ANI Pharmaceuticals is an integrated specialty pharmaceutical company focused on delivering value to our customers by developing , manufacturing and marketing high quality branded and generic prescription pharmaceuticals. Our dedicated team of R&D, business development, manufa
Slide 4: Senior Management Team
Senior Management Team 4 With ANI Yrs Industry Since Experience Arthur Przybyl President and CEO 2009 25+ Steve Carey VP, Finance and CFO 2016 20+ Robert Schrepfer SVP, Business Development and 2013 15 Specialty Sales Jim Marken SVP, Operations and Product 2007 20+ Development David Sullivan VP, Qua
Slide 5: Financial Highlights – 2Q and YTD 2016
Financial Highlights – 2Q and YTD 2016 Record quarterly results on the strength of seven new product launches: ▪ Net revenues up 61% from prior year and 52% from Q1 2016 ▪ Adjusted non - GAAP EBITDA up 42% from prior year and 36% from Q1 2016 (1) See Appendix A for US GAAP reconciliations 5 ($ in mi
Slide 6: Financial Highlights – 2Q Net Revenues
Financial Highlights – 2Q Net Revenues Generic sales gains driven by April launches of Propranolol ER and Fenofibrate, as well as Vancomycin Brand sales reflect April launch of Inderal ® LA Contract services previously reflected royalty income on authorized generic of Vancocin ® , which is now sold
Slide 7: Revised 2016 Guidance
Revised 2016 Guidance Second half catalysts include: ▪ Continued execution of 2Q product launches ▪ July launch of Nilutamide ▪ Late - September launch of an anti - infective product (1) See Appendix A for note regarding US GAAP reconciliations 7 ($ in millions except EPS figures) Low High Low High
Slide 8: Historical 5-Year Revenue and Adjusted EBITDA Growth
$(10) $- $10 $20 $30 $40 $50 $60 $70 $80 2010 2011 2012 2013 2014 2015 Revenues EBITDA Historical 5 - Year Revenue and Adjusted EBITDA Growth 8 $s in millions
Slide 9: Sales and Marketing Overview
9 Sales and Marketing Overview
Slide 10: Generic Rx Product Portfolio
Generic Rx Product Portfolio 10 (AG) = Authorized Generic EE/MT Tablets Etodolac Capsules Fenofibrate Capsules (AG) Flecainide Tablets Fluvoxamine Maleate Tablets (AG) HC Cream, for rectal use HC Enema (AG) Hydroxyprogesterone Caproate Injection USP Mesalamine Enema (AG) Methazolamide Tablets Metocl
Slide 11: Brand Rx Product Portfolio
Brand Rx Product Portfolio Lithobid ® Tablets Bipolar Disorder Vancocin ® Capsules C. difficile - Associated Diarrhea Cortenema ® U lcerative Colitis Reglan ® Tablets Gastroesophageal Reflux Inderal ® LA Capsules Hypertension $13.1 million of Q2 2016 net sales
Slide 12: Contract Manufacturing and Other
Contract Manufacturing and Other 12 Contract manufacturing ▪ $1.2 million of Q2 2016 net revenues ▪ Four customers – Seven products and seventeen SKUs – Contract manufacturing and contract packaging Contract services and other ▪ $0.2 million of Q2 2016 net revenues ▪ Product development services, la
Slide 13: Business Development / Product Development Overview
13 Business Development / Product Development Overview
Slide 14: Business Development Activity - Generics
Business Development Activity - Generics 14
Slide 15: Business Development Activity - Brands
Business Development Activity - Brands 15
Slide 16: Product Development Pipeline
16 Product Development Pipeline 79 p roducts in development, total combined current market: $3.9 billion (1) ▪ 54 products were acquired and of those, ANI believes 47 can be commercialized based on either a CBE - 30 or PAS ▪ New product introductions: (1) Based on Company estimates, and recent IMS a
Slide 17: Manufacturing Overview
17 Manufacturing Overview
Slide 18: Manufacturing – Main Street Facility
18 Manufacturing – Main Street Facility Location: Baudette , Minnesota ▪ 52,000 square feet of manufacturing , packaging, and warehouse facilities ▪ Rx solutions , suspensions , topicals , tablets , and capsules ▪ DEA - licensed for Schedule II controlled substances ▪ 17,000 square feet of laborator
Slide 19: Manufacturing – IDC Road Facility
19 Manufacturing – IDC Road Facility Location: Baudette, Minnesota ▪ Fully - contained h igh potency facility with capabilities to manufacture h ormone , steroid , and oncolytic products ▪ 47,000 square feet of manufacturing, packaging , and warehouse facilities ▪ 100 nano - gram per eight - hour we
Slide 20: Summary
Summary ANI is an integrated specialty generic pharmaceutical company with: ▪ Profitable base business generating organic growth – 2016 Annual guidance (1) □ Net revenues of $119 million to $134 million □ Adjusted non - GAAP EBITDA (2) of $58 million to $66 million □ Adjusted non - GAAP Net Income P
Slide 21: Appendix A
21 Appendix A
Slide 22: U.S. GAAP Reconciliations
U.S. GAAP Reconciliations 22 2016 2015 2016 2015 Net Income 1,125$ 3,571$ 2,471$ 7,940$ Add back Interest expense, net 2,830 2,749 5,612 5,474 Other expense/income, net 12 - 10 (68) Provision for income taxes 1,227 2,094 2,767 4,635 Depreciation and amortization 5,956 1,415 10,565 2,742 Add back Sto
Slide 23: U.S. GAAP Reconciliations
U.S. GAAP Reconciliations 23 Three Months Ended June 30, 2016 2015 2016 2015 Net Income 1,125$ 3,571$ 2,471$ 7,940$ Add back Tax provision 1,227 2,094 2,767 4,635 Depreciation and amortization expense 5,956 1,415 10,565 2,742 Non-cash interest expense 1,757 1,705 3,482 3,388 Stock-based compensation
Slide 24: U.S. GAAP Reconciliations: Non-GAAP Measures in 2016 Guidance
U.S. GAAP Reconciliations 24 Non - GAAP Financial Measures included in 2016 Guidance The Company's fiscal 2016 guidance for adjusted non - GAAP EBITDA and adjusted non - GAAP net income per diluted share is not reconciled to the most comparable GAAP measure. This is due to the inherent difficulty of