Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q2 2022 Earnings Presentation
24 slides from Amneal Pharmaceuticals's earnings presentation, Aug 5, 2022
Slide 1: Q2 2022 Earnings Call
Q2 2022 Earnings Call August 5, 2022 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 2022 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 Co-CEO EVP & CFO 3 Closing Remarks Chirag Patel, Co-CEO 4 Q&A Andy Boyer, Harsher Singh, Jason Daly,
Slide 4: Key takeaways for Q2 2022
Key takeaways for Q2 2022 • Q2 net revenue of $559M and adjusted EBITDA of Solid Q2’22 $135M(1) reflects acceleration from Q1, as expected performance • Q2 performance driven by revenue growth across all 3 segments: Generics, Specialty and AvKARE • Continue to expect mid-single digit revenue growth
Slide 5: Our strategy for growth as a global essential medicines company
Our strategy for growth as a global essential medicines company Amneal develops, manufactures, commercializes and distributes a growing and diverse portfolio of essential medicines, including complex generics, injectables, biosimilars and specialty branded pharmaceuticals. Through this diversified a
Slide 6: Upcoming key catalysts and growth drivers
Upcoming key catalysts and growth drivers • Every year: Expect 20-30 new product launches planned with focus on increasingly complex areas Retail • Select 2022/2023 planned launches include in Ophthalmics/Otics: gPred-Forte®, and gCiproDex®; in Inhalation/Nasal: 5 ANDAs pending; and in Oral Solids:
Slide 7: Focused on affordable, essential medicines for patients in need
Focused on affordable, essential medicines for patients in need From March to May, our first three oncology biosimilars were Innovation approved in the U.S. as we believe biosimilars represent the next wave and Access of affordable medicines in the U.S. and globally In July, we launched a newly enha
Slide 8: Diversified portfolio with less concentration in oral solid Generics
GENERICS | SPECIALTY | AVKARE Diversified portfolio with less concentration in oral solid Generics Purposeful mix shift to more complex Generics portfolio Diversified and growing revenue base Generics net revenues mix ($’s) Pipeline mix Revenue contribution by business (# of products) 2021 revenues
Slide 9: Scaling our injectables business to drive substantial growth
INJECTABLES Scaling our injectables business to drive substantial growth Expanding with new products and global capabilities will drive substantial Injectables revenue growth • Targeting 30-40 launches from 2022 to 2025 in a variety of $ millions complex areas, such as drug/device combinations, pept
Slide 10: Our wheel of innovation in Generics keeps turning
GENERICS Our wheel of innovation in Generics keeps turning Developing pipeline across increasingly complex dosage forms with 90% non-oral solids ~110 pipeline products with Oral Solids: 46 $18,643 Injections: 31$2,607 Ophthal/Otic: 9 ~$46B TAM $12,156 $2,370 $2,690 Pending $1,298 $847 ANDA’s $583 $1
Slide 11: Entering U.S. biosimilar market with key oncology products
BIOSIMILARS Entering U.S. biosimilar market with key oncology products ~$4B TOTAL (1) Estimated U.S. market size for our first three U.S. approved ~$2B BIOSIMILARS oncology biosimilars Approved Our biosimilars strategy: Alymsys® Releuko® FylnetraTM biosimilars • Expanding portfolio through in-licens
Slide 12: Expanding branded portfolio expected to drive growth
SPECIALTY Expanding branded portfolio expected to drive growth YTD growth of existing products + New branded launches in the pipeline (1) + Business development 2023 2024 2025 2026 $182M • Pursue strategic, accretive • Rytary revenue +4% DHE transactions focused on with TRx +7% Autoinjector Rytary c
Slide 13: Branded pipeline expected to expand portfolio and create value
SPECIALTY Branded pipeline expected to expand portfolio and create value Product DHE Autoinjector IPX-203 K-127 K-114 K-128 Dihydroergotamine mesylate Carbidopa-levodopa Pyridostigmine QD, oral ER LT3 sustained release tablets THP hydrochloride capsules ER Indication Migraine and Cluster Headache Hy
Slide 14: Entering select international markets with impactful products
INTERNATIONAL Entering select international markets with impactful products (1) MARKET SIZE Expect to be commercial in $197B 2025 China by early 2023 with 5 products filed currently and more planned over time $168B with our partner Fosun TODAY Building a presence in India $36B 2025 Focusing on the h
Slide 15: Q2 2022 Results
Q2 2022 Results Results (1) Q2 2022 Q2 2021 Change Key Drivers / Commentary $ millions except for EPS Net Revenue $559 $535 +4.5% • Driven by revenue growth across all three segments • Unfavorable mix in Generics due to a tough prior year comparison from the Adjusted Gross Margin 44.1% 47.4% (330 bp
Slide 16: Q2 2022 Performance by Segment
Q2 2022 Performance by Segment Results (1) Second Quarter Key Drivers / Commentary $ millions 2022 2021 $365 $360 • Driven by broad-based performance, including injectables; Growth Net Revenue +1.2% impacted by a tough prior year comparison Generics Adjusted 42.6% 47.1% • Unfavorable product mix due
Slide 17: Revised full year 2022 guidance
Revised full year 2022 guidance $ millions except for Updated 2022 Prior 2022 2021 Actual Adjusted Diluted EPS Guidance Guidance (1) (1) Net Revenue $2,150 - $2,250 $2,150 - $2,250 $2,094 (2) Adjusted EBITDA $500 - $520 $540 - $560 $512 (2) (3) Adjusted Diluted EPS $0.65 - $0.70 $0.80 - $0.85 $0.78
Slide 18: Balance sheet and liquidity update
Balance sheet and liquidity update $ millions June 30, 2022 December 31, 2021 (1) Current portion and long-term debt $2,737 $2,711 (2) Cash and cash equivalents $98 $257 (3) Net Debt $2,639 $2,454 (4) LTM Adjusted EBITDA $489 $512 Gross Debt to LTM Adjusted EBITDA 5.6x 5.3x Net Debt to LTM Adjusted
Slide 19: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 20: Reconciliation of net (loss) income to EBITDA
Reconciliation of net (loss) income to EBITDA ($) in millions Three Months Ended June 30, Six Months Ended June 30, Twelve Months Ended 2022 2021 2022 2021 2021 Net (loss) income $ (240.1) $ 32.2 $ (246.5) $ 46.7 $ 20.1 Adjusted to add (deduct): Interest expense, net 35.6 34.1 69.0 68.0 136.3 Provis
Slide 21: Reconciliation of net (loss) income to adjusted results
Reconciliation of net (loss) income to adjusted results ($) in millions Three Months Ended June 30, Six Months Ended June 30, Twelve Months Ended 2022 2021 2022 2021 2021 Net (loss) income $ (240.1) $ 32.2 $ (246.5) $ 46.7 $ 20.1 Adjusted to add (deduct): Non-cash interest 2.0 2.1 3.9 4.0 8.3 GAAP p
Slide 22: Reconciliation of cost of goods sold
Reconciliation of cost of goods sold ($) in millions Three months ended Six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net Revenue $ 559.4 $ 535.1 $ 1,057.0 $ 1,028.2 Cost of goods sold 353.7 322.6 676.8 624.1 Cost of goods sold impairment charges 5.1 — 5.1 — Gross profit $
Slide 23: Reconciliation of segment gross profit to adjusted results
Reconciliation of segment gross profit to adjusted results Reconciliation of Generics Gross Profit to Adjusted Gross Profit Reconciliation of Generics Gross Profit to Adjusted Gross Profit ($) in millions Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 ($) in millions Six Months En
Slide 24: Additional Reconciliations
Additional Reconciliations Reconciliation of selling, general & administrative to adjusted selling, general & administrative expense: ($) in millions Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Selling, general and administrative expense $ 98.8 $ 86.2
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