Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Merger or Acquisition (May 2018)
30 slides from Amneal Pharmaceuticals's merger presentation, May 7, 2018
Slide 1: Amneal & Impax Complete Combination
“We make healthy possible” Amneal & A Strategic Impax Combination for Long-Term Complete Growth Combination May 7, 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: Agenda
Agenda 1 Strong Foundation for Growth • Paul Bisaro, Executive Chairman 2 The New Amneal • Rob Stewart, President & CEO 3 Financial Update & Capital Structure • Bryan Reasons, CFO 4 Closing Remarks • Rob Stewart 5 Questions & Answers 3
Slide 4: Strong Foundation for Growth
Strong Foundation for Growth Paul Bisaro Executive Chairman 4
Slide 5: A Strong Foundation to Deliver Long-Term Growth
A Strong Foundation to Deliver Long-Term Growth GENERIC PRODUCT SPECIALTY PRODUCTS OUR PORTFOLIO FOCUS R&D CENTERS GLOBAL MANUFACTURING FAMILIES FACILITIES 200+ 5 Generics 8 11 GENERICS PIPELINE SPECIALTY PIPELINE Specialty 149 135 IPX203 Products Under (Parkinson’s disease) Products ANNUAL R&D MANU
Slide 6: The New Amneal
The New Amneal Robert Stewart President and CEO 6
Slide 7: Well-Positioned Generic Pipeline to Drive Growth
Well-Positioned Generic Pipeline to Drive Growth With one of the largest U.S. generic products pipelines, we are positioned to be a leader in an evolving market and meet the ever-changing needs of tomorrow 343 U.S. GENERICS PLAYERS: 1 267 FILED ANDAs 149 100 85 26 Amneal data as of April1, 2018. Inc
Slide 8: Diversified Generic Products Commercial Portfolio
Diversified Generic Products Commercial Portfolio Our portfolio consists of more than 200 product families including difficult-to-manufacture and high barrier-to-entry products across multiple dosage forms Yuvafem Adrenaclick Diclofenac Aspirin and Oseltamivir (Estradiol Vaginal (epinephrine Sodium
Slide 9: Stable Cash Flow from Specialty Franchise
Stable Cash Flow from Specialty Franchise Proprietary marketed products − Central nervous system disorders − Parasitic infections − Other therapeutic areas Established U.S. sales and marketing function ‒ 130 sales reps ‒ Primarily targeting neurologists, movement disorder specialists and other h
Slide 10: Broad R&D Capabilities
Broad R&D Capabilities ORAL SOLIDS & LIQUIDS TOPICALS INJECTABLES & STERILE TRANSDERMALS RESPIRATORY • IR/ER tablets • Gels • Peptides • Matrix • Metered Dose • Hard Gelatin Capsules • Creams • Microspheres • Hydrogel • Dry Powder • Softgel Capsules • Ointments & • Liposomes • Form Fill Seal • Nasal
Slide 11: Diversified and High-Value Generic Pipeline
Diversified and High-Value Generic Pipeline Approximately 284 total projects of which ~50% are high value opportunities1 Transdermal Transdermal 5% - $2.4B Ophthalmic Nasal Spray 4% - $3.5B Other Nasal Spray 2% $0.3B 1% - $0.5B 1% - $0.1B 1% - $0.2B Inhalation Injectable 6% - $13.1B Topical 17% - $8
Slide 12: Pending ANDA Pipeline Offers Numerous Potential High-Value Opportunities
Pending ANDA Pipeline Offers Numerous Potential High-Value Opportunities to Drive Growth A snapshot of only a few of the many high-value opportunities in our pipeline Products Brand LTM IMS Sales Dimethyl Fumarate DR Capsules Tecfidera® $3,548 Glatiramer Injection 40mg Copaxone HD® $3,457 Lisdexamfe
Slide 13: Ongoing Commitment to Invest in Biosimilar Pipeline
Ongoing Commitment to Invest in Biosimilar Pipeline New Partnership Existing Partnership Amneal entered into a licensing and supply agreement for biosimilar candidate Avastin® (bevacizumab) Amneal will be the exclusive partner for the bevacizumab Product Filed product in the US market Amneal w
Slide 14: Diverse and Extensive Manufacturing Capabilities
Diverse and Extensive Manufacturing Capabilities Manufacturing Piscataway, NJ: Distribution Complex and High Value Products, Topicals, Transdermals, High Potency and Hormonal Products Cashel, Ireland: Branchburg, NJ: MDI, DPI, Hormonal Injectables Oral Liquid Products, Nasal Sprays Dahej, India: Act
Slide 15: Substantial Synergy Opportunity
Substantial Synergy Opportunity Expected $200+ million in annual incremental synergies within 3 years of close1 Estimated Actual Cost Savings Realized by Year ($ in millions) $200+ $50+ $40-$45 $65-$70 $30-$35 2018E 2019E 2020E 2021E Total ($ in millions) Previously Disclosed Run-Rate Synergies2 Syn
Slide 16: Amneal Acquires Gemini Laboratories LLC
Amneal Acquires Gemini Laboratories LLC Gemini Laboratories is focused on marketing and sales of branded and specialty products Portfolio includes licensed and owned, niche and mature brands, and a pipeline of 505(b)(2)’s for niche therapeutic areas Operating synergy between Gemini and our Spe
Slide 17: Financial Update & Capital Structure
Financial Update & Capital Structure Bryan Reasons SVP, Chief Financial Officer 17
Slide 18: Combined Company 1Q18 Financial Results
Combined Company 1Q18 Financial Results Change Generic revenue drivers: $ millions 1Q 2018 1Q 2017 ‒ Product launches including oseltamivir, 1Q/1Q methylphenidate HCI ER and erythromycin Total Revenues, net $417.5 $410.1 2% ‒ Reduced sales of budesonide, lidocaine, yuvafem- Generic revenues, net $
Slide 19: Debt and Capital Structure
Debt and Capital Structure Cash and cash equivalents of ~$100 million1 Estimated share count: $2.7 billion term loan; LIBOR + 350 basis points - Legacy Impax: ~75 million $500 million revolver available - New shares: ~225 million - Total shares: ~300 million2 Cash Flow Targeted for Debt Redu
Slide 20: Closing Remarks
Closing Remarks Robert Stewart President and CEO 20
Slide 21: 2018 Key Guidance Assumptions
2018 Key Guidance Assumptions Growth in adjusted EBITDA weighted towards second half of 2018 due to estimated timing of new approvals and launches Generic division growth driven by new product launches which are expected to more than offset additional competition on existing portfolio ‒ Potentia
Slide 22: Full Year 2018 Financial Guidance
Full Year 2018 Financial Guidance Guidance Range Full Year 2018 Adjusted Gross Margins 50% - 55% Adjusted R&D Expense as a % of Total Revenues1 10% - 15% Adjusted SG&A Expense as a % of Total Revenues 13% - 16% Adjusted EBITDA2 $600 to $650 million Adjusted EPS $0.95 - $1.10 Adjusted Effective Tax R
Slide 23: Adjusted EBITDA Bridge to Full Year 2018 Guidance
Adjusted EBITDA Bridge to Full Year 2018 Guidance Adjusted EBITDA $625 Guidance +84.0 $600 to $650 Million $465 $381 1Q 2018 Seasonality Full Year Backlog Specialty Pricing Net Volume/ 2018 Year To Go Mid-Point Annualized 1st Qtr Epinephrine Pharma Initatives Synergies Price Adjusted Launches Full Y
Slide 24: Focused on Operational Execution
Focused on Operational Execution… Rapidly and seamlessly combine Amneal and Impax Focus on synergy capture and cost control Maintain high level of quality and compliance Continue to provide superior service to our customers Maximize value of enhanced commercial portfolio to grow revenue an
Slide 25: And Continued Investment in Growth Initiatives
…And Continued Investment in Growth Initiatives OUR PORTFOLIO FOCUS Specialty Generics Biosimilars Products Invest in organic growth through focused R&D Pursue creative business development to strengthen our franchises and other adjacencies 25
Slide 26: Questions & Answers
Questions & Answers 26
Slide 27: Appendix & Non-GAAP Reconciliations
Appendix & Non-GAAP Reconciliations 27
Slide 28: Disclosed ANDA Pending Pipeline
Disclosed ANDA Pending Pipeline Product Brand LTM IMS Sales Product Brand LTM IMS Sales Pemetrexed injection Alimta® $1,053 Pitavastatin Calcium Tablet Livalo® $292 Lubiprostone Capsule Amitiza® $489 Guaifenesin Tablet Mucinex® $75 Testosterone Gel 1.62% Androgel® $1,062 Guaifenesin + Dextromethorph
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation The following table reconciles combined Amneal Pharmaceuticals LLC and Impax Laboratories LLC reported cost of revenues to adjusted cost of revenues for purposes of determining adjusted gross margin (unaudited, in thousands). Three months ended March 31, 2018 March 31
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation The following table reconciles the combined Amneal Pharmaceuticals LLC and Impax Laboratories LLC reported net loss to adjusted EBITDA: (unaudited, in thousands). Three months ended March 31, 2018 March 31, 2017 Net loss $ (79,397) $ (56,578) Adjusted to add (deduct):
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