Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q1 2024 Earnings Presentation
28 slides from Amneal Pharmaceuticals's earnings presentation, May 3, 2024
Slide 1: Q1 2024 Earnings Call
Q1 2024 Earnings Call May 3, 2024
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
Q1 2024 Earnings Call Agenda Strategy & Business Update 1 Chirag and Chintu Patel, Co-founders and Co-CEOs Chirag Patel, Chintu Patel, Tasos Konidaris, Co-CEO and President Co-CEO EVP & CFO Financial Results 2 Tasos Konidaris, EVP & CFO 3 Q&A Andy Boyer, Joe Renda, Jason Daly, SVP EVP - Generics SVP
Slide 4: Q1 2024 key highlights
Q1 2024 key highlights • Q1 net revenue of $659M, up +18%, and adjusted EBITDA of $152M, up +31%, Strong start reflects double-digit top-line growth in all 3 segments, combined with strong to 2024 gross margins driven by the complexity of the portfolio Affirming full year • Continue to expect 2024 n
Slide 5: Executing on Amneal's four pillars of value creation
Executing on Amneal’s four pillars of value creation Key Pillar Metric 2019 2023 LTM(2) Q1 2024 Growth projection(3) Increased OSD(1) Gx % of #1 53% 25% 25% <20% of revenue by 2027 diversification revenue Strong financial Revenues $1.6B $2.4B $2.5B High single-digit growth #2 performance Adjusted EB
Slide 6: Global diversified pharmaceutical company with a clear strategy for sustainable growth
Global diversified pharmaceutical company with a clear strategy for sustainable growth Net Revenue Business area Strategy for growth Growth projection(1) LTM Q1 2024 Retail Grow #4 U.S. Generics portfolio of ~240 products with new Low-single digit growth Generics launches and shift to complex dosage
Slide 7: Recent and upcoming growth catalysts across portfolio
Recent and upcoming growth catalysts across portfolio Retail Injectables Biosimilars Specialty International Achieved ✓ Launched: Naloxone nasal spray, ✓ Launched: Ropivacaine (IV bag), ✓ Driving uptake of: Launched: Launched: in 2024 Fluorometholone acetate, Carvedilol ER, PEMRYDI RTUTM(1) 505(b)(2
Slide 8: Key near-term growth drivers
Key near-term growth drivers Retail & Injectables Naloxone HCl ALYMSYS® IPX203 DHE Autoinjector New Launches Nasal Spray Product type Generics portfolio Complex generics Biosimilar Specialty Specialty Migraine and Cluster Therapeutic area All areas Anti-overdose Oncology Parkinson’s Disease Headache
Slide 9: Our portfolio continues to diversify – making growth sustainable
Our portfolio continues to diversify – making growth sustainable Purposeful mix shift towards a more complex portfolio Diversified revenues driving sustainable growth Generics net revenues mix ($’s) Pipeline mix Total company net revenues mix ($’s) (# of products) 6% Oral Solid AvKARE Specialty Gene
Slide 10: Deep pipeline as our wheel of innovation keeps turning
Deep pipeline as our wheel of innovation keeps turning Developing pipeline across increasingly complex dosage forms with 94% non-oral solids ~67 pipeline programs with Oral Solids: 32 Injectables: 27 Ophthalmics: 12 ~$27B TAM $27,362 $2,653 $1,596 Pending $12,325 $797 $395 ANDA’s $1,334 $362 $200 $1
Slide 11: Scaling our injectables portfolio to drive substantial growth
Scaling our injectables portfolio to drive substantial growth Significant U.S. • Notable supply chain disruptions across various players injectables • Chronic shortages, including in oncology medicines market needs • 75 injectables currently on U.S. FDA shortage list(1) Differentiated portfolio Enha
Slide 12: Rapidly growing biosimilars with key oncology medicines
Rapidly growing biosimilars with key oncology medicines Biosimilar highlights Strong biosimilar uptake Rapidly growing biosimilar market • Our 3 biosimilars generated $90M revenue • ~$192B branded products losing in LTM Q1 2024 and expect $125M+ in 2024, ALYMSYS® exclusivity 2024-2028(2), including
Slide 13: Delivering continued double-digit growth in AvKARE
Delivering continued double-digit growth in AvKARE 17%+ revenue CAGR expected from 2020 to 2025 AvKARE strategic focus areas ($ millions) $650+ • Operates as a contract administrator (wholesaler and re-packager selling to hospitals and U.S. $532 Government agencies) with 3 sales channels: – Governme
Slide 14: Expanding our Specialty business with new branded products
Expanding our Specialty business with new branded products Expected specialty Expect $500M+ Specialty highlights Key brands continue to grow pipeline launches(1) sales by 2027 ($ millions) Therapeutic focus on $390 $105 ($ millions) $500+ Potential Therapeutic Neurology and Program New launches La
Slide 15: Building the foundation for international expansion
Building the foundation for international expansion Geography Direct / Partner Strategy and status India Direct • Focusing on hospital, ophthalmics, Expanding local oncology and specialty markets presence • Utilizing local commercial team Europe Partner • Registering select products Orion Corporatio
Slide 16: Focused on affordability and access to essential medicines
Focused on affordability and access to essential medicines In April, Amneal completed its first Materiality Assessment to ESG Strategy inform its ESG strategy, priorities and risks. Members of & Priorities management and the board were consulted, as well as a selection of external stakeholders who s
Slide 17: Track record of top & bottom-line growth driven by new products
Track record of top & bottom-line growth driven by new products (3) Net Revenue Growth Adjusted EBITDA Growth ($ millions) ($ millions) +7%-11% $2,550 - $2,650 +8% $2,394 Low-double $580 - $620 +23% +6% $2,212 digit growth +5% $2,094 $390 +4% (1) $1,993 $558 $374 Double digit organic $378 $356 growt
Slide 18: Q1 2024 financial performance
Q1 2024 financial performance Results (1) Q1 2024 Q1 2023 Change Key Drivers / Commentary $ millions except for EPS Net Revenue $659 $558 +18.2% • Broad-based double-digit growth across Generics, AvKARE and Specialty • Favorable business mix from Specialty, complex generics and biosimilars, Adjusted
Slide 19: Q1 2024 performance by segment
Q1 2024 performance by segment Results (1) First Quarter Key Drivers / Commentary $ millions 2024 2023 $391 $344 • Biosimilars, new Generics launches and strong base business Net Revenue performance reflecting the value of our complex portfolio +13.8% Generics Adjusted 41.8% 37.4% • Favorable mix an
Slide 20: Affirming full year 2024 guidance
Affirming full year 2024 guidance (1) 2024 Guidance 2023 Actual Net Revenue $2.55 – $2.65B $2.4B Adjusted EBITDA $580 – $620M $558M (2) Adjusted Diluted EPS $0.53 – $0.63 $0.64 Operating Cash Flow (3) $260 – $300M $431M ex-discrete items Operating Cash Flow N/A $346M Capital Expenditures $60 – $70M
Slide 21: Strong cash generation and continued deleveraging
Strong cash generation and continued deleveraging $ millions 2024E 2023 2022 $ millions Mar. 31, 2024 Dec. 31, 2023 Net Revenue $2,550 - $2,650 $2,394 $2,212 Gross debt (3) $2,752 $2,767 Adjusted EBITDA $580 - $620 $558 $514 (4) % of Net Revenue ~23% 23.3% 23.2% Total cash $47 $92 (5) (2) Net debt $
Slide 22: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 23: 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. 23
Slide 24: Reconciliation of net loss to adjusted results
Reconciliation of net 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. 24
Slide 25: 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. 25
Slide 26: 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. 26
Slide 27: 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. 27
Slide 28: 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 1, 2024 for a complete reconcil
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