Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q3 2020 Earnings Presentation
33 slides from Amneal Pharmaceuticals's earnings presentation, Nov 6, 2020
Slide 1: Q3 2020 Earnings Call: Strategic Priorities and Financial Results
Q3 2020 Earnings Call Strategic Priorities and Financial Results November 6, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation, regarding matters that are not historical facts, may be forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management’s
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income, adjusted net income per diluted share, adjusted gross profit, adjusted gross margin, adjusted operating income and adjusted cost of goods sold, which are intend
Slide 4: Agenda
Agenda Strategic Execution 1 Chirag and Chintu Patel, Co-CEOs Q3 2020 Financial Results 2 Tasos Konidaris, EVP & CFO Closing Remarks 3 Chirag Patel, Co-CEO 4 Q&A 4
Slide 5: Continued Growth & Operational Excellence
Continued Growth & Chirag and Chintu Patel Operational Co-CEOs Excellence 5
Slide 6: Executing on Our Strategic Priorities
Executing on Our Strategic Priorities Solid Financial Performance Grow our Base Business Revenue: $519.3 Million; +37% Revitalize Generics with new product launches and Adjusted EBITDA: $113.6 Million; +60% increasing market share in base business Adjusted EPS: $0.16; +300% Grow Specialty by focusin
Slide 7: Focused on Patients While Managing Through COVID-19
Focused on Patients While Managing Through COVID-19 Strategic Task Force of Top Leaders Guiding Our Preparedness, Response, Mitigation & Continuity Generics / Specialty • Volume of patient visits to physician and health facilities is improving compared to the 2nd Quarter, but still lagging normal tr
Slide 8: Generics – Driving Improvement and Diversification
Generics – Driving Improvement and Diversification Working Aggressively To Expand Sales and Improve Profitability, With ~ 250 Currently Marketed Products New Product Launches and Markets Robust Pipeline Margin Expansion • Grow market share as we plan to • Expecting to file 30 products in • Over time
Slide 9: Continuing Generic Pipeline Execution
Continuing Generic Pipeline Execution What We’ve Done: What’s Next: 1 Notable Complex Generic Launches Continued Pipeline Execution Generics Injectables Transdermal Topical/Ring Oral Solids Liquid/Nasal Ophthalmic 9 (1) Generic versions of innovator products. All trademarks are the property of their
Slide 10: Generics Pipeline Focused on Complex & Differentiated Dosage
Generics Pipeline Focused on Complex & Differentiated Dosage ANDAs Submitted (Pending + TA): 86 Projects Development Pipeline: 104 projects 1%1% 1% 3% 3% 6% 6% 14% 9% 8% 13% 49% 11% 9% 8% 8% 13% 9% 28% Inhalation Nasal Spray Transdermal Inhalation Nasal Spray Transdermal Oral liquid Oral liquid Opht
Slide 11: Maximizing Well-Established Specialty Footprint & Infrastructure
Maximizing Well-Established Specialty Footprint & Infrastructure Growing franchise by focusing on marketing execution, building KOL relationships, and Building a Leading Position Offering Proven Options rapidly adapting to the changing healthcare in Movement Disorders for Migraine Patients landscape
Slide 12: Specialty – Growth Engine
Specialty – Growth Engine Therapeutic Program Preclinical Phase 1 Phase 2 Phase 3 Estimated Launch / Major Catalyst Area Topline data expected IPX-203 for PD Neurology 2023 2H 2021 K127 for MG(1) Neurology 2023 Expect to file in 2022 bNeupogen(2) Oncology Filed; Awaiting FDA Correspondence bNeulasta
Slide 13: IPX203: Long-Acting Controlled-Release CD/LD Studied
IPX203: Long-Acting Controlled-Release CD/LD Studied IPX-203 is being studied as a possible improvement in efficacy and dosing convenience beyond Rytary. If approved, it would provide an expanded market opportunity for Amneal in PD Possible Indication & Product Profile for IPX-203 • Carbidopa-levodo
Slide 14: K127: Pyridostigmine GRANDE Being Studied
K127: Pyridostigmine GRANDE™* Being Studied In-licensed complementary CNS asset that expands portfolio into neuromuscular disorders, broadening Amneal’s reach in neurology Possible Indication & Product Profile for K127 Myasthenia Gravis (MG) is a rare autoimmune neuromuscular disease that causes e
Slide 15: Financial Review
Financial Review Tasos Konidaris EVP & CFO
Slide 16: Q3 2020 Results
Q3 2020 Results Adjusted Results(1) Variance The addition of AvKARE, new product launches and cost management drive EBITDA growth versus prior-year $ in millions Q3 2020 Q3 2019 Q2 2020 YOY Sequential Revenue 519 378 465 141 54 • Revenue YOY growth due to: AvKARE(2) ($90 million), new product launch
Slide 17: Generics Segment
Generics Segment Adjusted Results(1) $ millions Net Revenue Gross Margin Operating Income $342 $291 $307 $82 35% 37% 30% $62 $40 Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 Year-over-year increase: volume increases, Year-over-year operating efficiencies and product Year-over-year: op
Slide 18: Specialty Segment
Specialty Segment Adjusted Results(1) $ millions Net Revenue Gross Margin Operating Income $50 $94 $87 $88 $41 $42 74% 74% 74% Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20 Year-over-year slight increase: growth in Rytary Year-over-year and Sequential: in line with prior Year-over-year
Slide 19: Balance Sheet and Liquidity
Balance Sheet and Liquidity $ millions Liquidity at September 30, 2020 As of December 31, As of Sept 30, 2020 2019 Current portion and long-term debt(1) 2,787 2,631 Cash and cash equivalents $284 Cash and cash equivalents(2) 284 153 ABL Available(6) $498 Net Debt(3) 2,503 2,478 Gross Debt to LTM
Slide 20: Updating 2020 Financial Outlook
Updating 2020 Financial Outlook(1) 2020 Revised (in $ millions except for Adjusted Diluted EPS) 2020 Current Guidance Guidance Net Revenues $1,875 - $1,975 $1,950 - $2,000 Adjusted Gross Margin 44% - 46% 41% - 42% Adjusted EBITDA $400 - $450 $430 - $460 Adjusted Diluted EPS $0.45 – $0.60 $0.55 – $0.
Slide 21: Key Takeaways
Key Takeaways Strong operational and financial Highly adaptive to COVID-19 Relentless focus on performance in Q3 despite COVID reinvigorating the company • Proactive planning • Sound strategic focus with • Building on our recent success, momentum in execution • Resiliency and dedication of we contin
Slide 22: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 23: Reconciliation of Net (Loss) Income to Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Net (Loss) Income to Adjusted Net Income and Calculation of Adjusted Diluted EPS ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Net loss $ (22,033) $ (363,392) $ (23,944) Adjusted to add (deduct): Non-cash interest 2,021 1,631 1,998 GAAP Inc
Slide 24: Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA ($) in thousands Three months ended September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Net (loss) income $ (22,033) $ (23,944) $ 121,517 $ (64,903) $ (363,392) $ (50,526)
Slide 25: Gross Debt and Net Debt to LTM Adjusted EBITDA
Gross Debt and Net Debt to LTM Adjusted EBITDA ($) in thousands Last Twelve Months September 30, 2020 December 31, 2019 Current portion of long-term debt, net $ 29,776 $ 21,479 Long-term debt, net 2,757,139 2,609,046 Cash and cash equivalents and restricted cash 283,650 152,822 Net debt 2,503,265 2,
Slide 26: Reconciliation of Cost of Goods Sold to Adjusted Cost of Goods Sold
Reconciliation of Cost of Goods Sold to Adjusted Cost of Goods Sold ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Cost of goods sold $ 353,345 $ 267,717 $ 319,666 Cost of goods sold impairment charges 32,364 56,132 759 Adjusted to deduct (add): Amortization
Slide 27: Reconciliation of Research and Development to Adjusted Research and Development
Reconciliation of Research and Development to Adjusted Research and Development ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Research and development $ 44,519 $ 38,125 $ 45,572 IPR&D impairment charges — 23,382 — Intellectual property legal development expe
Slide 28: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of Selling, General & Administrative to Adjusted Selling, General, & Administrative ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Selling, general and administrative $ 83,120 $ 63,797 $ 80,944 Adjusted to deduct (add): Amortization 8,694 — 8,0
Slide 29: Reconciliation of Generics Operating Income to Adjusted Operating Income
Reconciliation of Generics Operating Income to Generics Adjusted Operating Income ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Operating income (loss) $ 26,448 $ (80,361) $ 26,516 Adjusted to add (deduct): Acquisition and site closure expenses 2,849 5,941 4
Slide 30: Reconciliation of Generics Cost of Goods Sold to Adjusted Cost of Goods Sold
Reconciliation of Generics Cost of Goods Sold to Generics Adjusted Cost of Goods Sold ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Cost of goods sold $ 229,067 $ 217,773 $ 218,909 Cost of goods sold impairment charges 32,364 49,115 759 Adjusted to deduct: A
Slide 31: Reconciliation of Specialty Operating Income to Adjusted Operating Income
Reconciliation of Specialty Operating Income to Specialty Adjusted Operating Income ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Operating income $ 15,662 $ 3,596 $ 23,569 Adjusted to add: Amortization 25,126 27,103 25,445 Acquisition and site closure expen
Slide 32: Reconciliation of Specialty Cost of Goods Sold to Adjusted Cost of Goods Sold
Reconciliation of Specialty Cost of Goods Sold to Specialty Adjusted Cost of Goods Sold ($) in thousands Three months ended September 30, 2020 September 30, 2019 June 30, 2020 Cost of goods sold $ 47,735 $ 49,944 $ 50,229 Cost of goods sold impairment charges — 7,017 — Adjusted to deduct: Amortizati
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