Amneal Pharmaceuticals, Inc. · NASDAQ:AMRX
Amneal Pharmaceuticals — Q4 2023 Earnings Presentation
30 slides from Amneal Pharmaceuticals's earnings presentation, Mar 1, 2024
Slide 1: Q4 2023 Earnings Call
Q4 2023 Earnings Call March 1, 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 and Today's Participants
Q4 2023 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 and President Co-CEO EVP & CFO 3 Closing Remarks Chirag Patel, Co-CEO 4 Q&A Andy Boyer, Harsher Sing
Slide 4: Q4 2023 key highlights
Q4 2023 key highlights • 2023 net revenue of $2.4B +8% growth and adjusted EBITDA of $558M +9% growth Accelerated reflects broad-based revenue strength with all three segments growing full year 2023 • Driven by key catalysts: Record year of 39 new retail and injectables launches; growth Biosimilars
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 Growth projection(2) Increased <20% of revenue by 2027 #1 OSD(1) Gx % of revenue 53% 25% diversification Revenues $1.6B $2.4B High single-digit growth Strong financial #2 performance Meaningful acceleration Adjusted EBI
Slide 6: Global diversified pharmaceutical company with a clear strategy for sustainable growth
Global diversified pharmaceutical company with a clear strategy for sustainable growth 2023 Net Business area Strategy for growth Growth projection(1) Revenue Retail Grow #4 U.S. Generics portfolio of 230+ products with new Low-single digit growth Generics launches and shift to complex dosage forms
Slide 7: Recent and upcoming growth catalysts across portfolio
Recent and upcoming growth catalysts across portfolio Retail Injectables Biosimilars Specialty International Recently 2023 launches 2023 Launches Launched IPX203 pending NDA Launched achieved ✓ Posaconazole, Pirfenidone, Lubiprostone, ✓ Azacitidine, Prochlorperazine ✓ ALYMSYS®, a • Complete response
Slide 8: Highlighting key near-term growth drivers
Highlighting key near-term growth drivers Retail & Injectables Naloxone HCl ALYMSYS® IPX203 DHE Autoinjector New Launches Nasal Spray Product type Generics portfolio Complex generics Biosimilar Specialty Specialty Migraine and Cluster Therapeutic area All areas Anti-overdose Oncology Parkinson’s Dis
Slide 9: Our portfolio continues to diversify – making growth sustainable
Our portfolio continues to diversify – making growth sustainable Purposeful mix shift towards a more complex portfolio Diversified revenues driving sustainable growth Generics net revenues mix ($’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 ~72 pipeline programs with Ophthalmics: 13 Oral Solids: 32 Injectables: 27 ~$28B TAM $25,846 $1,569 Pending $12,322 $806 $3,011 $411 ANDA’s $2,047 $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 • 78 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 in 1st year Rapidly growing pharma market • Our 3 biosimilars delivered 2023 revenue of • U.S. Biosimilar market expected to grow $66M in their first commercial year and above ALYMSYS® to ~$50B by
Slide 13: Delivering continued double-digit growth in AvKARE
Delivering continued double-digit growth in AvKARE 15%+ revenue CAGR expected from 2020 to 2025 AvKARE strategic focus areas ($ millions) $600+ • Operates as a contract administrator (wholesaler $532 and re-packager selling to hospitals and U.S. Government agencies) with 3 sales channels: $406 – Gov
Slide 14: Expanding our Specialty business with new branded products
Expanding our Specialty business with new branded products Expected specialty Expect $500M+ Specialty highlights Key brands continue to grow pipeline launches (1) sales by 2027 Therapeutic focus on ($ millions) $390 ($ millions) $500+ $104 Potential Therapeutic Neurology and Program New launches L
Slide 15: Building the foundation for international expansion
Building the foundation for international expansion Geography Direct / Partner Strategy and status India Direct • Focusing on hospital, ophthalmics, Expanding local oncology and specialty markets presence • Utilizing local commercial team Europe Partner • Registering select products Orion Corporatio
Slide 16: Focused on affordability and access to essential medicines
Focused on affordability and access to essential medicines Expanding In December, we signed a license agreement with BIAL where Amneal will have exclusive rights to market and distribute Parkinson’s ONGENTYS®, an add-on treatment to carbidopa/levodopa franchise (CD/LD) in patients with Parkinson’s d
Slide 17: Track record of top & bottom-line growth driven by new products
Track record of top & bottom-line growth driven by new products (3) Net Revenue Growth Adjusted EBITDA Growth ($ millions) ($ millions) +7 to 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 Low-double organic $378 $356 digit
Slide 18: Q4 2023 financial performance
Q4 2023 financial performance Results (1) Q4 2023 Q4 2022 Change Key Drivers / Commentary $ millions except for EPS • Growth driven by AvKARE, Specialty, Biosimilars, and new complex Net Revenue $617 $610 +1.2% Generics, and impacted by a timing of orders Adjusted Gross Margin 42.8% 43.4% (70 bps) •
Slide 19: Full Year 2023 performance: revenue +8% and adj. EBITDA +9%
Full Year 2023 performance: revenue +8% and adj. EBITDA +9% Results (1) 2023 2022 Change Key Drivers / Commentary $ millions except for EPS • Strong performance across our diversified pharmaceutical portfolio with Net Revenue $2,394 $2,212 +8.2% all three segments growing, driven by AvKARE, Biosimil
Slide 20: Performance by segment
Performance by segment Results (1) Fourth Quarter Full Year Q4 Key Drivers / Commentary $ millions 2023 2022 2023 2022 $363 $399 $1,471 $1,432 • Impacted by year-end timing of orders Net Revenue • Biosimilars and new Gx launches added +$34M YoY (9.1%) +2.7% Generics Adjusted 42.8% 41.6% 41.7% 42.3%
Slide 21: Strong 2023 financial performance reflects upward trajectory
Strong 2023 financial performance reflects upward trajectory 2023 Actual 2023 Guidance 2022 Actual Net Revenue $2.4B $2.37 - $2.42B $2.2B Adjusted EBITDA $558M $540 - $550M $514M (1) Adjusted Diluted EPS $0.64 $0.51 - $0.58 $0.68 (2) Operating Cash Flow ex-discrete items $431M $250 - $280M $211M Ope
Slide 22: Full year 2024 guidance reflects continued strong growth profile
Full year 2024 guidance reflects continued strong growth profile 2024 Guidance 2023 Actual (1) 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 C
Slide 23: Higher cash generation and continued progress deleveraging
Higher cash generation and continued progress deleveraging $ millions 2024E 2023 2022 $ millions Dec. 31, 2023 Dec. 31, 2022 Net Revenue $2,550 - $2,650 $2,394 $2,212 Gross debt (3) $2,767 $2,740 Adjusted EBITDA $580 - $620 $558 $514 (4) % of Net Revenue ~23% 23.3% 23.2% Total cash $92 $26 (5) (2) N
Slide 24: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 25: 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. 25
Slide 26: 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. 26
Slide 27: 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. 27
Slide 28: 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. 28
Slide 29: 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. 29
Slide 30: Calculation of Gross and Net Leverage
Calculation of 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 reconciliation of our GAAP
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