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02-05-2025
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Amneal Reports First Quarter 2025 Financial Results
‒ Q1 2025 Net Revenue of $695 million; GAAP Net Income of $12 million; Diluted Income per Share of $0.04 ‒ ‒ Adjusted EBITDA of $170 million; Adjusted Diluted EPS of $0.21 ‒ ‒ Affirming 2025 Full Year Guidance ‒ BRIDGEWATER, N.J., May 02, 2025--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) ("Amneal" or the "Company") today announced its results for the first quarter ended March 31, 2025. "Amneal delivered another strong quarter to start 2025, with broad-based growth across all three segments driven by our team's outstanding execution. We are very pleased with the commercial uptake of CREXONT® for Parkinson's Disease and the momentum of our recently launched injectable products, which are delivering tremendous value to patients, caregivers and customers. As a leading U.S.-based biopharmaceutical company, Amneal is proud to provide millions of Americans with access to affordable and innovative treatments—and we believe we are just getting started. With our diverse portfolio, expansive footprint in the U.S. and globally, and a resilient management team, we are confident in our ability to deliver sustainable growth and value creation for our stakeholders in 2025 and beyond as we embark on our exciting next chapter of growth and success," said Chirag and Chintu Patel, Co-Chief Executive Officers. First Quarter 2025 Results Net revenue in the first quarter of 2025 was $695 million, an increase of 5% compared to $659 million in the first quarter of 2024. Affordable Medicines net revenue increased 6% driven by strong performance of our complex product portfolio and new product launches. Specialty net revenue increased 3% driven by key branded products, including CREXONT® and UNITHROID®. AvKARE net revenue increased 6% driven by growth in the government label sales channel. Net income attributable to Amneal Pharmaceuticals, Inc. was $12 million in the first quarter of 2025 compared to a net loss of $92 million in the first quarter of 2024, reflecting higher revenue and gross profit, and a legal settlement charge of $94 million in the first quarter of 2024. Adjusted EBITDA in the first quarter of 2025 was $170 million, an increase of 12% compared to the first quarter of 2024, reflective of strong revenue performance, higher gross margin and operating expense leverage. Diluted income per share in the first quarter of 2025 was $0.04 compared to diluted loss per share of $0.30 for the first quarter of 2024, due to higher operating income and lower interest expense. Adjusted diluted earnings per share in the first quarter of 2025 was $0.21, an increase of 50%, compared to $0.14 for the first quarter of 2024. The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the "Non-GAAP Financial Measures" section and the accompanying GAAP to non-GAAP reconciliation tables for more information. Affirming Full Year 2025 Financial Guidance The Company is affirming its previously provided full year 2025 guidance. Net revenue $3.0 billion - $3.1 billion Adjusted EBITDA (1) $650 million - $675 million Adjusted diluted EPS (2) $0.65 - $0.70 Operating cash flow $255 million - $285 million Operating cash flow, excluding discrete items (3) $280 million - $310 million Capital expenditures (4) Approximately $100 million (1) Includes 100% of adjusted EBITDA from AvKARE. See also "Non-GAAP Financial Measures" below. (2) Accounts for 35% non-controlling interest in AvKARE. Guidance assumes approximately 330 million weighted-average diluted shares outstanding for the year ending December 31, 2025. (3) Excludes discrete items such as legal settlement payments. (4) Reflects estimated capital expenditures, net of expected contributions from an alliance partner of $20 million. Amneal's 2025 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results. Conference Call Information Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, May 2, 2025, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company's website at To access the call through a conference line, dial (833) 470-1428 (in the U.S.) with access code 170097. A replay of the conference call will be posted shortly after the call. For a list of toll-free international numbers, visit this website: About Amneal Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, NJ, is a global biopharmaceutical company. We make healthy possible through the development, manufacturing, and distribution of a diverse portfolio of over 280 pharmaceutical products, primarily within the United States. In our Affordable Medicines segment, we are expanding across a broad range of complex product categories and therapeutic areas, including injectables and biosimilars. In our Specialty segment, we have a growing portfolio of branded pharmaceuticals focused primarily on central nervous system and endocrine disorders. Through our AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit 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 regarding management's intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; statements regarding our expansion into high-growth areas and statements regarding our positioning, including our ability to drive sustainable value creation, and other non-historical statements. Words such as "plans," "expects," "will," "anticipates," "estimates," and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; the imposition of tariffs may adversely affect our business, results of operations and financial condition; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; the impact of global economic, political or other catastrophic events; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our class A common stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, including under Item 1A, "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. Non-GAAP Financial Measures This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating cash flow and net leverage, which are intended as supplemental measures of the Company's performance that are not required by or presented in accordance with GAAP. Adjusted diluted EPS reflects diluted earnings per share based on adjusted net income (loss), which is net income (loss) adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision for income taxes, (iii) amortization, (iv) stock-based compensation expense, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) charges related to certain legal matters, including interest, net, (viii) asset impairment charges, (ix) increase in tax receivable agreement liability, (x) other and (xi) net income attributable to non-controlling interests, and (B) include non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three months ended March 31, 2025 and 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock (inclusive of the effect of dilutive securities). EBITDA reflects net income (loss) adjusted to exclude interest expense, net, provision for income taxes and depreciation and amortization. Adjusted EBITDA reflects net income (loss) adjusted to exclude (i) interest expense, net, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) acquisition, site closure, and idle facility expenses, (vi) restructuring and other charges, (vii) charges related to legal matters, net, (viii) asset impairment charges, (ix) foreign exchange (gain) loss, (x) increase in tax receivable agreement liability, and (xi) other. Adjusted operating cash flow reflects cash flow from operations excluding discrete items such as legal settlement payments. Net leverage is calculated as net debt (total outstanding principal on the Company's debt, less cash and cash equivalents), divided by adjusted EBITDA for the year or trailing twelve months then ended. Management uses these non-GAAP measures internally to evaluate and manage the Company's operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company's board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company's financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company's financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management. These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company's GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company's business. A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below. Amneal Pharmaceuticals, Inc. Consolidated Statements of Operations (unaudited; $ in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Net revenue $ 695,420 $ 659,191 Cost of goods sold 439,529 421,131 Gross profit 255,891 238,060 Selling, general and administrative 118,288 112,595 Research and development 40,040 39,298 Intellectual property legal development expenses 1,767 984 Restructuring and other charges 571 1,470 Charges related to legal matters, net — 94,359 Other operating (income) expense (5,122 ) 100 Operating income (loss) 100,347 (10,746 ) Other (expense) income: Interest expense, net (56,939 ) (65,703 ) Foreign exchange gain (loss), net 4,247 (1,197 ) Increase in tax receivable agreement liability (10,687 ) (1,948 ) Other income, net 518 4,072 Total other expense, net (62,861 ) (64,776 ) Income (loss) before income taxes 37,486 (75,522 ) Provision for income taxes 12,868 6,156 Net income (loss) 24,618 (81,678 ) Less: Net income attributable to non-controlling interests (12,423 ) (9,965 ) Net income (loss) attributable to Amneal Pharmaceuticals, Inc. $ 12,195 $ (91,643 ) Net income (loss) per share attributable to Amneal Pharmaceuticals, Inc.'s Class A common stockholders: Basic $ 0.04 $ (0.30 ) Diluted $ 0.04 $ (0.30 ) Weighted-average common shares outstanding: Basic 311,054 307,279 Diluted 323,961 307,279 Amneal Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (unaudited; $ in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 59,187 $ 110,552 Restricted cash 6,583 7,868 Trade accounts receivable, net 754,236 775,731 Inventories 601,433 612,454 Prepaid expenses and other current assets 88,524 80,717 Related party receivables 487 484 Total current assets 1,510,450 1,587,806 Property, plant and equipment, net 427,231 424,908 Goodwill 597,497 597,436 Intangible assets, net 689,136 732,377 Operating lease right-of-use assets 29,103 31,388 Operating lease right-of-use assets - related party 10,447 10,964 Financing lease right-of-use assets 55,967 56,433 Other assets 45,418 60,133 Total assets $ 3,365,249 $ 3,501,445 Liabilities and Stockholders' Deficiency Current liabilities: Accounts payable and accrued expenses $ 628,572 $ 735,450 Current portion of liabilities for legal matters 43,503 31,755 Revolving credit facility 290,000 100,000 Current portion of long-term debt, net 31,790 224,213 Current portion of operating lease liabilities 8,986 9,435 Current portion of operating lease liabilities - related party 3,449 3,396 Current portion of financing lease liabilities 3,319 3,211 Related party payables - short term 66,205 22,311 Total current liabilities 1,075,824 1,129,771 Long-term debt, net 2,153,979 2,161,790 Operating lease liabilities 22,854 24,814 Operating lease liabilities - related party 8,520 9,391 Financing lease liabilities 56,604 56,889 Related party payables - long term 10,687 50,900 Liabilities for legal matters - long term 72,979 85,479 Other long-term liabilities 23,191 26,949 Total long-term liabilities 2,348,814 2,416,212 Redeemable non-controlling interests 72,611 64,974 Total stockholders' deficiency (132,000 ) (109,512 ) Total liabilities and stockholders' deficiency $ 3,365,249 $ 3,501,445 Amneal Pharmaceuticals, Inc. Consolidated Statements of Cash Flows (unaudited; $ in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ 24,618 $ (81,678 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 60,159 55,528 Unrealized foreign currency (gain) loss (3,596 ) 1,511 Amortization of debt issuance costs and discount 6,811 6,803 Reclassification of cash flow hedge (6,444 ) (6,515 ) Intangible asset impairment charges — 920 Stock-based compensation 7,258 6,722 Inventory provision 23,669 22,923 Other operating charges and credits, net 1,313 1,350 Changes in assets and liabilities: Trade accounts receivable, net 21,148 (55,173 ) Inventories (13,263 ) (12,200 ) Prepaid expenses, other current assets and other assets (513 ) (11,708 ) Related party receivables (2 ) (562 ) Accounts payable, accrued expenses and other liabilities (112,626 ) 62,174 Related party payables (1,124 ) 5,495 Net cash provided by (used in) operating activities 7,408 (4,410 ) Cash flows from investing activities: Purchases of property, plant and equipment (13,162 ) (9,198 ) Acquisition of intangible assets (4,200 ) (9,700 ) Deposits for future acquisition of property, plant and equipment (960 ) (862 ) Proceeds from sale of property, plant and equipment 524 — Net cash used in investing activities (17,798 ) (19,760 ) Cash flows from financing activities: Payments of principal on debt, revolving credit facilities, financing leases and other (235,528 ) (63,377 ) Borrowings on revolving credit facilities 218,000 48,000 Proceeds from exercise of stock options 69 28 Employee payroll tax withholding on restricted stock unit and performance stock unit vesting (21,639 ) (7,212 ) Tax distributions to non-controlling interests (68 ) (594 ) Net cash used in financing activities (39,166 ) (23,155 ) Effect of foreign exchange rate on cash (470 ) (165 ) Net decrease in cash, cash equivalents, and restricted cash (50,026 ) (47,490 ) Cash, cash equivalents, and restricted cash - beginning of period 118,420 99,107 Cash, cash equivalents, and restricted cash - end of period $ 68,394 $ 51,617 Cash and cash equivalents - end of period $ 59,187 $ 46,520 Restricted cash - end of period 6,583 5,097 Long-term restricted cash included in other assets - end of period 2,624 — Cash, cash equivalents, and restricted cash - end of period $ 68,394 $ 51,617 Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Ended March 31, Year Ended December 31, 2025 2024 2024 Net income (loss) $ 24,618 $ (81,678 ) $ (73,876 ) Adjusted to add: Interest expense, net 56,939 65,703 258,595 Provision for income taxes 12,868 6,156 18,863 Depreciation and amortization 60,159 55,528 236,191 EBITDA (Non-GAAP) $ 154,584 $ 45,709 $ 439,773 Adjusted to add (deduct): Stock-based compensation expense 7,128 6,506 27,552 Acquisition, site closure, and idle facility expenses (1) 1,241 444 2,112 Restructuring and other charges 571 1,470 2,265 Charges related to legal matters, net (2) — 94,359 96,692 Asset impairment charges 68 1,015 1,372 Foreign exchange (gain) loss (4,247 ) 1,197 6,846 Increase in tax receivable agreement liability 10,687 1,948 50,680 Other (3) (54 ) (297 ) 150 Adjusted EBITDA (Non-GAAP) $ 169,978 $ 152,351 $ 627,442 Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Calculation of Net Leverage March 31, 2025 December 31, 2024 Term Loan Due 2025 $ — $ 191,979 Term Loan Due 2028 2,278,158 2,292,856 Amended New Revolving Credit Facility 290,000 100,000 Gross debt $ 2,568,158 $ 2,584,835 Less: Cash and cash equivalents 59,197 110,552 Net debt (Non-GAAP) (4) $ 2,508,961 $ 2,474,283 Adjusted EBITDA (Non-GAAP) Year ended December 31, 2024 $ 627,442 Less: Three months ended March 31, 2024 152,351 Add: Three months ended March 31, 2025 169,978 Last twelve months ended March 31, 2025 $ 645,069 Net leverage (Non-GAAP) (5) 3.9x 3.9x Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited; $ in thousands, except per share amounts) Reconciliation of Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share Three Months Ended March 31, 2025 2024 Net income (loss) $ 24,618 $ (81,678 ) Adjusted to add (deduct): Non-cash interest 334 82 GAAP provision for income taxes 12,868 6,156 Amortization 44,274 38,671 Stock-based compensation expense 7,128 6,506 Acquisition, site closure expenses, and idle facility expenses (1) 1,227 444 Restructuring and other charges 571 1,453 Charges related to legal matters, including interest, net (2) — 94,486 Asset impairment charges 68 1,015 Increase in tax receivable agreement liability 10,687 1,948 Other (3) (44 ) (297 ) Provision for income taxes (6) (22,765 ) (14,341 ) Net income attributable to non-controlling interests (12,423 ) (9,965 ) Adjusted net income (Non-GAAP) $ 66,543 $ 44,480 Weighted average diluted shares outstanding (Non-GAAP) (7) 323,961 316,559 Adjusted diluted earnings per share (Non-GAAP) $ 0.21 $ 0.14 Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited) Explanations for Non-GAAP Reconciliations (1) Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2025 primarily included costs related to a planned facility closure and rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2024 and year ended December 31, 2024 primarily included rent for vacated properties. (2) For the three months ended March 31, 2024 and year ended December 31, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. (3) System implementation expense of $0.9 million and change in the fair value of contingent consideration of $0.1 million, formerly included in their own captions in the non-GAAP reconciliations, for the three months ended March 31, 2024 have been reclassified to the caption "other" to conform to the current period presentation. System implementation expense of $2.4 million and change in the fair value of contingent consideration of ($0.9 million), formerly included in their own captions in the non-GAAP reconciliations, for the year ended December 31, 2024 have been reclassified to the caption "other" to conform to the current period presentation. System implementation expense was immaterial and there was no change in the fair of contingent consideration for the three months ended March 31, 2025. (4) Net debt was calculated as the total outstanding principal on the Company's debt less cash and cash equivalents. (5) Net leverage was calculated by dividing net debt as of March 31, 2025 and December 31, 2024 by adjusted EBITDA for the last twelve months ended March 31, 2025 and year ended December 31, 2024, respectively. (6) The non-GAAP effective tax rates for the three months ended March 31, 2025 and 2024 were 25.5% and 24.4%, respectively. (7) Weighted average diluted shares outstanding for the three months ended March 31, 2025 and 2024 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities). Amneal Pharmaceuticals, Inc. Affordable Medicines Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 414,708 $ — $ 414,708 $ 391,294 $ — $ 391,294 Cost of goods sold (2) 242,633 (10,875 ) 231,758 239,922 (12,268 ) 227,654 Gross profit 172,075 10,875 182,950 151,372 12,268 163,640 Gross margin % 41.5 % 44.1 % 38.7 % 41.8 % Selling, general and administrative (3) 33,715 (1,816 ) 31,899 33,085 (1,729 ) 31,356 Research and development (4) 30,980 (689 ) 30,291 34,371 (655 ) 33,716 Intellectual property legal development expenses 1,713 — 1,713 960 — 960 Charges related to legal matters, net (5) — — — 94,359 (94,359 ) — Other operating income (5,122 ) — (5,122 ) — — — Operating income (loss) $ 110,789 $ 13,380 $ 124,169 $ (11,403 ) $ 109,011 $ 97,608 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended March 31, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($0.9 million in each period), amortization expense ($9.9 million and $10.4 million), and asset impairment charges ($0.1 million and $1.0 million). (3) Adjustments for the three months ended March 31, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($1.3 million in each period) and site closure costs ($0.5 million and $0.4 million). (4) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense. (5) Adjustment for the three months ended March 31, 2024 was primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. Amneal Pharmaceuticals, Inc. Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (unaudited; $ in thousands) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 108,297 $ — $ 108,297 $ 105,234 $ — $ 105,234 Cost of goods sold (1) 53,083 (32,640 ) 20,443 44,800 (25,978 ) 18,822 Gross profit 55,214 32,640 87,854 60,434 25,978 86,412 Gross margin % 51.0 % 81.1 % 57.4 % 82.1 % Selling, general and administrative (2) 30,978 (345 ) 30,633 25,196 (271 ) 24,925 Research and development (3) 9,060 (791 ) 8,269 4,927 (284 ) 4,643 Intellectual property legal development expenses 54 — 54 24 — 24 Restructuring and other charges 130 (130 ) — 946 (946 ) — Other operating expense — — — 100 (100 ) — Operating income $ 14,992 $ 33,906 $ 48,898 $ 29,241 $ 27,579 $ 56,820 (1) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of amortization expense. (2) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense. (3) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense ($0.1 million and $0.3 million) and site closure costs ($0.7 million and none). Amneal Pharmaceuticals, Inc. AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 172,415 $ — $ 172,415 $ 162,663 $ — $ 162,663 Cost of goods sold 143,813 — 143,813 136,409 — 136,409 Gross profit 28,602 — 28,602 26,254 — 26,254 Gross margin % 16.6 % 16.6 % 16.1 % 16.1 % Selling, general and administrative (2) 15,694 (2,700 ) 12,994 14,907 (3,545 ) 11,362 Operating income $ 12,908 $ 2,700 $ 15,608 $ 11,347 $ 3,545 $ 14,892 (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of amortization expense. View source version on Contacts Contact Anthony DiMeoVP, Investor
Business Wire
02-05-2025
- Business
- Business Wire
Amneal Reports First Quarter 2025 Financial Results
BRIDGEWATER, N.J.--(BUSINESS WIRE)-- Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) ('Amneal' or the 'Company') today announced its results for the first quarter ended March 31, 2025. 'Amneal delivered another strong quarter to start 2025, with broad-based growth across all three segments driven by our team's outstanding execution. We are very pleased with the commercial uptake of CREXONT® for Parkinson's Disease and the momentum of our recently launched injectable products, which are delivering tremendous value to patients, caregivers and customers. As a leading U.S.-based biopharmaceutical company, Amneal is proud to provide millions of Americans with access to affordable and innovative treatments—and we believe we are just getting started. With our diverse portfolio, expansive footprint in the U.S. and globally, and a resilient management team, we are confident in our ability to deliver sustainable growth and value creation for our stakeholders in 2025 and beyond as we embark on our exciting next chapter of growth and success,' said Chirag and Chintu Patel, Co-Chief Executive Officers. First Quarter 2025 Results Net revenue in the first quarter of 2025 was $695 million, an increase of 5% compared to $659 million in the first quarter of 2024. Affordable Medicines net revenue increased 6% driven by strong performance of our complex product portfolio and new product launches. Specialty net revenue increased 3% driven by key branded products, including CREXONT® and UNITHROID®. AvKARE net revenue increased 6% driven by growth in the government label sales channel. Net income attributable to Amneal Pharmaceuticals, Inc. was $12 million in the first quarter of 2025 compared to a net loss of $92 million in the first quarter of 2024, reflecting higher revenue and gross profit, and a legal settlement charge of $94 million in the first quarter of 2024. Adjusted EBITDA in the first quarter of 2025 was $170 million, an increase of 12% compared to the first quarter of 2024, reflective of strong revenue performance, higher gross margin and operating expense leverage. Diluted income per share in the first quarter of 2025 was $0.04 compared to diluted loss per share of $0.30 for the first quarter of 2024, due to higher operating income and lower interest expense. Adjusted diluted earnings per share in the first quarter of 2025 was $0.21, an increase of 50%, compared to $0.14 for the first quarter of 2024. The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the 'Non-GAAP Financial Measures' section and the accompanying GAAP to non-GAAP reconciliation tables for more information. Affirming Full Year 2025 Financial Guidance The Company is affirming its previously provided full year 2025 guidance. (1) Includes 100% of adjusted EBITDA from AvKARE. See also 'Non-GAAP Financial Measures' below. (2) Accounts for 35% non-controlling interest in AvKARE. Guidance assumes approximately 330 million weighted-average diluted shares outstanding for the year ending December 31, 2025. (3) Excludes discrete items such as legal settlement payments. (4) Reflects estimated capital expenditures, net of expected contributions from an alliance partner of $20 million. Expand Amneal's 2025 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ('GAAP'). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results. Conference Call Information Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, May 2, 2025, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company's website at To access the call through a conference line, dial (833) 470-1428 (in the U.S.) with access code 170097. A replay of the conference call will be posted shortly after the call. For a list of toll-free international numbers, visit this website: About Amneal Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, NJ, is a global biopharmaceutical company. We make healthy possible through the development, manufacturing, and distribution of a diverse portfolio of over 280 pharmaceutical products, primarily within the United States. In our Affordable Medicines segment, we are expanding across a broad range of complex product categories and therapeutic areas, including injectables and biosimilars. In our Specialty segment, we have a growing portfolio of branded pharmaceuticals focused primarily on central nervous system and endocrine disorders. Through our AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit 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 regarding management's intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; statements regarding our expansion into high-growth areas and statements regarding our positioning, including our ability to drive sustainable value creation, and other non-historical statements. Words such as 'plans,' 'expects,' 'will,' 'anticipates,' 'estimates,' and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; the imposition of tariffs may adversely affect our business, results of operations and financial condition; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; the impact of global economic, political or other catastrophic events; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our class A common stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, including under Item 1A, 'Risk Factors' in the Company's most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. Non-GAAP Financial Measures This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating cash flow and net leverage, which are intended as supplemental measures of the Company's performance that are not required by or presented in accordance with GAAP. Adjusted diluted EPS reflects diluted earnings per share based on adjusted net income (loss), which is net income (loss) adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision for income taxes, (iii) amortization, (iv) stock-based compensation expense, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) charges related to certain legal matters, including interest, net, (viii) asset impairment charges, (ix) increase in tax receivable agreement liability, (x) other and (xi) net income attributable to non-controlling interests, and (B) include non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three months ended March 31, 2025 and 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock (inclusive of the effect of dilutive securities). EBITDA reflects net income (loss) adjusted to exclude interest expense, net, provision for income taxes and depreciation and amortization. Adjusted EBITDA reflects net income (loss) adjusted to exclude (i) interest expense, net, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) acquisition, site closure, and idle facility expenses, (vi) restructuring and other charges, (vii) charges related to legal matters, net, (viii) asset impairment charges, (ix) foreign exchange (gain) loss, (x) increase in tax receivable agreement liability, and (xi) other. Adjusted operating cash flow reflects cash flow from operations excluding discrete items such as legal settlement payments. Net leverage is calculated as net debt (total outstanding principal on the Company's debt, less cash and cash equivalents), divided by adjusted EBITDA for the year or trailing twelve months then ended. Management uses these non-GAAP measures internally to evaluate and manage the Company's operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company's board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company's financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company's financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management. These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company's GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company's business. A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below. Amneal Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (unaudited; $ in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 59,187 $ 110,552 Restricted cash 6,583 7,868 Trade accounts receivable, net 754,236 775,731 Inventories 601,433 612,454 Prepaid expenses and other current assets 88,524 80,717 Related party receivables 487 484 Total current assets 1,510,450 1,587,806 Property, plant and equipment, net 427,231 424,908 Goodwill 597,497 597,436 Intangible assets, net 689,136 732,377 Operating lease right-of-use assets 29,103 31,388 Operating lease right-of-use assets - related party 10,447 10,964 Financing lease right-of-use assets 55,967 56,433 Other assets 45,418 60,133 Total assets $ 3,365,249 $ 3,501,445 Liabilities and Stockholders' Deficiency Current liabilities: Accounts payable and accrued expenses $ 628,572 $ 735,450 Current portion of liabilities for legal matters 43,503 31,755 Revolving credit facility 290,000 100,000 Current portion of long-term debt, net 31,790 224,213 Current portion of operating lease liabilities 8,986 9,435 Current portion of operating lease liabilities - related party 3,449 3,396 Current portion of financing lease liabilities 3,319 3,211 Related party payables - short term 66,205 22,311 Total current liabilities 1,075,824 1,129,771 Long-term debt, net 2,153,979 2,161,790 Operating lease liabilities 22,854 24,814 Operating lease liabilities - related party 8,520 9,391 Financing lease liabilities 56,604 56,889 Related party payables - long term 10,687 50,900 Liabilities for legal matters - long term 72,979 85,479 Other long-term liabilities 23,191 26,949 Total long-term liabilities 2,348,814 2,416,212 Redeemable non-controlling interests 72,611 64,974 Total stockholders' deficiency (132,000 ) (109,512 ) Total liabilities and stockholders' deficiency $ 3,365,249 $ 3,501,445 Expand Amneal Pharmaceuticals, Inc. Consolidated Statements of Cash Flows (unaudited; $ in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ 24,618 $ (81,678 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 60,159 55,528 Unrealized foreign currency (gain) loss (3,596 ) 1,511 Amortization of debt issuance costs and discount 6,811 6,803 Reclassification of cash flow hedge (6,444 ) (6,515 ) Intangible asset impairment charges — 920 Stock-based compensation 7,258 6,722 Inventory provision 23,669 22,923 Other operating charges and credits, net 1,313 1,350 Changes in assets and liabilities: Trade accounts receivable, net 21,148 (55,173 ) Inventories (13,263 ) (12,200 ) Prepaid expenses, other current assets and other assets (513 ) (11,708 ) Related party receivables (2 ) (562 ) Accounts payable, accrued expenses and other liabilities (112,626 ) 62,174 Related party payables (1,124 ) 5,495 Net cash provided by (used in) operating activities 7,408 (4,410 ) Cash flows from investing activities: Purchases of property, plant and equipment (13,162 ) (9,198 ) Acquisition of intangible assets (4,200 ) (9,700 ) Deposits for future acquisition of property, plant and equipment (960 ) (862 ) Proceeds from sale of property, plant and equipment 524 — Net cash used in investing activities (17,798 ) (19,760 ) Cash flows from financing activities: Payments of principal on debt, revolving credit facilities, financing leases and other (235,528 ) (63,377 ) Borrowings on revolving credit facilities 218,000 48,000 Proceeds from exercise of stock options 69 28 Employee payroll tax withholding on restricted stock unit and performance stock unit vesting (21,639 ) (7,212 ) Tax distributions to non-controlling interests (68 ) (594 ) Net cash used in financing activities (39,166 ) (23,155 ) Effect of foreign exchange rate on cash (470 ) (165 ) Net decrease in cash, cash equivalents, and restricted cash (50,026 ) (47,490 ) Cash, cash equivalents, and restricted cash - beginning of period 118,420 99,107 Cash, cash equivalents, and restricted cash - end of period $ 68,394 $ 51,617 Cash and cash equivalents - end of period $ 59,187 $ 46,520 Restricted cash - end of period 6,583 5,097 Long-term restricted cash included in other assets - end of period 2,624 — Cash, cash equivalents, and restricted cash - end of period $ 68,394 $ 51,617 Expand Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Three Months Ended March 31, Year Ended December 31, 2025 2024 2024 Net income (loss) $ 24,618 $ (81,678 ) $ (73,876 ) Adjusted to add: Interest expense, net 56,939 65,703 258,595 Provision for income taxes 12,868 6,156 18,863 Depreciation and amortization 60,159 55,528 236,191 EBITDA (Non-GAAP) $ 154,584 $ 45,709 $ 439,773 Adjusted to add (deduct): Stock-based compensation expense 7,128 6,506 27,552 Acquisition, site closure, and idle facility expenses (1) 1,241 444 2,112 Restructuring and other charges 571 1,470 2,265 Charges related to legal matters, net (2) — 94,359 96,692 Asset impairment charges 68 1,015 1,372 Foreign exchange (gain) loss (4,247 ) 1,197 6,846 Increase in tax receivable agreement liability 10,687 1,948 50,680 Other (3) (54 ) (297 ) 150 Adjusted EBITDA (Non-GAAP) $ 169,978 $ 152,351 $ 627,442 Expand Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Calculation of Net Leverage March 31, 2025 December 31, 2024 Term Loan Due 2025 $ — $ 191,979 Term Loan Due 2028 2,278,158 2,292,856 Amended New Revolving Credit Facility 290,000 100,000 Gross debt $ 2,568,158 $ 2,584,835 Less: Cash and cash equivalents 59,197 110,552 Net debt (Non-GAAP) (4) $ 2,508,961 $ 2,474,283 Adjusted EBITDA (Non-GAAP) Year ended December 31, 2024 $ 627,442 Less: Three months ended March 31, 2024 152,351 Add: Three months ended March 31, 2025 169,978 Last twelve months ended March 31, 2025 $ 645,069 Net leverage (Non-GAAP) (5) 3.9x 3.9x Expand Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited; $ in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Net income (loss) $ 24,618 $ (81,678 ) Adjusted to add (deduct): Non-cash interest 334 82 GAAP provision for income taxes 12,868 6,156 Amortization 44,274 38,671 Stock-based compensation expense 7,128 6,506 Acquisition, site closure expenses, and idle facility expenses (1) 1,227 444 Restructuring and other charges 571 1,453 Charges related to legal matters, including interest, net (2) — 94,486 Asset impairment charges 68 1,015 Increase in tax receivable agreement liability 10,687 1,948 Other (3) (44 ) (297 ) Provision for income taxes (6) (22,765 ) (14,341 ) Net income attributable to non-controlling interests (12,423 ) (9,965 ) Adjusted net income (Non-GAAP) $ 66,543 $ 44,480 Weighted average diluted shares outstanding (Non-GAAP) (7) 323,961 316,559 Adjusted diluted earnings per share (Non-GAAP) $ 0.21 $ 0.14 Expand Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited) Explanations for Non-GAAP Reconciliations (1) Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2025 primarily included costs related to a planned facility closure and rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three months ended March 31, 2024 and year ended December 31, 2024 primarily included rent for vacated properties. (2) For the three months ended March 31, 2024 and year ended December 31, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. (3) System implementation expense of $0.9 million and change in the fair value of contingent consideration of $0.1 million, formerly included in their own captions in the non-GAAP reconciliations, for the three months ended March 31, 2024 have been reclassified to the caption 'other' to conform to the current period presentation. System implementation expense of $2.4 million and change in the fair value of contingent consideration of ($0.9 million), formerly included in their own captions in the non-GAAP reconciliations, for the year ended December 31, 2024 have been reclassified to the caption 'other' to conform to the current period presentation. System implementation expense was immaterial and there was no change in the fair of contingent consideration for the three months ended March 31, 2025. (4) Net debt was calculated as the total outstanding principal on the Company's debt less cash and cash equivalents. (5) Net leverage was calculated by dividing net debt as of March 31, 2025 and December 31, 2024 by adjusted EBITDA for the last twelve months ended March 31, 2025 and year ended December 31, 2024, respectively. (6) The non-GAAP effective tax rates for the three months ended March 31, 2025 and 2024 were 25.5% and 24.4%, respectively. (7) Weighted average diluted shares outstanding for the three months ended March 31, 2025 and 2024 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities). Expand (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended March 31, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($0.9 million in each period), amortization expense ($9.9 million and $10.4 million), and asset impairment charges ($0.1 million and $1.0 million). (3) Adjustments for the three months ended March 31, 2025 and 2024, respectively, were comprised of stock-based compensation expense ($1.3 million in each period) and site closure costs ($0.5 million and $0.4 million). (4) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense. (5) Adjustment for the three months ended March 31, 2024 was primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. Expand (1) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of amortization expense. (2) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense. (3) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of stock-based compensation expense ($0.1 million and $0.3 million) and site closure costs ($0.7 million and none). Expand (1) Revenue, cost of goods sold, and gross profit from the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended March 31, 2025 and 2024 were comprised of amortization expense. Expand
Associated Press
28-02-2025
- Business
- Associated Press
Amneal Reports Fourth Quarter and Full Year 2024 Financial Results
BRIDGEWATER, N.J.--(BUSINESS WIRE)--Feb 28, 2025-- Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX) ('Amneal' or the 'Company') today announced its results for the fourth quarter and full year ended December 31, 2024. 'Amneal's continued success in 2024 demonstrates our ability to drive sustainable growth through disciplined execution, continuous innovation, and strategic capital allocation. All three business segments achieved double-digit revenue growth, we successfully launched CREXONT®, and we reduced net leverage to 3.9x, which is one year ahead of our commitment to be below 4x. In 2025 and beyond, we are entering a new phase of growth by further expanding in high-growth areas such as Specialty, Biosimilars, and GLP-1 therapies. As a growing and diversified biopharmaceutical company, Amneal is well positioned to deliver substantial value creation for all our stakeholders,' said Chirag and Chintu Patel, Co-Chief Executive Officers. Net revenue in the fourth quarter of 2024 was $731 million, an increase of 18% compared to $617 million in the fourth quarter of 2023. The increase was driven by Affordable Medicines (3) revenues growing 21% due to new product launches, biosimilars and multiple other complex products, AvKARE revenues growing 14% due to new product launches and Specialty revenues growing 16% driven by key branded products including CREXONT®. Net loss attributable to Amneal Pharmaceuticals, Inc. was $31 million in the fourth quarter of 2024 compared to a net loss of $99 million in the fourth quarter of 2023, which reflected the term loan refinancing in the prior year period. Adjusted EBITDA (1) in the fourth quarter of 2024 was $155 million, an increase of 9% compared to the fourth quarter of 2023, primarily due to strong revenue growth partially offset by higher spending in research and development and commercial initiatives to drive future growth. Diluted loss per share in the fourth quarter of 2024 was $0.10 compared to a loss of $0.40 for the fourth quarter of 2023, due to the aforementioned factors. Adjusted diluted EPS (1) in the fourth quarter of 2024 was $0.12 compared to $0.14 in the fourth quarter of 2023. Net revenue for the year ended December 31, 2024 was $2.79 billion, an increase of 17% compared to $2.39 billion for the year ended December 31, 2023. Each of the business segments grew revenues double-digits in 2024 driven by the success of new product launches across the segments with Affordable Medicines (3) growing 15%, AvKARE growing 25% and Specialty growing 14%. Net loss attributable to Amneal Pharmaceuticals, Inc. was $117 million for the year ended December 31, 2024 compared to a net loss of $84 million for the year ended December 31, 2023, primarily due to higher operating income offset by higher interest expense. Adjusted EBITDA (1) for the year ended December 31, 2024 was $627 million, an increase of 12% compared to the prior year, reflective of strong revenue growth and consistent adjusted gross margins, partially offset by select investments in research and development and commercial initiatives for new products to drive future growth. Diluted loss per share for the year ended December 31, 2024 was $0.38 compared to diluted loss per share of $0.48 for the year ended December 31, 2023, due to increased operating income more than offset by higher interest expense. Adjusted diluted EPS (1) in the year ended December 31, 2024 was $0.58, a decrease of 9% from $0.64 for the year ended December 31, 2023. (1) See 'Non-GAAP Financial Measures' below. (2) The Company cannot provide a reconciliation between projected adjusted EBITDA and net income (loss), the most directly comparable measure in accordance with GAAP, without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results. (3) During the fourth quarter of 2024, the Company changed the name of its Generics segment to 'Affordable Medicines' to reflect the full product offering of the segment. The Affordable Medicines segment includes retail generics, injectables, biosimilars and international net revenues. The name change did not result in any change to the composition of the Company's reportable segments and, therefore, did not result in any change to its historical results. 2025 Financial Guidance Full Year 2025 Guidance Full Year 2024 Actuals Net revenue $3.0 billion - $3.1 billion $2.79 billion Adjusted EBITDA (1) $650 million - $675 million $627 million Adjusted diluted EPS (2) $0.65 - $0.70 $0.58 Operating cash flow $255 million - $285 million $295 million Operating cash flow, excluding discrete items (3) $280 million - $310 million $348 million Capital expenditures (4) Approximately $100 million $52 million (1) Includes 100% of adjusted EBITDA from AvKARE. See also 'Non-GAAP Financial Measures' below. (2) Accounts for 35% non-controlling interest in AvKARE. Assumes weighted-average diluted shares outstanding of approximately 330 million for the year ending December 31, 2025, compared to weighted-average diluted shares outstanding of 321 million for the year ended December 31, 2024. See also 'Non-GAAP Financial Measures' below for assumptions used in the calculation of weighted-average diluted shares. (3) Excludes discrete items such as legal settlement payments. 2024 actuals exclude the final settlement payment for the Opana ER® antitrust litigation of $52 million. (4) Reflects estimated capital expenditures, net of expected contributions from an alliance partner of $20 million. Amneal's 2025 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ('GAAP'). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results. Conference Call Information Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, February 28, 2025, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company's website at To access the call through a conference line, dial (833) 470-1428 (in the U.S.) with access code 863159. A replay of the conference call will be posted shortly after the call. For a list of toll-free international numbers, visit this website: About Amneal Amneal Pharmaceuticals, Inc. (Nasdaq: AMRX), headquartered in Bridgewater, NJ, is a global biopharmaceutical company. We make healthy possible through the development, manufacturing, and distribution of a diverse portfolio of over 280 pharmaceutical products, primarily within the United States. In our Affordable Medicines segment, we are expanding across a broad range of complex product categories and therapeutic areas, including injectables and biosimilars. In our Specialty segment, we have a growing portfolio of branded pharmaceuticals focused primarily on central nervous system and endocrine disorders. Through our AvKARE segment, we are a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit 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 regarding management's intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; statements regarding our expansion into high-growth areas and statements regarding our positioning, including our ability to drive sustainable value creation, and other non-historical statements. Words such as 'plans,' 'expects,' 'will,' 'anticipates,' 'estimates,' and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; the impact of illegal distribution and sale by third parties of counterfeit versions of our products or stolen products; the impact of negative market perceptions of us and the safety and quality of our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; the imposition of tariffs may adversely affect our business, results of operations and financial condition; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents, and risks associated with artificial intelligence; the impact of a prolonged business interruption within our supply chain; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to government contracting, healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; the impact of global economic, political or other catastrophic events; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our class A common stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, including under Item 1A, 'Risk Factors' in the Company's most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof. Non-GAAP Financial Measures This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income, adjusted diluted EPS, adjusted operating cash flow and net leverage, which are intended as supplemental measures of the Company's performance that are not required by or presented in accordance with GAAP. Adjusted diluted EPS reflects diluted earnings per share based on adjusted net income, which is net loss adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision for income taxes, (iii) amortization, (iv) stock-based compensation expense, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) loss on refinancing, (viii) charges related to certain legal matters, including interest, net, (ix) asset impairment charges, (x) change in fair value of contingent consideration, (xi) increase in tax receivable agreement liability, (xii) system implementation expense, (xiii) Reorganization expenses, (xiv) other and (xv) net income attributable to non-controlling interests not associated with our Class B common stock, and (B) includes non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three months and year ended December 31, 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock (inclusive of the effect of dilutive securities). Non-GAAP adjusted diluted EPS for the three months and year ended December 31, 2023 was calculated using the weighted average diluted shares outstanding of Class A common stock (inclusive of the effect of dilutive securities) and assuming all shares of Class B common stock were converted to shares of Class A common stock as of January 1, 2023. Adjusted EBITDA reflects net loss adjusted to exclude (i) interest expense, net, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) acquisition, site closure, and idle facility expenses, (vi) restructuring and other charges, (vii) loss on refinancing (viii) charges related to legal matters, net, (ix) asset impairment charges, (x) foreign exchange loss (gain), (xi) change in fair value of contingent consideration, (xii) increase in tax receivable agreement liability, (xiii) system implementation expense, (xiv) Reorganization expense, and (xv) other. Net leverage is calculated as net debt (total outstanding principal on the Company's debt, less cash and cash equivalents), divided by adjusted EBITDA for the year or trailing twelve months then ended. Management uses these non-GAAP measures internally to evaluate and manage the Company's operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company's board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company's financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company's financial performance, results of operations, cash flows, net leverage and trends while viewing the information through the eyes of management. These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company's GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company's business. A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below. Amneal Pharmaceuticals, Inc. Consolidated Statements of Operations (unaudited; $ in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net revenue $ 730,518 $ 616,981 $ 2,793,957 $ 2,393,607 Cost of goods sold 467,645 427,154 1,773,519 1,573,042 Gross profit 262,873 189,827 1,020,438 820,565 Selling, general and administrative 128,687 109,003 476,436 429,675 Research and development 54,265 46,086 190,714 163,950 In-process research and development impairment charges — 30,800 — 30,800 Intellectual property legal development expenses 1,852 478 5,845 3,828 Restructuring and other charges 493 114 2,355 1,749 Change in fair value of contingent consideration — (13,710 ) (930 ) (14,497 ) Charges related to legal matters, net 1,783 2,863 96,692 1,824 Other operating income — — — (1,138 ) Operating income 75,793 14,193 249,326 204,374 Other (expense) income: Interest expense, net (61,662 ) (59,548 ) (258,595 ) (210,629 ) Foreign exchange (loss) gain, net (7,661 ) 2,288 (6,846 ) 1,671 Loss on refinancing — (40,805 ) — (40,805 ) Increase in tax receivable agreement liability (23,961 ) (1,217 ) (50,680 ) (3,124 ) Other income, net 2,172 1,628 11,782 8,243 Total other expense, net (91,112 ) (97,654 ) (304,339 ) (244,644 ) Loss before income taxes (15,319 ) (83,461 ) (55,013 ) (40,270 ) Provision for income taxes 5,423 9,883 18,863 8,452 Net loss (20,742 ) (93,344 ) (73,876 ) (48,722 ) Less: Net income attributable to non-controlling interests (10,339 ) (5,305 ) (43,010 ) (35,271 ) Net loss attributable to Amneal Pharmaceuticals, Inc. $ (31,081 ) $ (98,649 ) $ (116,886 ) $ (83,993 ) Net loss per share attributable to Amneal Pharmaceuticals, Inc.'s Class A common stockholders: Basic and diluted $ (0.10 ) $ (0.40 ) $ (0.38 ) $ (0.48 ) Weighted-average common shares outstanding (1): Basic and diluted 309,850 243,711 308,978 176,136 (1) On November 7, 2023, the Company implemented a plan to reorganize and simplify its corporate structure by eliminating its umbrella partnership-C-corporation structure and converting to a more traditional C-corporation structure, whereby all stockholders hold their voting and economic interests directly through the public company (the 'Reorganization'). Following the implementation of the Reorganization, all outstanding shares of Old PubCo Class A Common Stock and Old PubCo Class B Common Stock were exchanged for an equivalent number of shares of Class A common stock of the Company. Refer to Note 1. Nature of Operations and Note 8. (Loss) Earnings per Share to the consolidated financial statements in the Company's 2023 Annual Report on Form 10-K for additional information. Amneal Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (unaudited; $ in thousands) December 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 110,552 $ 91,542 Restricted cash 7,868 7,565 Trade accounts receivable, net 775,731 613,732 Inventories 612,454 581,384 Prepaid expenses and other current assets 80,717 82,685 Related party receivables 484 955 Total current assets 1,587,806 1,377,863 Property, plant and equipment, net 424,908 447,574 Goodwill 597,436 598,629 Intangible assets, net 732,377 890,423 Operating lease right-of-use assets 31,388 30,329 Operating lease right-of-use assets - related party 10,964 12,954 Financing lease right-of-use assets 56,433 59,280 Other assets 60,133 55,517 Total assets $ 3,501,445 $ 3,472,569 Liabilities and Stockholders' (Deficiency) Equity Current liabilities: Accounts payable and accrued expenses $ 735,450 $ 534,662 Current portion of liabilities for legal matters 31,755 76,988 Revolving credit facility 100,000 179,000 Current portion of long-term debt, net 224,213 34,125 Current portion of operating lease liabilities 9,435 9,207 Current portion of operating lease liabilities - related party 3,396 2,825 Current portion of financing lease liabilities 3,211 2,467 Related party payables - short term 22,311 7,321 Total current liabilities 1,129,771 846,595 Long-term debt, net 2,161,790 2,386,004 Note payable - related party — 41,447 Operating lease liabilities 24,814 24,095 Operating lease liabilities - related party 9,391 12,787 Financing lease liabilities 56,889 58,566 Related party payable - long term 50,900 11,776 Liabilities for legal matters - long term 85,479 316 Other long-term liabilities 26,949 29,679 Total long-term liabilities 2,416,212 2,564,670 Redeemable non-controlling interests 64,974 41,293 Total stockholders' (deficiency) equity (109,512 ) 20,011 Total liabilities and stockholders' (deficiency) equity $ 3,501,445 $ 3,472,569 Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net loss $ (20,742 ) $ (93,344 ) $ (73,876 ) $ (48,722 ) Adjusted to add (deduct): Interest expense, net 61,662 59,548 258,595 210,629 Provision for income taxes 5,423 9,883 18,863 8,452 Depreciation and amortization 66,130 56,933 236,191 229,400 EBITDA (Non-GAAP) $ 112,473 $ 33,020 $ 439,773 $ 399,759 Adjusted to add (deduct): Stock-based compensation expense 7,209 5,974 27,552 26,822 Acquisition, site closure, and idle facility expenses (1) 538 1,186 2,112 7,017 Restructuring and other charges 493 114 2,265 1,650 Loss on refinancing — 40,805 — 40,805 Charges related to legal matters, net (2) 1,783 2,863 96,692 11,824 Asset impairment charges (3) 176 67,228 1,372 70,107 Foreign exchange loss (gain) 7,661 (2,288 ) 6,846 (1,671 ) Change in fair value of contingent consideration — (13,710 ) (930 ) (14,497 ) Increase in tax receivable agreement liability 23,961 1,217 50,680 3,124 System implementation expense (4) 337 934 2,366 5,363 Reorganization expenses (5) — 4,630 — 5,927 Other 626 175 (1,286 ) 1,984 Adjusted EBITDA (Non-GAAP) $ 155,257 $ 142,148 $ 627,442 $ 558,214 Calculation of Net Leverage December 31, 2024 December 31, 2023 Term Loan Due 2025 $ 191,979 $ 191,979 Term Loan Due 2028 2,292,856 2,351,647 Amended New Revolving Credit Facility 100,000 179,000 Sellers Notes — 44,200 Gross debt $ 2,584,835 $ 2,766,826 Less: Cash and cash equivalents 110,552 91,542 Net debt (Non-GAAP) (6) $ 2,474,283 $ 2,675,284 Adjusted EBITDA (Non-GAAP) for the year ended $ 627,442 $ 558,214 Net leverage (Non-GAAP) (7) 3.9x 4.8x Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited; $ in thousands, except per share amounts) Reconciliation of Net Loss to Adjusted Net Income and Calculation of Adjusted Diluted Earnings per Share Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net loss $ (20,742 ) $ (93,344 ) $ (73,876 ) $ (48,722 ) Adjusted to add (deduct): Non-cash interest 183 1,016 1,735 7,017 GAAP provision for income taxes 5,423 9,883 18,863 8,452 Amortization 49,037 39,208 168,518 157,219 Stock-based compensation expense 7,209 5,974 27,552 26,822 Acquisition, site closure expenses, and idle facility expenses (1) 538 1,186 2,112 7,017 Restructuring and other charges 493 114 2,249 1,650 Loss on refinancing — 40,805 — 40,805 Charges related to legal matters, including interest, net (2) 1,783 3,580 96,819 14,784 Asset impairment charges (3) 176 67,143 1,372 70,015 Change in fair value of contingent consideration — (13,710 ) (930 ) (14,497 ) Increase in tax receivable agreement liability 23,961 1,217 50,680 3,124 System implementation expense (4) 337 934 2,366 5,363 Reorganization expenses (5) — 4,630 — 5,927 Other 627 323 (1,286 ) 2,466 Provision for income taxes (8) (18,262 ) (17,563 ) (66,278 ) (60,014 ) Net income attributable to non-controlling interests not associated with our class B common stock (10,339 ) (7,831 ) (43,010 ) (29,873 ) Adjusted net income (Non-GAAP) $ 40,424 $ 43,565 $ 186,886 $ 197,555 Weighted average diluted shares outstanding (Non-GAAP) (9) 324,099 314,986 320,645 310,234 Adjusted diluted earnings per share (Non-GAAP) $ 0.12 $ 0.14 $ 0.58 $ 0.64 Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited) Explanations for Non-GAAP Reconciliations (1) Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2024 primarily included rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three months and year ended December 31, 2023 primarily included site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility. (2) For the year ended December 31, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. For the three months ended December 31, 2023, charges related to legal matters, net were primarily comprised of a settlement of commercial antitrust litigation. For the year ended December 31, 2023, charges related to legal matters, net were primarily comprised of (i) charges associated with civil prescription opioid litigation, (ii) a settlement of a customer claim, (iii) a settlement of commercial antitrust litigation, and (iv) a settlement of a stockholder derivative lawsuit. (3) Asset impairment charges for the three months and year ended December 31, 2023 were primarily associated with the write-offs of intangibles assets. (4) System implementation expense for the three months and year ended December 31, 2024 and 2023 was primarily for the implementation of software to further integrate our acquired businesses. (5) For the three months and year ended December 31, 2023, Reorganization expenses were comprised of professional fees. (6) Net debt was calculated as the total outstanding principal on the Company's debt less cash and cash equivalents. (7) Net leverage was calculated by dividing net debt as of December 31, 2024 and 2023 by adjusted EBITDA for the years ended December 31, 2024 and 2023, respectively. (8) The non-GAAP effective tax rates for the three months and year ended December 31, 2024 were 31.1% and 26.2%, respectively. The non-GAAP effective tax rates for the three months and year ended December 31, 2023 were 28.7% and 23.3%, respectively. (9) Weighted average diluted shares outstanding for the three months and year ended December 31, 2024 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities). Weighted average diluted shares outstanding for the three months and year ended December 31, 2023 consisted of fully diluted Class A common stock (inclusive of the effect of dilutive securities) and Class B common stock, as if all shares of Class B common stock were converted to Class A common stock as of January 1, 2023. Amneal Pharmaceuticals, Inc. Affordable Medicines Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Three Months Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 439,296 $ — $ 439,296 $ 363,037 $ — $ 363,037 Gross profit 178,100 11,595 189,695 141,176 14,167 155,343 Gross margin % 40.5 % 43.2 % 38.9 % 42.8 % Selling, general and administrative (3) 33,915 (1,909 ) 32,006 30,734 (1,849 ) 28,885 Research and development (4) 48,598 (674 ) 47,924 33,663 (654 ) 33,009 In-process research and development impairment charges — — — 26,500 (26,500 ) — Intellectual property legal development expenses 1,907 — 1,907 468 — 468 Charges related to legal matters, net 1,783 (1,783 ) — 2,863 (2,863 ) — Operating income $ 91,897 $ 15,961 $ 107,858 $ 46,948 $ 46,033 $ 92,981 (1) Operating results for the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended December 31, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($0.9 million and $0.6 million), amortization expense ($10.6 million and $10.7 million), site closure and idle facility expenses (none and $0.7 million), asset impairment charges ($0.1 million and $2.3 million), and other (none and $(0.1) million). (3) Adjustments for the three months ended December 31, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($1.4 million and $1.2 million) and site closure costs ($0.5 million and $0.6 million). (4) Adjustments for the three months ended December 31, 2024 and 2023 were comprised of stock-based compensation expense. Amneal Pharmaceuticals, Inc. Affordable Medicines Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 1,685,263 $ — $ 1,685,263 $ 1,471,401 $ — $ 1,471,401 Cost of goods sold (2) 1,011,363 (46,718 ) 964,645 913,869 (56,450 ) 857,419 Gross profit 673,900 46,718 720,618 557,532 56,450 613,982 Gross margin % 40.0 % 42.8 % 37.9 % 41.7 % Selling, general and administrative (3) 129,578 (7,160 ) 122,418 119,912 (7,411 ) 112,501 Research and development (4) 171,771 (2,587 ) 169,184 132,233 (2,555 ) 129,678 In-process research and development impairment charges — — — 26,500 (26,500 ) — Intellectual property legal development expenses 5,685 — 5,685 3,708 — 3,708 Restructuring and other charges 70 (70 ) — 211 (112 ) 99 Charges (credit) related to legal matters, net (5) 96,692 (96,692 ) — (64 ) (9,936 ) (10,000 ) Other operating income — — — (1,138 ) — (1,138 ) Operating income $ 270,104 $ 153,227 $ 423,331 $ 276,170 $ 102,964 $ 379,134 (1) Operating results for the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the years ended December 31, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($3.6 million and $3.5 million), amortization expense ($41.8 million and $42.8 million), site closure and idle facility expenses (none and $4.9 million), asset impairment charges ($1.3 million and $5.2 million), and other (none million and $0.1 million). (3) Adjustments for the years ended December 31, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($5.1 million, and $5.2 million) and site closure expenses ($2.1 million and $2.2 million). (4) Adjustments for the years ended December 31, 2024 and 2023 were comprised of stock-based compensation expense. (5) Adjustment for the year ended December 31, 2024 was primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States. Amneal Pharmaceuticals, Inc. Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (unaudited; $ in thousands) Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 120,836 $ — $ 120,836 $ 104,481 $ — $ 104,481 Cost of goods sold (1) 59,537 (36,224 ) 23,313 79,023 (59,940 ) 19,083 Gross profit 61,299 36,224 97,523 25,458 59,940 85,398 Gross margin % 50.7 % 80.7 % 24.4 % 81.7 % Selling, general and administrative (2) 30,129 (293 ) 29,836 20,243 (39 ) 20,204 Research and development (2) 5,667 (257 ) 5,410 12,423 (451 ) 11,972 In-process research and development impairment charges — — — 4,300 (4,300 ) — Intellectual property legal development expenses (55 ) — (55 ) 10 — 10 Restructuring and other charges 493 (493 ) — 92 (92 ) — Change in fair value of contingent consideration (3) — — — (13,710 ) 13,710 — Operating income $ 25,065 $ 37,267 $ 62,332 $ 2,100 $ 51,112 $ 53,212 (1) Adjustments for the three months ended December 31, 2024 and 2023, respectively, were comprised of amortization expense ($36.2 million and $25.8 million) and asset impairment charges (none and $34.1 million). (2) Adjustments for the three months ended December 31, 2024 and 2023 were comprised of stock-based compensation expense. (3) Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC. Amneal Pharmaceuticals, Inc. Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (unaudited; $ in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 445,749 $ — $ 445,749 $ 390,457 $ — $ 390,457 Cost of goods sold (1) 202,821 (117,573 ) 85,248 214,277 (137,811 ) 76,466 Gross profit 242,928 117,573 360,501 176,180 137,811 313,991 Gross margin % 54.5 % 80.9 % 45.1 % 80.4 % Selling, general and administrative (2) 109,658 (1,048 ) 108,610 88,137 (688 ) 87,449 Research and development (2) 18,943 (1,058 ) 17,885 31,717 (1,785 ) 29,932 In-process research and development impairment charges — — — 4,300 (4,300 ) — Intellectual property legal development expenses 160 — 160 120 — 120 Restructuring and other charges 1,517 (1,517 ) — 1,105 (1,105 ) — Change in fair value of contingent consideration (3) (930 ) 930 — (14,497 ) 14,497 — Operating income $ 113,580 $ 120,266 $ 233,846 $ 65,298 $ 131,192 $ 196,490 (1) Adjustments for the years ended December 31, 2024 and 2023, respectively, were comprised of amortization expense ($117.6 million and $103.7 million) and asset impairment charges (none and $34.1 million). (2) Adjustments for the years ended December 31, 2024 and 2023 were comprised of stock-based compensation expense. (3) Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC. Amneal Pharmaceuticals, Inc. AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 170,386 $ — $ 170,386 $ 149,463 $ — $ 149,463 Cost of goods sold 146,912 — 146,912 126,270 — 126,270 Gross profit 23,474 — 23,474 23,193 — 23,193 Gross margin % 13.8 % 13.8 % 15.5 % 15.5 % Selling, general and administrative (2) 16,015 (3,546 ) 12,469 14,073 (3,764 ) 10,309 Operating income $ 7,459 $ 3,546 $ 11,005 $ 9,120 $ 3,764 $ 12,884 (1) Operating results for the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the three months ended December 31, 2024 and 2023, respectively, were comprised of amortization expense ($3.6 million and $4.2 million) and other (none and $(0.4) million). Amneal Pharmaceuticals, Inc. AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results (1) (unaudited; $ in thousands) Year Ended December 31, 2024 Year Ended December 31, 2023 As Reported Adjustments Non-GAAP As Reported Adjustments Non-GAAP Net revenue $ 662,945 $ — $ 662,945 $ 531,749 $ — $ 531,749 Cost of goods sold 559,335 — 559,335 444,896 — 444,896 Gross profit 103,610 — 103,610 86,853 — 86,853 Gross margin % 15.6 % 15.6 % 16.3 % 16.3 % Selling, general and administrative (2) 60,709 (14,182 ) 46,527 55,341 (15,373 ) 39,968 Operating income $ 42,901 $ 14,182 $ 57,083 $ 31,512 $ 15,373 $ 46,885 (1) Operating results for the sale of Amneal products by AvKARE were included in our Affordable Medicines segment. (2) Adjustments for the years ended December 31, 2024 and 2023, respectively, were comprised of amortization ($14.2 million and $16.8 million) and other (none and $(1.4) million). View source version on CONTACT: Contact Anthony DiMeo VP, Investor Relations [email protected] KEYWORD: NEW JERSEY UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL HEALTH SOURCE: Amneal Pharmaceuticals, Inc. Copyright Business Wire 2025. PUB: 02/28/2025 06:00 AM/DISC: 02/28/2025 06:00 AM
