Amneal Announces Q1 2024 Financial Results

Amneal Pharmaceuticals, Inc., a global pharmaceutical company based in Bridgewater, NJ, has reported its financial outcomes for the first quarter ending March 31, 2024. The company, trading under Nasdaq: AMRX, announced impressive financial achievements and operational milestones.

For the first quarter of 2024, Amneal recorded net revenues of $659 million, marking an 18% increase from $558 million in the same period last year. This growth was driven by robust performance across its three major business segments: Generics, Specialty, and AvKARE. Generics revenue rose by 14%, buoyed by strong sales in complex generics, oncology biosimilars, and newly launched products. Specialty revenues saw a 15% increase, primarily due to the success of its promoted products in Neurology and Endocrinology. Additionally, AvKARE revenues surged by 33%, supported by the expansion of its product channels and new product offerings.

Despite the revenue growth, the company faced a net loss of $92 million in Q1 2024, compared to a net loss of $7 million in Q1 2023. This significant loss was attributed to a pre-tax charge of $94 million related to a proposed nationwide opioids settlement. Adjusted EBITDA for the quarter was $152 million, representing a 31% increase from the previous year, reflecting strong revenue performance and higher gross margins. The diluted loss per share was $0.30, up from $0.05 in the prior year, while the adjusted diluted earnings per share increased slightly to $0.14 from $0.12.

The company also highlighted its settlement in principle on the nationwide opioids cases, involving states, counties, municipalities, and Native American Tribal Nations. The settlement, valued at $92.5 million in cash and $180 million in naloxone nasal spray, aims to resolve nearly all litigation related to opioids. The settlement is structured to be paid over ten years, with an option for the parties to receive 25% of the product value in cash during the last four years of the term.

Moreover, Amneal reaffirmed its full-year 2024 guidance, projecting net revenue between $2.55 billion and $2.65 billion, adjusted EBITDA of $580 million to $620 million, and adjusted diluted EPS of $0.53 to $0.63. The company anticipates operating cash flow between $260 million and $300 million and capital expenditures of $60 million to $70 million.

Amneal's co-CEOs, Chirag and Chintu Patel, expressed optimism about the company's trajectory, emphasizing its role in meeting the rising demand for pharmaceuticals in the U.S. They highlighted Amneal's capacity to provide high-quality, affordable medications amid chronic supply shortages, thereby creating value for stakeholders.

The company noted its diverse portfolio of over 280 generic and specialty pharmaceuticals. In its Generics segment, Amneal is expanding in complex product categories like injectables and biosimilars. The Specialty segment focuses on central nervous system and endocrine disorders, while the AvKARE segment distributes pharmaceuticals to federal government, retail, and institutional markets.

Amneal's strategic plan continues to leverage its comprehensive operations, extensive product portfolio, and focused R&D efforts to drive sustainable growth and address unmet medical needs. This financial and operational performance underscores Amneal's strong market position and its commitment to enhancing healthcare access and quality.