AMRX - Earnings call transcript Q1 2019 | Amneal Pharmaceuticals, Inc.

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Operator

Good morning, and welcome to the Amneal Pharmaceuticals First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. At this time, I would like to turn the conference over to Mark Donohue, Vice President of Investor Relations and Communications. ahead. go Please

Mark Donohue

as Good website XXXX Allison. a Welcome Amneal’s are as to release presented will Thank this www.amneal.com. on call. morning, Earlier quarter call well release press earnings our on issued slides this first that reporting be our you, available earnings, everyone. the at morning, press we

projections differ including but are Amneal not other are limited any except depending intent and required to or results today’s expectations Actual Securities expressly Amneal affecting Commission, disclaims Please call financial consent. Exchange periodic information Inc. on call, Amneal of important call. It’s prospects which will trends of you note the law. and management results, copyrighted are a our these I’d forward-looking after of cannot that date. We in a website the replay forward-looking Amneal conducting current materially public or update factors that non-historical may today’s remind projections written to live our the business. number as this existing of from such detailed on make by future be A of webcast other or factors and course events note performance and its material the These filings Amneal’s and also rebroadcasted conclusion. will future be to remarks forward-looking reflect company. is Company’s or of current Pharmaceuticals, of facts available that this as during anticipated and with also expressed about like estimated to statements regarding of perspective our statements the the or statements without obligation

period ending XX, XX-K for Form XXXX. the December

and the reconciliation financial measures GAAP of available the the facilitates includes today of manage in GAAP A disclose measures non-GAAP trends. to financial to investors and provide to press operations, both this understand its in of non-GAAP management and financial financial SEC. is Our believes performance, release and inclusion in analysis defined meaningful by Further, uses business. evaluate presentation. better of measures measures today’s supplementary the information and internally Company’s to appendix certain the non-GAAP as evaluating Management operations by morning’s Company’s discussion results measures non-GAAP

On this Officer. the Financial are our morning Executive Todd Stewart, and Branning, call Chief Chief Rob Officer; our President

remarks, Q&A session. Commercial prepared Also the hold Following Chairman; Labor our is Q&A Bisaro, President Vice Joe Boyer, President, Corporate Specialty Senior Executive Andy David will a available Commercial; and and Buchen, and Todisco, call Paul on Vice of our Chief we for Executive Operations; Secretary. Officer

our highlights. So of begin will review quarter with first for our some agenda, Rob

forward. and Todd that, and results, Following over that, the going our review guidance call will our XXXX With Rob strategic reaffirm review priorities financial after turn which I’ll Rob. to will our conclude also for

Rob Stewart

the Thank begin for same good Please period the to us integral year, our highlights today XXXX few long-term drive to across on to business review you, from Amneal’s a to Mark. X with began results. morning, everyone, Good quarter to joining Slide and turn quarter. a thank with first continued We strategic we first our last key and over is quarter through growth. outlined on revenue grew the as objectives executed EBITDA and priorities you follow

products. dividends transition and XX in the in of milestone we of up us to approval that launches The immediate dosage and quarter remain – XXXX. We achieve XX new sector. industry-leading and two than time generic and challenging our approvals, This XX First, delivering the included new goal launch and we of patch, Rivastigmine valuable important first generic had the launch intact, XXXX six our approvals portfolio for approximately another continued stated key paid into more diversification more to our launching positioned met year-over-year forms, keep engine helped for more successful launch transdermal products company. XX% complex Levothyroxine the our tentative a growth our also generic to product during

Specialty year-over-year Second, key with and Rytary momentum promoted our solid we our Unithroid growth and both growth franchise products in maintain sequentially. prescription delivering

on We franchises. are marketing in both to efforts sales investing and additional growth from of accelerate we these build continued the and expect

commercial our our position strength. to business optimize Third, focus core We this we U.S. to of took earlier divest operational our the continued the in strengthening to during strategic on resources in Germany UK the and areas month, on growing our us to quarter our our simplify concentrate and business focus in action and footprint allowing market.

the tasks are capture the and synergy all continuing across to with now major impacts we realize organization. the integration Amneal of Additionally, complete,

captured have the now a $XXX $XXX faster savings since than track more in million planned. cost at more remain and on we had to We million originally than cost a close synergies than in pace achieve

senior team key several who play the position the roles with to management sustainable for optimizing during business Finally, growth. appointment also long-term our important we quarter experienced leaders our and Amneal will strengthened of

joining Chief Corporate as Pradeep and Bhadauria, Secretary; we Officer David have as Chief Legal Todd CFO, on addition Officer. and In our to Scientific brought team Buchen, as

share. of per the the quarter $X.XX diluted with $XX of based generic combined year Rytary generic from Turning approximately X% of and synergy the million captured flat of loss now growth net business and segment prior EBITDA adjusted more Unithroid than interest to we expense and to as tax had performance net growth EPS XX%, financial a exclusivity due revenue Slide was growth erosion Albenza. X, of of primarily good incremental of perspective, offset adjusted with a $X.XX quarter Combined of diluted and or

not the expense impact XXXX use impacts quarter higher As finance XXXX. combination the a of May closed interest include with of reminder, the first does of to in the that

momentum QX, launch revenue review more grew our of financial we than transdermal success Generic benefited launches, to offset in to Starting diversify portfolio approval competition pipeline base products, transdermal our marks portfolio we the our our from value, return launched X, details the including covers with products as to Generics through strategy as our product, this additional important first I’d Generics generic results, of a Levothyroxine, our into generic Todd of business. an segments. opportunities. product higher net you’ll impact year. our which the Rivastigmine, on from of I We the continued advancing and combined focus included X% XXXX new execution see and on additional QX noted on with In Before six in like milestone our expansion the new Slide which throughout the segment earlier, have which highlights build higher

to strength a and consistent as supplier shortages. we our chain quarter, the and supply reliable capitalized and During on played disruptions

to value We to as drive sustainable growth that products. fulfill more high by will to a diversified of arise. of customer partner includes position product they core our as needs a our Generics is component opportunity building explore choice generic A complex continue business to leverage strategy business

and pipelines with As strategy. you’ll and see on this the align FDA next R&D two our developed slides, support submitted both

to X, products. FDA, almost here Amneal’s XXX submitted dosage shown for Turning them as of XX% are products Slide solid of non-oral at the

approvals delivered and launched including so has approved transdermal Our QX. and year, pipeline in far patch this XX the the

Amneal launch so far In positions for three this balance XX products pipeline of the to year. and up tentative have approvals the addition, to The strong diverse we year.

on update XX generic Slide an pipeline. R&D our development to Turning for

played on solid to promotive products Slide products XX our continuing key products of the the to have more from double-digit strong more approximately generic of As in significant non-oral the a saw helping which impact sustainable of are Rytary XX% have prescription. R&D on of XX, our performance here, dosage pipeline This durable Specialty see that higher be value. to on the Within are shown and in our and focused potential entry Albenza. role segment to we both Unithroid, and competition offset gains

United Within new February we additional added covered the agreements Humana Rytary Med-D under effective franchise, with and approximately million XX X, Healthcare. lives

the efforts more through prescriptions marketing gap, proposition established Rytary move maintain Med-D of effectively patients the historical the trend. Unithroid, the and continue Todd. to With year-over-year will over on call turn sales With importance I’ll that, our grew Rytary successful is teams XX% to we as by with over our new prescribers patients value expect to see to the and growth of execute resonating to in strategy remainder progressive we year. growth the prescriptions and both and clearly coverage marketing Our

Todd Branning

morning, Good Rob. everyone. Thanks,

and XX Slide first the generic to review of a segment for Turning results the quarter.

of a from compared results new revenue more million. Oseltamivir than Aspirin As quarter, fourth sequential in positive, a Rob noted, compared than the including Dipyridamole We to more first XX to quarter which first $XXX were results including, is Oseltamivir the to quarter levothyroxine, also competition. our and in sales to of Dipyridamole products the first due the fourth levothyroxine XXXX, first a year-over-year benefited increased Partially XXXX, basis, year’s sales – full On quarters and decline last X% were we’re decrease Aspirin and base offsetting launched as offset between including on impacted base flu business guanfacine. added lower of picked number competition products higher of a was up by case and as Yuvafem. business of typically and season quarter the products, and net

six revenue minimal We though quarter. launches generic from added the new first contribution product also in

in unfavorable and cost adjustments, revenue, margin and gross was revenues income reserves higher XXXX, points the a quarter expenses first realized expenses due compression XXX million, SG&A Adjusted year’s benefit lower result the product legal the impact compared On $XX by compared to the driven basis, synergies. REMS last approximately a operating quarter and lower by first as adjusted in primarily to fees, mix. a as declined product the program increased and on increased we sequential inventory shipping adjusted first basis, to operating freight income of down costs fourth stock Our million shelf $XX of charges. margin on and of sequential quarter basis to of quarter returns, R&D

none million legal Additionally, favorable which the impact were in year’s for this product last included quarter settlements year’s there of quarter. $XX of first fourth

$XX basis, and On gross million to a decreased a due January in by across $XX revenue to the well Med-D portfolio, Adjusted On and specialty year-over-year a the decline On quarter lower basis, driven gap an XX% to higher the Slide quarter to higher volumes when care margin by for offset result the compared of to as on XX, gross rebate net of quarter net seasonal patterns as And of and of operating Albenza. sales primarily fourth and and Albenza, adjusted result to was basis, in managed with our first sales Rytary adjusted higher mix. sequential of versus due the X% declined of Unithroid coverage both XX%, expenses, XXXX, decreased more operating were annual first new loss due Rytary the first year-over-year exclusivity lower sales million from the the a for or million, segment as product liability. December up income as $X favorable net to agreements, result Moving associated meeting. segment SG&A competition. as than specialty million programs marketing income sales of revenue results. $XX adjustments a to timing sequential basis, revenues XX% new our and customer a ordering generic on decreased primarily in higher of spend of

improve decrease million of Moving we this the and cash Slide XXXX. cash of first the operating was in the result ended to the The of we which cash equivalents fourth a quarter factors, to down quarter year. expect number in to course compared cash of $XX with flow over and XX, in

The and income fourth operating by to quarter as XXXX. lower previously noted, the quarter was compared first revenues impacted of

accelerated and conversion position year collections last the cash to we As from of quarter. strategic AR was part by fourth the inventory receivables generic make market operations of opportunities. to our completed driven by led potential the impacted increase impacts which year’s quarter, first to take decision an in to collections advantage ourselves lower Cash last flow levels, order of integration, to during in also investments

and payments including restructuring $XX integration severance payments. Additionally, of costs, million we to related transaction, approximately incurred

accelerate operations, noted are continuing efforts to our As focused our resources Rob and to drive generate savings organic growth. earlier, we streamline

expenses the QX see These cash to employee within increase restructuring expect XXXX were back now the for for including For with we lower paid throughout are will flow and fuel in COGS the year the expected our operations into closing combined as improvement accelerate severance, actions and new XXXX. payments year, launches spending remarks. an an bonuses product as of and in half in to back turn of revenues to costs SG&A, integration R&D, lower XXXX. related remainder cash the decreased related call I Rob from

Rob Stewart

On Todd. we’re our XX, Slide Thanks, reconfirming XXXX guidance.

and of which and so on even growth our our savings organic with growth streamlining European focus we external businesses, ongoing doing our drive the as accelerating operations We’re divestiture commercial reflects opportunities. pursue

This a to from as of We Generic of includes revenues driven by new be which to continue up the second to XXXX declines This products. generic approval. assuming the full XXXX, XX additional in year launches expect FDA this half product currently remainder products the of Nuvaring, increase opportunity and accelerating on year key impact the year. half back by project offset competition we partially will into

We utilizing either in delivering generate for year, M&A positive or this expect which to other anticipate cash investing flow of the optionality transactions. we

the a of and improve benefits COGS, full to within through expect spend synergies. We and of R&D, as SG&A cost profitability project decreased year spending result reduced

$X.XX. EPS of range to launches, on our back weighted. the results XXXX to in diluted be range to $XXX expect expected million continue adjusted timing approvals We and the in expect to we and $X.XX million the $XXX Based of adjusted of half EBITDA

priorities high while and exceptional XX, energies are Turning XX, in opportunities. on diversifying quality, long-term and build impacts flows. do committed operational captures optimistic on of our through Amneal R&D now Driving exceptionally about long-term From that external growth opportunities. a development capitalize service to Amneal’s operational a excellence, internal business remaining supplier and potential. Slide being strong and to growth we’re order compliance reliable perspective, We’ll business customer organic our Slide with build from XXXX our to and are cash strength to achieve Amneal for strategic this combination to position

Now our removed with focused approvals opportunities, to rate new businesses, the commitment to around and creatively maintaining to tremendous remaining achieved amount, for and one the impacts, of we on pipeline successfully and have our our thank a employees integrating while get of want an to product Amneal safety have execution made quickly of diversifying working year completion delivering the remarkable and today. combination our unwavering we our from stand and quality. to launches. capture industry All I laser and they world where leading all contributions, advancing

building this position a from are We strength. organization of

further specialty diversify our drive of focus Q&A. continuing excess XXXX back to generic flow pursue deliver our execute remainder XXXX, on while to our Mark creative commercial to strategy for to going we’re footprint and businesses, both growth deliver start and in developments our targets, to to accelerate near-term sustainable additional the position cash turn solidly within priorities organic that, our For Amneal come. utilizing against years our exploring to shareholders growth. growth to opportunities to to on our our implementing I’ll also long-term With call the business to

Mark Donohue

callers lines would the Thanks, up you. you the questions. instructions to for Q&A for – Rob. prompt prompt give and open please Thank Allison,

Operator

Please come will session. we first Certainly. question-and-answer Cantor Thank of begin And the Chen Our you, sir. Fitzgerald. today [Operator question will now Instructions] go Louise from ahead.

Jennifer Kim

first about the questions question product have here. My launches This from thank on Hi, just few is, six you. for Jennifer I quarter. Louise. this is Kim a thinking

contribution. the had wondering will And your something insulin pretty priorities? how contribution interested insulin that were question around change are long-term could away last are is you just it then for second Thanks. Specialty on as minimal question what CFO, when is of talking course goals And year maybe I’m you in, new and My and and the because noise and the is update you’d you – biosimilars fair short biosimilar your and of just portfolio for Todd that your just to my Generics, about said is, say be what sequentially. recently. if level that diversifying you products of about us talk You think from they the over

Rob Stewart

Okay.

handle to this So and first two obviously I’ll third Todd. off hand

because launched a In the as of those launch XX year. launched the as terms we of of out in contribution of only quarter, within in of first will quarter. volume products continue market share product contribution of in of six to gradually well the products the course first they the throughout But timing quarter. terms Again, improve the launches that the of the did those somewhat when that muted had

so will already continue we the the are back And in see not some as product contribution of products gradual of and launches ramping you launched, but products more highly half our the the only launch from valuable to year.

as gives a of with but the gradual second and value the kind versus do begin incremental contribution these to kind guess uptake the contribution – of do But of of half of It as that you greater perspective a the in they start the year. of I share. So of how provide we on be launch to about you kind launch half as see terms will year first through launches year. all the build, in think progress the

adjacencies in In as terms and continue business, Specialty so diversifying around our franchises, we our platform. at other of to look the as in well institutional

about good you think got a when business. So retail our with today Generics component Amneal very we’ve

segment future, hospitals. business. our We allows biosimilar growing within include that portfolio. be necessarily that for diversify slow is as near-term institutional us in very to focus could we accelerate is a of relevant include still priority biosimilars wouldn’t I into find will to could also biosimilars say And to area to we segment be products an footprint build but that’s that a the our ways infrastructure, additional us try that add I and going and uptake. think that And if to have to a that

through And that to branded in that to that at to institutional organically, my probably we area continue on if look both that the space. fit continue be is injectables ways that we think terms would more generic of focus kind have M&A have focus. insulin, platform of accelerate our of build and injectables so we and could And that we

I evaluate announce today, but at And that call have to to interest that. an then and area kind we and leave I’ll of it’s specific anything priorities. over it continue to long-term it. We short for on it to his continue of Todd turn don’t this explore I’ll

Todd Branning

thanks Yes. question. for your Jennifer,

short-term would relation to highlight things long-term So I guess and I in three priorities.

The businesses find lower base segments to our work throughout with progress Generics discipline to and spend identify to around Specialty in of good to maintain our first we and business and a our is to opportunities growth continue opportunities that to with XXXX. optimize drive base conjunction to those to cost ways level as our drive closely

to the cash cash drive be focus flow our and progress flow would operations XXXX. that throughout from and on generation, second to that The

So that external we our internal the a And growth third balance to sheets good we just move have optionality and we’ve both got forward. the capability in to position, so that pursue and as maintain flexibility would opportunities. be

Jennifer Kim

you. Thank

Operator

will come Markets. question next Capital BMO Nachman go Our Please of ahead. from Gary

Gary Nachman

Hi, good morning.

just with of pressures generic Just products? competitive some you your the First, your to anything to situations out. maintain those is do been playing your what Have and like do need products which those behind how been to with said. you pipeline scaling for explain sufficiently while have you spend your spending, weigh back customers And share the and also Dip how Yuvafem. key able Aspirin then try

talking that you are prioritization where in terms continue mostly the fund been Thanks. about. pipeline and you R&D making in you’ve sure to focusing always Just of

Rob Stewart

Yes.

Gary. thanks, So

and that way of also think matters supply ability I go a market on kind and opportunities poor or kind to constructive our customer we also so of doesn’t of that I look, or Regarding way orders one, to type on key you operate your have service. customers. the have three reliable chain. of supply competitive the back once and does product, with intermittent that when product think a supplies you component positions invest to conversation when in That our the you’re the good, share in also invest two you’re that’s gives high hold or provide our number we And quality, in physician, it Generic. supplier, our a facilities our in chain pressures focus

those have that example in that And despite market good so over Generic the of the we’ve volume we not months. competitive to market terms particular up we one now fits price on decisions off on at what or product overall the many there’s and fact launches decision that a manufacturing want that important on or we portfolio, been on that’s it on whether down Dipyridamole, a come And strategies our into to control XX we hold analysis. want capacity able Aspirin to last supply or It’s Aggrenox. drive then share, how is When basis the been give product. where in you’re to to. incumbency, chain point the try to and And depending each our make how that

us going families want elements of the always out to that product maximize they’re about Amneal where got supply the And move from the get about that, and don’t we’re is shareholders. to that those make kind fair customers over price. the provided and that XXX we can so we’ve they value that product away looking day generally for feel our you companies we ways at our that chain day in and think Amneal positive And decisions again, and

of ANDA’s really As about on on are. what number a really R&D, of necessarily time the applications the opportunities the focused have we companies ANDA and – over not over think lot focusing

of as that in we way looked and kind the just have integrated of our reality, okay, and there best say, generate not think into feeding to necessarily together, new back to make addition this kind we – are ANDAs. the way ourselves Pradeep going at greatest go And right investment number challenged impacts are returns, and market where and that opportunities the the of the to investments Amneal of as kind as spend, well we’ve as the reconfiguring with we’d so and we’ve and of R&D

it’s targeting a we opportunities. portfolio enough any we now portfolio got think about large that we’ve enough it’s – that could ANDAs, targeting that where a but point really of We’re good more a at in certain a the not number

they making return we have We’ve have we and those also on that approach. we capability may R&D to of kind of going of we’re type the and of And us be really focus is at through sure, investments and dollars on more us the invested return. of will the our going that looking dollar We’re forward is infrastructure higher fewer right in And process success think make last going that that have right we’ve introduced because that be sure is to this the a assets technical processes number we – for to think manufacturing a expertise And challenging we’re the being the dollars able that to over to new our year. each generate that around and the area going probability opportunities generally contribution disciplined confidence opportunities durable have are high. every been for in those that’s returns absolutely long-term. the internal right and in investment channeling competitors very think that it’s that’s to

to thinking been you that aligning we’ve our the how hopefully on infrastructure flavor reality new a kind of gives about the market. So of

Gary Nachman

Thank helpful. you. Yes. That’s

Operator

will David ahead. Amsellem The come Please go next of question from Piper Jaffray.

David Amsellem

Thanks.

just enter the competition? competition is that Voltaren, view of products that this So or previously not limited that Voltaren, how been Can potential that Vagifemand maybe you qualitatively in so Akorn have year? given on market Aggrenox. composition And to then planning on what’s the later deterioration Thanks. on specifically face in your resilient the market those facing and are now resilient products about talk

Rob Stewart

has these by – going under what always targeted be Generics in days to going are to other Yes, that be look are competitive anything margin launches.

the the against first in call the impact significant have quarter, a it course important bit that in continued the And to is the last a offset top to We Over in of XX the we launches able months, let’s of fourth productivity our portfolio. saw so that. we’ve products saw that six that the competitive which number of to quarter. it’s of, why we have seen impact launch be

been because the products. So with we’re in maybe even little that market that hold bit can there position on of and a our chain seen of get think because more the said, of fact we’ve at reliability. we’ve fact for been many of that supply able I these the formation, can bit to still a again these we’re these remained more to where because on we fact the have a products, premium to we that competition market reliably We’ve pricing share of a able in many our that supply resilient,

top some though And that respects quarter and all of margins and late seen even through durable. into in of fourth first I’ve now competition third and are They’re then continued So These our still started XX, additional still line the forward, quarter making assets be quarter. going today to of good shock us again to products bottom our that good contributions our suffered today. because the all will expect for competition. I they kind continue to they’ve even

more will competitors. We still see

with those that of got our but guidance, the assume to fact up growth coming we We’ll issues speaks additional synergy in the competitors we come we’ve we do, again on products, competition because in within mute got capture the as course these Voltaren. they all the which assumptions impact guidance, deal expect will Akorn got that mentioned we’ve many do were You of our committed fact to launch opportunities, other of those productivity. we We’ve year. that throughout of the that on

David Amsellem

Rob. Thanks, Yes.

Rob Stewart

you. Thank

Operator

Please ahead. Our of will go SVB question Fadia come Ami next Leerink. from

Eason Lee

of secondly sort how share come doing busy you’re volume of of and forward Epinephrine, then both entry on Hi, as with Ami. it’s your Thank your the of This of we’ve please. synthroid the generic shaping in we saw weeks. XXXX, about you sort given see season? the how level. up market Levothyroxine, Generics Lee going talk a Auvi-Q understanding And regards do taking pretty questions, up into you sort to generic. do sort this see And supply my gaining shaping recent the a rapidly is EpiPen you On two Thank same for Eason good as that price morning. not we product questions. have I sort of that can on you. how for share on of Teva’s sort you Maybe seen and in and

Rob Stewart

this product. as a Eason. good branded got both partnership really entered Again unless in Levothyroxine, being into They’ve a branded supplier the With it – is AB respect opportunity as Thanks, competition Stevens. challenge a with create Yes. to think to got generic. have substitution. for be great rated the we’ve still It’s Levothyroxine we be all a well – four, you back able we for to a that particular to is the good this franchise very let’s history your great supply Jerome of reliable products long a even with to going I the us call what there. for market out And to

You to too to got a to considered of the That another, product. re-titrated. is, is product therapeutic brand product. creates patients your guidance be a that that, particular When from also switch suggest narrow stickiness one FDA patients this or that adhesion another from it’s generic index to what to an remember one or somewhat a

kind entry been competition Adrenaclick, very, regarding have improvements Jerome our and for say protecting remained to is this product even that position and I you in product. stable. a challenges. any believe the kind With levothyroxine is also would see withstand in of of continue of despite in so, we for deal be relatively also that could us great face structure shares around with the product, pricing volume market this long period the very see of Stevens a a contemplates to going that even great contribution a standpoint, fact chain From our seeing And and for of time. we the supply to competitive a I that this. are demand there’s

We course where fruit XXXX, bear better made has have now of seeing are that reliability of to delivery efforts starting and throughout performance Pfizer product. the the we’re better the

We continue Right that the to think third like I and what season we’re or not to the what rated is were the of will the anticipated have additional of struggling the inventory inventory in this product. season Teva other and start, building year course year. advance now, last seeing wood. throughout Adrenaclick I’m we in touch we I second quarter. epinephrine, like compared AB with to EpiPen –

we we product has EpiPen, marketplace. would So is it’s this And in still, is I own from positioned a growth driver its but actually Teva – in XXXX expect taking essentially And I to It is EpiPen. you versus think interchangeable that, the Adrenaclick share with our market be think expect, see which well XXXX prescription. not

Eason Lee

Great. Thank you.

Operator

go The next Please from Fraser SunTrust. question ahead. will of Greg come

Greg Fraser

the flow taking growth just receivables normalized cash the year-over-year now. throughout and cash you could to for Fraser expect back more in you on flow. you whether for on Thanks a expect Gregg follow-up happen Greg to comment And that in improve first in for receivable expected quarter the that a want year. operating had Was XXXX. Great. something I was Gilbert. is noted questions. cash you swing to on to level if I wondering flow the It’s

Rob Stewart

him. to Well, filling Gregg say actually I for first Gilbert off, for I picking want same with in to want somebody the name congratulate

questions over those turn I’ll question the Greg. to thanks, – Todd. So

clarity I think around that. more some he give can

Todd Branning

Greg, your Yes. Thanks is for Todd. question. this

regarding of flow quarter the given we cash swing, did in year. anticipate the conversion completed last order So fourth our to that that we cash

the So we’ve we year. conversion knew, and that that into cash how once collections customers first this accelerate that did of out of and quarter the we would with fourth we quarter worked

you really where have collections cash something So by the our think over we unexpected two that be. it look wasn’t should trended quarters, was they us, exactly, if

our some with order fourth to was cash it of a collection cash into quarter of So just function conjunction conversion. accelerating the the in

seen we’ve balance the customers now some of the that with QX year. just and of for and that in seeing we our outside got expect of quarter, collections, but to continue and – cash the normalization So we’ve we’re

operating and flow cash expect with flow still February. see in the do that our year. we continue to growth, cash operating XXXX. of you throughout progress spoke to what going is we for that we when the continue we And year-over-year, signaled to Regarding grow last That’s balance

the in Of maintain course, ability accelerate generic year to the launches that half will and discipline in our and back costs of be driven our investments. our around side, to by continue the

expected. a see flow cash what picture, we where growth had consistent again, progressing XXXX. we move do we is that’s a And So with through as

Greg Fraser

Great. the Thanks for color.

Operator

question of Please go Dewey will ahead. from Canaccord. come The Steadman next

Dewey Steadman

questions. taking the Thanks Hi. for

German seen you’ve often business? some forward? newly out you Thanks. the perspective to of is businesses, the sales combined Obviously, UK that how attractive international? business business. into What On obviously, now the your and international in an And guess – this what international thoughts I space from else we’ve are and the on lives there ex-U.S. dived prior opportunities going our

Rob Stewart

short-term. businesses. synergy current I were back looked a too are it on international scalable, the wasn’t size both fit small us that call point – didn’t too of, know, kind – trying launchpad not to And of kind or our prior not and as not scale good at would businesses, much you into build, you which and Dewey. wasn’t model past that acquisition German necessarily that a meaningful in that thanks, did take business, the UK Yes, you relatively we were degree the distraction let’s thought of be were necessarily was it enough time, They my out these history going in the much fully But that it as sell our create. as for to for integrated cleanups it would strategies the to noted, that, – somewhat we for significant today in our getting we a sell opportunity much our between you and right to size, the necessarily we’re our I’m If me. an the that see what going off as greenfield immune found appealing strategy I think it get the don’t that focus target that become sizable, to value businesses a I the important came generic But was to markets. be into acquisition internationally doesn’t more to bit organization. current mean refocus that side. us, that could that drivers domestically be, those with create you But business, around and for versus organization particular at businesses, playing where international more international I the distraction to and as would trying more of to would really

a would target become priority share to market and more more to came an – that we meaningful more to something with a significant So, longer find for would right was but had prominent us. in more that we And need attractive it for us a that that need the term. for it infrastructure would had acquisition become have

Dewey Steadman

right, All Thank great. you.

Operator

come Stanicky will from question ahead. next of Randall The RBC Capital. Please go

Dan Busby

for Dan on stick good Hey, is morning. questions. two This Randall. Busby I’ll to

directional been tentatively color launch the that or what guidance to approvals to pertains regarding have any on the regarding And how extent few approved, you you year. a for the First, quarter waiting Can the as provide second you. we approved back what in key new that expect products much should remainder the about you launch and year, contribution then Thank could Nuvaring. of on already relies versus provide second, cadence? EBITDA guidance such talked first this any on of half, new revenue quarter

Rob Stewart

Yes.

type other some in got So much I’m in into are the quarter kind kind it significant provided quarter, the timeframe fourth into get that too build talking for product others see of would from are. there’s and that competitive third a expect to launches, third obviously quarter, of with continuing not that But steady call. neck some that as to launches want same on all I because and color and of Nuvaring, timeframe. quarter late in about be us reasons, XXXX. We well We’ve we more big fourth we you’ll of neck don’t kind the really going others are Nuvaring disclose around and

a fourth Second in not we we approved get see contribution quarter. but a our guidance, providing we But significant this and And would most these third say will will quarter them. greater as with up and we be products year, release of quarter. then launched, press quarter, I second would slight we’re that, increase specific expect some the in quarter ramping in

can way the things of of about looking last is think the confidence this year, give coming But through. these you think that kind our that maybe at are almost kind I So year. that business

lowest, starting kind where should build, time. same expect being fourth our rate this quarter than strongest at quarter first a see kind you first that you quarter, of stepping gradual year from second we being our and very The XX% granted third quarter. last the But quarter, up improved can over quarter were of higher year again we’re

think a of XXXX. I very So line similar trend in XXXX you versus expect would kind very, would

Dan Busby

Got it. Thank you.

Operator

from Tim come of Chiang will question next BTIG. The ahead. Please go

Tim Chiang

you additional that at plan it in brand decline probably products would little that a the you you year. just bit specialty sort Can already specialty have on it, How sort can back looking potentially what guys Rob. bolstering about in have that the highlighted growth What the are compliment Hi, side. guys get in business But talk obviously engine you today. this you some to of guys bringing CNS do side? you of to you have

Rob Stewart

specialty is I’ll work Yes. impact Thanks, question I’ll exclude as open you off, well. remarks. up into when of But, of growing, Albenza. And our couple Tim. Joe this the business first a with

growth. we’re Albenza. look we we that masking find don’t that businesses at that. went mean, when we at to number to Unithroid. leverage because of are look to the the If can I we that on Albenza necessarily kind So disorder you you the loss performance where growing. also would infrastructure, that. specialty other we the thing on overall the neurologist, as But our keep generic, right can But looking fact Those certainly But calling as exclusivity core of purely addition open real that assets be as is adjacencies the of of that’s had need the CNS well movement portfolio in specialists. loss we’re sales well,

also well think two we opportunities, into think GPOs, that potentially have that opportunity a the and portfolio, assets we specialty more our other maybe into injectable to say other infrastructure maybe as that we well franchises, the franchises selling an the the where there. that potential strategies institutions we setting leverage well But our infrastructure that. fact that with injectables can leverage platform, I our we on Joe, on comment neurology. have then add or in of – our as in that would as in as that we’re our We institutional also have with because And sales oncology that

Joe Todisco

from mean, I promoted net pointed Rob seeing as an a out, as four are of year-over-year brands all Yes, Albenza standpoint. sales our growth

despite Med-D, with heavily quarter coverage through standpoint. all script the Rytary Essentially, from headwinds Med-D typical with strong copay a reimburse Med-D even had a Specifically, QX, first resets gap.

growth claims to want trend our and effect. starting marketing data sales taking that see, lot to showing the see specific on a of indicating promotion are We’re we and

good of Unithroid Rytary we well year-over-year. in and So about feel close as

Tim Chiang

year of that I our is sales you how the noticed guys follow-up. levothyroxine back half Unithroid. promotion the expand are force to just products. branded in mean, for Maybe going sensitive one your I

Joe Todisco

that. I take can

it promotion sensitive Sorry. The business fairly is a model situation. on Unithroid, have we

will for what niche lot that index, on as medications essentially, very therapy then a It’s others not narrow A whatever we’re are previously Rob in Unithroid space. space call and as a line therapeutic stable. the before. on are second and it, We patients that levothyroxine reason of mentioned

So offer stability. patients gets high we a It’s quality medication brand. that a

that where brand. So educating we’re physicians that is very that unique proposition a sensitive, to on promotion extent, Unithroid the it

territories do maintain more So help trajectory. to add we the that growth our

Rob Stewart

around certainly I our and performance think our these put we the these see about brands additional the evaluating some confidence of the we of that products. potentially open that performance increasing some of up additional level hopefully behind spend constantly promotion territories, think is some could assets. And they it, way these we’re accelerate

budgets you products. year. continued is And year-over-year that throughout little put as first relaunched should efforts these is we’ll of an quarter my bit of of of area around quarter-over-quarter, the of the the that’s SG&A marketing quarters our some fruits that we’ve so choppiness as the see some now behind. the to the subsequent the, the some kind kind in see And well this effort why And confidence continue that we improving of certainly of confidence

Tim Chiang

Thanks. great. Okay,

Mark Donohue

questions, concludes That available. reach investor you out please relations, to Tim. you We you, thank callers all we’re today. follow-up our for of us. joining Do have for any Thank all

So we you. thank

Rob Stewart

Thanks, everyone.

Todd Branning

Thank you.

Operator

now The today’s concluded. conference has for presentation. thank you We attending

your disconnect now may You lines.

Amneal Pharmaceuticals (AMRX) 9 May 192019 Q1 Earnings call transcript