AMRX - Earnings call transcript Q3 2020 | Amneal Pharmaceuticals, Inc.

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Tasos Konidaris

Thank you, Andrew. Good morning and thank you for joining us for Amneal's third quarter 2020 earnings call. Earlier this morning, we issued a press release reporting our quarterly results. The press release as well as the slides that will be presented on the call are available on our website at www.amneal.com. We're conducting a live webcast of this call, a replay of which will also be available on our website after its conclusion. call without material consent. the today's cannot Amneal that rebroadcast be company's note is of copyrighted and Please expressed written would or you call remind are like made I this during forward-looking that statements. stating for predictions statements outlook future periods management's to based statements to are is available on solely These that information now us. press review which presentation, applies this call. to the Statement you and titled encourage Cautionary Forward-looking release on We section Statements in our to

most which may updated performance numerous due Annual website are XX-K listed Form differ on sec.gov. our reports on on and of future Our Form current factors, and on SEC's which X-K, at our XX-Q also to Form you recent quarterly revised find on or Report website and the many are on can reports our on

certain We non-GAAP measures. discuss also

on will you some use our in we the of statements measures correspond U.S. release. important presentation. You measures reference to throughout that reconciliation and U.S. today's of information find appendix our GAAP the GAAP our find non-U.S. a financial presentation, Included in earnings GAAP will of these to

are Steve and Counsel Corporate On Generics this over call morning Secretary. Specialty will our Officers our well Andy Chief Joe General Chirag the Commercial of Co-CEOs; Chintu Patel, as and turn the segments, Manzano, Boyer call our and as our Todisco, I and to Chirag.

Chirag Patel

review third quarter Amneal’s of results. And morning. the joining you thank in Good us for

year, of EPS of with We are $XXX revenue prior adjusted substantially XX% pleased adjusted with up and up of versus net versus performance the million, quarter million, up strong $XXX $X.XX, this foresight. XX%, EBITDA

woods all could patients have We an resiliency the successful We said part disruption we know pandemic due last pickup over the have integral navigating second is compared to our to and to unfortunately, chain medicines this X.X COVID-XX. in dedication the been performance year. possible perspective, work And in of the execution we of the strategy. wave we preparing sequential lower any how few our are not customers affordable months QX, and to material know consistent difficult been, demand supply team. and ensure COVID-XX of their excellent next the of reflects Amneal and to providing COVID-XX, innovative the out yet. Having of the quarter. the and global commitment and From XXXX strong and vigilant of meet clearly financial for be saw Our actively we continue our without coming of the disruptions that, our to not This demands avoid months. over course

track call. of in we our the medicines quarter need be is largest As and operational the quality an to strategy. to the United of we U.S. first preparedness of in believe critical fortify XXXX our excellent States. discussed issue uniquely United generics the us domestic expertise expanded part positions production company States. And Amneal in domiciled This domestic the record based pandemic manufacturing raised and drug

working and reinvigorate energy industry improve as our the as with intent respond excellence both of course as profitability. business, with last protect we our resources we bipartisan focused effort to we diversified QX, bolstered launched you operational co-CEOs base we these In look to all new rejoined summer, our to the safety our citizens. amount and on executed Ever have on to the and since pipeline, shared this we to legislators products, and of R&D well substantial channels, last Over objectives. months, of help successfully to health the forward spent few distribution from parties,

well of launching revenue of XX% XXXX. of the as with by complex target the EluRyng XXXX, products. strong compared The double-digit the to Let Sucralfate. segment net generic continued X new net XX as successful where and We increased me start reflects our growth performance QX revenue by launch August

are Hydrochloride [indiscernible] schizophrenia management, for product Fluphenazine launches, building steady including Patch. System a of with for generic new of Lidocaine strong pain our and treatment and presence generic tablets flow on We Butrans Transdermal

we products. increase is in of past, complex ours. more a shift mentioned -- by pipeline products non-oral to our the is priority our mix strategic or differentiated a continuing to reflected This the As on R&D of products in substantial focused solid

and were In reflects addition This to the new our base relevancy by commercial in by business. of commercial the organizations. broad and our growth supply product portfolio, pleased growth, customer we focused our chain strength

with Top XX.X%, PLD. margin a led Gel, generics as as of in which looking Finally, of capability to the equivalent constantly eye efficiencies on incentives to portfolio growth store substantial Pain example partnership channels the QX counter. XXXX. increase the ways such introduced over An Arthritis for launch brand is our a of close in new as keeping in such leverage gross and manufacturing to to we're compared well line Voltaren in we XX.X% generic product of adjusted operating recent

as along co-CEOs to are to our broader with of our excellence, continuing focused we expense on component ways key Amneal optimize our As and a base strategy. acutely operational find efficiency improve team, X.X

margin activities time. have which to to above SG&A net company-wide and list to purchasing robust from XX% course help generics over a expenses, drive deductions of gross adjusted will manufacturing the We of gross

We up new prescriptions starts. show our was on the prior fact is considering year. physician performance office XX%, to turnover COVID-XX and headwind feel growth, visits X%. approximately quarter, to stable continue came Unithroid which about strong of Rytary now and very patient having where specialty and serves business XX% the and this combined Both volume a segment compared and our second strong with good we the me Let out respectively,

high million a revenues the carry products to top-line from million higher healthcare such to team slowdown -- on COVID-XX, in new $XX.X strong product despite which has introductions due increased top-line margins. to to third-party Moving $XX from business healthcare usually generate nice growth, the quarter. growing prior The continues job in suppliers a new and done

segment. about the be continue in growing over We the that, me let Chintu turn government call the to excited now. opportunities With long-term

Chintu Patel

Good Thank morning, you, everyone. Chirag.

approximately Let our responded COVID-XX disruptions. the of not orders team our customers' COVID-XX pre-COVID-XX operating how to my truly approximately echo third and unfulfilled discussed with we $XX And have million proud quarter, and In interruptions. to declined that overall, quarter, manufacturing response, our with to that orders of are to facilities first me levels. are and customers report pleased due working members were suppliers filled mitigate brother's start close to million. I'm I I'm Last $XX our sentiment.

hand building are on and We strengthening inventory global chain. our supply our

sustainable performance rejoined across as led pipeline As have including August, chain. Chirag last initiatives in of the number well R&D way, excellence rebuilding our supply to we a a improve since operational strategic as we to mentioned, improve efficiency

pipeline. Let demonstrated inspections our quality-first XXXX Every we me and aligned record, by spend to segment our all in and strong action Generics highlighting and a R&D take is prior successful track will years. as continue mindset few minutes quality its

to generic business with Our sales strong and continues improve increasing margins.

Our manufacturing for results our compared increase increased to to strong which team volume reflect the XX% share its alluring gains to and market commercial second quarter. in enabled XX%

expectations file and by on this complex up August ANDAs are generic track products next we addition, XX. deliver our XX to year, of close XX prior to from to plan high-value to XX In

growth XX generating and non-oral manufacturing expanding are meaningful particular, these In is better focused and capabilities non-oral very be ANDAs XXX meet which continues includes product to Also, and by Generics products transition over our hospital XX for of possible and XX% are over R&D on we pipeline complex products XX% are to will refreshing months over portfolio many solids about years focused development through made to constantly demands dose. line the injectable in our pipeline our our solid business. Our in-house XX many complex efforts, of Generics of our to current next come. our

our to few that plan have attractive Turning a number pipeline, years. Specialty product next of market to bring over we to we candidates the

as are both our about leverage We commercial our the opportunities and R&D team infrastructure. potential excited they

for of generic markets XX,XXX clinical to Let's dopamine is a terms we improvement Gravis a successful commonly MG we coverage. in difficulties offer extended-release and and a in material producing speech over and the that topline immediate Kashiv is which in three data drug technology droopy outcomes to will hours is Its significant and release. difficulty] next generic treatment Myasthenia the while for with Unfortunately, improved our year moderate patient CVA product platform time, quality rapid to over autoimmune four brain material relief an dyskinesia. treatment that times which KXXX, movement. our we once-daily decreasing to population improvement be would results, of planned life expand muscle is is vision, neurons Parkinson's be launch and year. and same good III start profile addressing some each IPXXXX IPXXXX convenience. without Ending patients on U.S. Phase second expect an Phase the developed rare is dyskinesia. of MG. near-term formulation therapies. in eyelid currently half product onset program addressable that Rytary improvement for to is the double demonstrate Phase extreme good with improvement with patients This of our ongoing, Biosciences which to accordingly. XXXX. PD Parkinson's a Based swallowing. profile time, expect release a carbidopa-levodopa with KXXX superior than patient opportunity PD. symptomatic on degenerative product the IPXXXX, patients see XXX(b)(X) the clinical patient formulation, one and the times in We roughly therapy, most versus is and last PD delivery weakness, Such and our disorder from four that application in symptomatic in as therapy which a year. patients three approximately times to are day more Rytary terms improved specialty in have expect could causes diagnosed as day. a form benefit are daily and the which of existing is tolerability, will III pyridostigmine, PD to proprietary levodopa per is a pipeline current prescribed Rytary KXXX to current dosing patients six [technical on one II in-licensed in There commercial that A we two of immediate Such million which improvement second trial a would targeted affects are for may translate the dosing trials has through disease in for troublesome of disease, per two of is time given see currently for therapy the the on of new be first-line are day. first-line XX% product XX-hour clinical that affect There market in [technical a with which next-generation difficulty] a

is XX,XXX on point We neurology a as commercial States. affecting field in a deployment opportunity patients prescriber concentrated team. MG base synergistic United to our XX,XXX the As an and disease, reference, based attractive see rare with these the

the starting the results be soon will with and this successful file we XXXX. to product assuming trial We trial, for, Phase FDA of in plan III KXXX

make monitoring well leverage Beyond of targeting the a platforms external a to success. have these opportunities And our as probability includes business reasonable as exciting partnerships in Amneal's part years. that candidates, larger coming of we expertise. are This actively M&A specific specialty

I will a budget, measured their during work call share in the efforts thank we suppliers, acknowledge turn addition, product And our customers, employees over like to challenging during way. expect would their dedication these R&D branded Tasos. and hard and our of COVID pandemic. for internal increase directed the I In last, to development, for the now At times. to them to

Tasos Konidaris

or difficulty] [Technical QX million $XXX XX%, XXXX. to compared

the for Our it the AvKARE revenue quarterly consistent while prior for our accounted up recovering, Specialty to a Generics solid in growth net improving while growth, XX%, in be headwind as year of implies of performed of which strongly, of to reflects health was business. selected not continues visits normal volume well. $XX COVID-XX market disruption challenging, acquisition environment. utilization quarter. organic products. to care This execution segment albeit And XX%, a is patient million rest performance across acute the levels. And line back is a

XXXX reflecting QX to Adjusted of and Adjusted stable or COVID-XX XX% and good Chintu we're XXXX. to by line compared with AvKARE XX% improving was Generic specialty. we're XX.X% making margin mentioned, $XXX of disruptions. goods to lost finish up in And position. sales, the gross $XX chain our As inventory steadily QX million strong in due sales, essentially performance in very reducing expectations flat was profit our supply gross million progress

have EBITDA the higher minority the taxes. in resulted any QX cash strength $X.XX million expense Generic was we this XXXX, operating given basis million gross offsetting year-to-date. year, in AvKARE contribution XX%, QX mainly $XXX so operating Adjusted growth, current AvKARE. nature, XXX improvement efforts driven Excluding would $XX points reported or to million compared adjusted third than expense interest management interest financial management Adjusted million adjusted our reflecting the driven And been fluctuates Generics. by the have by approximately strong $XXX of AvKARE a the and in acquisition, cash we ahead The million up at margin higher in trends quarter, strong EPS of of prior and generated in quarter well EBITDA or diluted XXXX, XX%, $X growth, $X.XX flow. business tight by lower were By quarter. substantially flow of $XX and

ahead performance performance A improves year-to-date strengthening flexibility. balance the months we our of million, and substantially financial of sheet the strong first generated $XX is nine our Our is XXXX. financial

available XXth, our of had As ABL as September facility. $XXX $XXX an million and through cash in well equivalents cash million as additional we

seven improve As importantly, our times ratio continued XXXX. of times debt-to-EBITDA at the to end versus net X.X to

Generics, offset me both that year would the in million this Let segment year XX% factors: the which benefit product alumina strategy of increase million Levothyroxine net than prior diclofenac now quarter I highlight first, late or $XX a of introductions. of declines sequentially. stronger Consequently, to which $XX and last in performance or of XX% or revenue $XXX from reflects the million, turn more gel. the three sucralphate, our delivering reported

initiatives of our business portfolio the resiliency commercial to of and the Second, our due base effectiveness the broad products. relevancy our of of

Third, negative related in prior the lingering less in of back orders elective COVID-XX terms and of a of prescription trends headwind quarter surgeons. effects than

adjusted improvements in and in QX number XXXX product for a the XXXX. to gross was XX.X% launches, higher substantially offsetting Generics new which margin Moving reflects on and pricing operational XX.X%, segment, product quarter The gain year-to-year the XX.X% than of favorable pressures. second mix

COVID-XX. our Specialty adjusted at approximately now were me and demand as segment, impact XXXX were products. Specialty Rytary million in the declines we're turn resiliency Let for of QX margin to unit segment with offset was of growth solid Net non-promoted the line gross execution, for negative in with line commercial considering ROI Similarly, pleased our by revenues of in with QX the our XX%. $XX

gross over Turning of to net about margin reported AvKARE, revenues of which $XX million and adjusted XX%.

of our third adverse prudent is growth revenue company XXXX While demonstrated be that have the fact gross points. as period in it base headwind top mentioned expectations, will earlier, we COVID-XX This been at This over our will channel full lower Furthermore, next the a percentage. gross profitability. to ahead overall headwind margin year mix AvKARE our Considering clearly and basis our the creates line year, temporary as I performance in has a mathematical approximately AvKARE's the AvKARE to believe quarter, or is our where of mix our margin diluted substantial XXX is moderate update course year guidance. even disappear by AvKARE margin results. through

to million the the from up range million. to XX% million, of prior to finally, prior million compared $X.XX, guidance. flow, XX%, to to Operating from EBITDA, million. up $XXX Specifically, from $XXX from $X.XX adjusted guidance $XX by AvKARE. to $XXX Adjusted up to billion. new to up XX% absolute cash $XXX billion million EPS, driven $X.XXX from $X.XXX $X.XX $XXX to to XX% to of – revenue $X.X no to million, billion EBITDA margin, Gross is $XXX million CapEx billion, $XX million, And $X.XX change $X.XX. million $XXX $XXX mostly

now more color Let our bit a me around little guidance.

our growth mindful we're First, of all potential the have Having it's we to to we said to portfolio a be impossible a predict pandemic, that, in need continue improve. in the middle operations outcomes. manufacturing and

gradually Second, more will towards we patient normal levels. move volumes expect

are as were sites and operating turn With to clinical year R&D to Chirag. expenses somewhat in that, while tempered an expect Third, due expenses increase reopening. G&A the we this call COVID-XX, I'll

Chirag Patel

you, Thank Tasos.

made We would of drive year continuing pressures pipeline. executing call reinvigorate and to to despite our your excellence pleased look to to gains to take strategy, like have to the forward significant Thank I operator this the in COVID-XX pandemic. are X.X our operational We now the turn Amneal over you. questions.

Operator

Piper David Instructions] from Sandler. first of go We The will the [Operator question-and-answer Please Amsellem ahead. begin comes now session question

David Amsellem

Hi, thanks.

a just So, couple.

you pours think, And are and in an competition what first, will specifically, you erosion secondly So and the on? generics? that's to questions Pegfilgrastim competitive you other is, marketplace? more of on Avastin other about you'll you And see when as of get I what like, on there. Thanks. a opportunities like increasingly talk about get anything see couple for your wanted context can how could that working pricing then behave molecule thinking more business. thoughts you Do biosimilar these your One biosimilars in there's visibility we small markets? opportunities you're biosims, And think on

Chirag Patel

David, good morning.

As filed filed is we three mentioned are products, with we've One before, who biosimilars to key be soon. have FDA.

An considered as more as complex people, more will we competition as comes, Congress and are comfortable was of reduce happening. to pricing. Market behave exactly what's hoping competition more We intent more feel doctors such create from generics. prescribing a biosimilars. That's the and biosimilars

carefully. the invested from So very beginning, we have

get is erosions lots molecule? extremely not not on investments. ridiculous, The mentioned molecule, I And small expect do we only of Small as we additional signs, XX%. commenting you it's to you the hard not opportunities XX%, commenting that. far, like will know It lots up manufacturing three the happen. on. are on erosion of programs, that so No, working are

between up do higher generics more behave pricing. complex today where That's we biosimilars, biosimilar in guess or it like and value you So, end will my in see somewhere on what will between.

Operator

Nachman question Capital from Gary BMO go next of ahead. comes The Markets. Please

Gary Nachman

guys. morning. Hi Good

of little follow-up the a a last First, to question.

pricing managed dynamics you're So, much have difficult care launches that How to seeing? negotiate new been How what the with pressure? contracts.

So and much then with gross launched I that came generics guidance, was recently forward. just guess EluRyng I surprised maybe complex on more Tasos, compare Sucralfate going for and margin that expectations it the And then that slower. was Fulvestrant

know is So you. Thank just it anything a about that. I of there? but baked mix a little else the talk is lot in bit driving there more that's AvKARE,

Chirag Patel

morning. good Hey

questions generics, generics complex to molecules generics. conversion small customers to for on be on been pickup your tend they So working as immediate the conversion by the to and immediate its how same years,

care we we managed see to whole are any these and far ballgame they So launch get as don't Biosimilars approved. as with for generics. negotiating products the us is complex a as difficulties new preparing

will we're we we So, learning specialty how -- group. the -- to have

the group. have We managed care

in stakeholders So I'll be with various we'll biosimilars. to turnover for... negotiating Tasos

Tasos Konidaris

you. going impact Hi Thank is nothing gross on there good margin Gary, of other the morning. Yes, the AvKARE. than

let's back So peel onion. the

we as about terms think it segments. those of know, in So three you

which overall be mentioned, So I the period right? So under vast where will year. the are we year-to-date, nine we points our the than same basis generic up last margins up as year. with generics, last belt, XX% the higher for of that's let's business, year substantially from ended the And our pick is majority months XX.X% XXX margin,

right? increasing business revenues, about is of the our biggest great it, increasing part profitability. feel we So So

largest business, right, part Specialty. second The is of our

-- are they gross relatively there margins flat. margins, the So that

this. you So the great then you of it's January. other XX%. durability, AvKARE, And about it there that right? business acquired a end at lot lot the feel had newly piece as was of know, and a There stability which XX%, So about is is there, is XX%. we a of

That company has a not guidance business. revenue was overperformed to it the a business revenue when perspective, February, its has just as So newly in was from overperformed a clear, high. on And profitability perspective, right? just gave acquired be

not new products. Just from product our other introductions companies, and down because of COVID slow

going guidance a by are AvKARE created bigger was our what expected impact XX%. that to the of So this is headwind, XX%, And getting of right, reflecting than results. how we

in mentioned ahead our right? I base, As our in base. is AvKARE is year, next AvKARE

down new to behind of So standpoint continue will us. right? expand generic from the Hopefully, Continue COVID-XX be part mostly a our launching products, business.

margin. an on utilization should be our see or gross expanded should plans manufacturing specialty, So we an stability better

Chirag Patel

business, Sure. working gross we for which the U.S. and add margin. top line And especially also, the on products to transfer many to are to will our plants AvKARE's

Tasos Konidaris

Gary, that your question? address

Gary Nachman

Thank great. you very That's Yeah. much.

Operator

The go next Gilbert Greg question ahead. comes of Truist Securities. from Please

Greg Gilbert

was Thank some with Tasos for hoping time about AvKARE, you. Good strategic performing the now. share of just lived longer us Obviously, your as you morning. Chirag term. with And and the thinking financially. you've asset importance I could said, it's well Chintu,

on strategic of angle? going and longer the importance about months? methods hoping the a what's in diversification Joe, on being past other important outlook about beyond term brand? curious on several asset could simply I continued you've terms of versus that detailing then that So was the face-to-face learned growth And you for with Rytary comment over Thank you. what's And

Chirag Patel

So, Greg. is This good morning, Chirag.

two me -- is government mostly we have AvKARE, One we So -- let actually about. are which excited business, avenues within the business. three on

third pattern company, We products over still have the going five products us of from to Number domicile next off to business more for years. the government we generics have parties. offer AvKARE largest U.S. portfolio. the Being multiple and products

building substantially we're our pipeline business. So for government

So that, we're excited. very

launched expansion channels. what increase is so the time, well three comes did margin directly they allows as with partnership to to immediately, unit segment importance customers, products strategic have -- as is different -- product we're our is but so eight COVID it sales which and with these we bonding direct third areas is built up to are to customer during is all The providers, segment, a is handy. that first we're to alternative importance, more next in it margins, small part -- when dose, helpful shortage, create -- in distributing lower build supply -- able in over overall and our and the capacity sometimes launch we which Another which to we Strategic is and which because year. for are avenue,

about very be to Joe? continue we So excited it.

Joseph Todisco

patient back we pleased with Chirag performance headwinds. the thanks, for third starts despite Thanks, higher Yeah, pretty may quarter keep you're been think growth of prior maybe spend. also the out is the question. biggest some pills on even I But which though refill the not and I a have starts of for Rytary good Greg, growth of number Obviously, the indicative seen as were high new per sales of patient in But COVID We in XX-day retail -- new patient amount to over be brand. script that strong. settlements aren't challenge door, a that's year. And we especially think across script at-risk their to the the scripts doctor all got remain Rytary more their populations of we've for of decent the rate visits. pharma, -- that as but felt seeing regular revenue going where going overall for what growth,

little sidelined in the to through were got a But to of bit. large adapt why good opened part virtual Now maintain a that through to And And did, sales these I think of detailing with quarter, going and forward, of XXXX in efficacy in became as Rytary, had to and virtual learns we're seen function the as between down second up, territories the you've companies the a person we've they settlements, hold used is mix we runway virtually, – we and XXXX. we which or Zoom. fairly in-person our industry a our terms about force, in in holding we SG&A costs feel affected growth in due events balance have return to ready we some come do promoting, most the ability the lockdown.

Greg Gilbert

Thank you.

Operator

go comes from question next Please ahead. of Leerink. The Fadia Ami

Ami Fadia

Good for Thanks question. taking the Two questions. morning.

Just the opportunities with your product for your over with next portfolio CNS adding -- other on on Zomig, you some an availability that the expectations some August can of to the expiry opportunities availability into And for you to and the of add Chintu, year? What's portfolio? that the you specifically comment of Chirag next comment can assets new few Chintu, XXXX. then on could commitment to months the

any and might if Specifically, respiratory and XX us the expectations be color on get when able give Copaxone Thanks. XX-mg for you can product, you also additional then approved? to

Chirag Patel

This Ami. Chirag. you, is Thank

And have CNS We're cells. for whatever the fits mentioned, companies as you lead priority looking our at various So products, -- neurology top as Rytary from our opportunity, a with is we M&A that's product. know, the perspective. and fill

add the movement or PD We category. disorder particularly will on to to

So we've active been on that front.

building pipeline disorder We an we would if the partnership, which looking are partnership. new to our Chintu and also movement the out more with with build product turning overall, to complement cells. can example, launches. for external organic is KXXX see neurological we're and product I'll over

Chintu Patel

Yeah. Hi. Good morning, Ami.

products. nine in portfolio, spoken solid confident -- of as we diverse are we mainly are in And a have we complex So have area. the XX months very a before, next we our and to those have very about launching nonoral remaining products seven

ophthalmics launches topicals in good up in have We transdermal. and coming

done the As far we of Rytary are second half be this as time, the optimistic XXXX are glatiramer, giving we a cautiously launch. regarding have we -- it But that there we like as expect will detail. we'll but be than at to seems before. not the product, any end of And towards to we more launch, over XXXX closure, get provide what more also color go

Ami Fadia

Thank you.

Operator

comes Stanicky Markets. Capital Randall Please go ahead. of question next The RBC from

Randall Stanicky

questions. taking Great. Thanks my Two questions. for

fourth implied for up. guidance, next consensus based is implies year? quarter a the EBITDA step a run good on rate First, I think that

think to you that there And to there's about picture as topic digital to continues Chirag, out would And a Thanks. that evolve could on in some you also opportunity, therapeutics terms we or of the you one the bigger you question traditional if least drugs. branded at I moving ways years? helpful. ask who your of business called pipeline out to build pursue what a landscape help peers maybe Has could adding technologies other here. understand differentiate see of time Amneal be that? of pipeline. to the looked parts your that five want drug us the opportunities an then secondly, a that So, three to are, The has and At just to lead there has obviously, specifically building are XXX(b)(X) complex next products, as

Chirag Patel

get products excellent your your first let on We'll question back me I'll on Randall. you, Thank Tasos. the to question. and out to portfolio, But pass later complex on; -- building that

strong As -- Amneal's see before, we therapeutic a complex have -- stands have diverse base categories. R&D, as we mentioned we of products, have generics

So, generics. well we're on set

every be refreshing will our We pipeline year.

Amneal? have Now, we than generics. additionally how We grow do

biosimilars, It are slow is be focus one more business. on competitive. would which the ramp So, excited be up. mentioned, Specialty I It would Therefore, it is. we

We two and have been products, we Unithroid -- Rytary. have

pipeline. basically KXXX in at We're as have drug way pipeline, you are the We side in the can I XX molecules, categories. at lesser to looking XX effects one it, the developed that years new older years ago, (b)(X)'s have look more in ago, as apply the taking well technologies to patient which as know, make deliver products the to convenience. And technologies, delivery IPXXXX XXX(b)(X) --

which delivery applying years, is introduce build we seven see opportunities. And can growth. drug products. next products six working of is every what move more we that we build and And it's knowledge programs it five on see tremendous technology-based out can we the systematic experience we this and and years, take year not a as mature, other pipeline, throughout that new years, and technologies we our -- we're multiple to So, and are thing in into

answers -- are hope not It it. keep add the multiple we products we're have so far. is have mind; your over Generics. therapeutic of the we our years, in where we on question business. that areas taking have five I and Amneal, and Specialty seen keep is we this business, eyes where we next constantly growing a stable and But we business Generics positioned can So, year, every doing

Chintu Patel

I'm wanted complex. technology I sorry expand just on to and our

they As Chirag a need customized better have but are said, are the address deliver were proprietary give certain bring efficacy to many good many to a not developed we platform in-house them developed Randall, I On diversified which portfolio, that entire And spectrum weighing and a right great our to to about, body complex, they're properly have of to for asset, talked products because complex using market technologies, deliver in KXXX molecule, to XXXX(b)(X) technology the and products also a the profile. second human we way. a right? there product

under that platforms is to of and repurpose on life to bring market to many better that provide we'll and means. a expand we products few have So, those technology delivery evaluation, great quality through drug and

laser-sharp are on you, Tasos. our Thank using please. we platforms. unique focused Go ahead, a very XXX(b)(X) by So,

Tasos Konidaris

Randall. hey -- So,

Just a couple thoughts. of

on what million means the you implied for at QX, implies look in between look and be year delivered we When $XXX we $XXX million. at will this guidance So, EBITDA $XX same that the full QX, million.

inventories right? QX you we're So, essentially whole-seller have COVID, QX in the and the is in strange got middle of And QX. everybody, is forth. for So with holidays election, quarter the a ballpark of you so

So more typically, creates QX just just volatility.

just Our QX. times, for feel every we ability but to perfectly good company think how QX project about we about at

end give the is we're time on. at you you sustainability we'll at yeah, give we're As guidance and what guidance the to growth, next February. it our we'll focused point right? of what on of So At so focused us, with February, in this end regards year, that's

So next management were else we're team not the we and be okay? and one of is quarter growth or anything this plan how to looking here year, the the looking growth subsides the we'll about good specialty sustainability next we you area, of for visibility and look feel to And at when very sustainability have some think COVID year. Hopefully, but business. additional as that I uphold

side, it's a Sucralfate. year, race. race, and This It’s benefited Generic the we On right? EluRyng

to have Next But pipeline. pipeline, the is competitors of new likely there, a year, the some there strength right? we're

these really where deductions year, focused can. So for rest net be on whether that has and So So expenses. to we're competition we're every investing said, And or as offsetting guide whether and portfolio. investor of right, R&D a or Chirag to good is invested gross products, dollar we finally, as will not very as us, is dollar spend the expectation continue new gets efficient the SG&A on right? the ensuring we hope be And or that our right? this our properly, not on been and focused every

gives enough about next that So think year. hopefully, you to

Randall Stanicky

-- $XXX you're you respect this don't be getting with stock QX, million. mean, today. follow-up to ask the can I annualize to Yeah. I consensus of lingering $XXX just to just because million-ish and out if in question is you, Hey, a Tasos, the EBITDA, want close I

you confidence So right some step to the a pipeline guidance confident us up? see in give be going pipeline are of sense now, do we you guys can -- can you're that think about XXXX? the have as that just a big support we decent specific step-up I not but know

Tasos Konidaris

Yes.

So, my view.

let's this comment. You was right? others, know, year and at turnaround Chintu came right? one year is, with the substantial or right, XX% the of So you August, only of that first if external new else right, of, consensus management cannot we $XXX there a look we was on in $XXX call it, midpoint a team was and number So anybody Not to from year, the million a step in Chirag EBITDA, up last range million, about increase. with about which

business. a seen we year operating growth thinking the in year the we're sustainable meaningful on how step-up are I have you year. we next this how is And So everything heard beyond. The and focus have and about think

this time. things point that's think raising tell EBITDA supplies you much right, year in this quarter, are can by not guidance worse. I getting I'm guidance, as So raising I that by And as this -- on at sure

are getting I think the better. things supplies

I'll there. So stop

Randall Stanicky

guys. Thanks, Okay.

Operator

Guggenheim. Flanders Please Dana comes ahead. question from of Next go

Dana Flanders

the for questions. first on you Thank one Great. is Generic business. My just base the

you had success a prepared year. utilization had know And capacity is contracts this winning I I think of remarks, lot mentioned pre-COVID you've back in close your to levels.

a how tailwind into that Or the year? much of had you ago. wins store towards and next OTC. the you lift launch a kind with maximization XXXX, business heading for passes quick know a be question V-gel of As brand is on month And business my look partner just then I of about second part you additional of base could Generics now? for contract the

there's channel plan that's strategy if that? curious you if Just a Thank a to around get bigger you. in, and

Chirag Patel

good Dana, and you, Thank morning.

have we a business, base portfolio. commercial So large

and have we'll We to products, continue opportunities. find XXX

the We have just best of customer the United service-focused one States. in

small many Ireland a supply they're So coming relying India, and customer large relationship. with customers, our alternate infrastructure very all on have soon. and And we U.S. deep customers three and

keep working keep on. new We'll finding So opportunities that with allows to within XXX products. customers to our us add

stable, expect product is new and the business competition base alluring and expected. Sucralfate, to we and obviously, like launches is So that grow. Not counting the

So rightfully over built portfolio proud And have we've a large done we're years, we base it. a business. the so, very, on of very it's what

the to what doing. that's capabilities, capacity, and We quality, exactly supply, have we are

based, been OTC years never by them, On ourselves. the of ANDA, one them products supplier been partner and OTC founders. rewarded great that. we are they're over through concentrated the PLD, for the basically, United believe we've we We than XX customer the Long-term and most the getting to excellent private more – team Long happens which multiple distributor with reliable which XX in for support, largest the we have have gets fully Island a OTC OTC, It's OTC, Rx and high-quality switches, launching We've years. large I relationships are We company. and supplying be a after to over very States, a second management Perrigo.

share have generic the are We retail. the already. So retail market we substantial as one introduce expanding were – we our to a first

We're multiple believe switches patient obviously, as to market more from We have RX the percentages as will, that for well share higher market inclined FDA OTC the we do to at will convenience So be in a cost. because looking would as well. of OTC.

look So, well field, We'll about very and we OTC. as partner. great have other It's that. within opportunities a into excited good a

in portfolio our expanding keep we'll OTC. So

Operator

comes Goldman go Sachs. Nathan of ahead. next from question Please The Rich

Nathan Rich

your I I'd morning. these of guys approvals to early, know seeing the kind start, share out of topic options kind curious but get commercial we're to more and for on what you these are competition. follow-up markets. there, be kind How as kind Thanks on pricing Good be strategy just high-level To market it's more about of in will Obviously, view the your question. wanted of come? I thinking building of biosimilars.

Chirag Patel

excellent question. Nathan,

We specialty are utilizing by Joe our Todisco. infrastructure-led

happen in launching is have we alternatives, oncology. relationships large – various first existing the to at we're who products three with Looking be wholesalers

in leaders, product, be of to great want happen again, resources. find need we so they approved the pill relationship. and cell, We We branded McKesson oncology, solutions. believe of you same ABC that hundreds to to is years people don't So practical enjoy a and sell a of waste

that education is think I more more. customer comfortable, get support, doctors where is what needed Joe is As is physician biosimilars, focusing and about

to what or competitive, should a model? that's players the have Macassa partnership out traditional partners, ready start what do Somewhat managed it How oncology for care the biosimilars as And the lot with I've of such become be will table. the said be the follow of creative ABC to before, stick And PBMs? work would has distribution. all more play. I on but also We we with biosimilar it would in with want laying do does large a groundwork Why products.

provide access know, you branded, and which is years. XX of and biologics, As way billion that -- to $XXX-plus to best the next affordability there's are in now next

player, hope that the in on we And it's the that's are providing more exactly Generics are fits players focused with to affordable I which Nathan. in it's excellent -- biosimilars. the affordable launch using business but opportunity, So question, fits your who mindset answers medicines.

Nathan Rich

the helpful. Thank If just I Yes. follow-up quick you. a could ask That's to business. generics on very Tasios

remarks, think like earlier levels little to prepared are sounds bit COVID. in still normal below I volumes a the due it maybe

add new a that So as state see sort steady to about a of question those I we guess kind might generic you. to launches think volumes Thank -- continue you before the just normalize fourth improve that expect as for would the into segments being, things to that? considering of quarter,

Anastasios Konidaris

So on maybe QX, half But we Really to we've looks exploding -- country COVID, it's pretty We've that, country right? somewhat nine the the I well been nine months. like of over half Now Yes. from months, our last as done than more right? right? hard perspective, mentioned the answer I right? in pretty last the think done think -- QX of before, well

So should for So have, you have some you EluRyng, that do better. -- you have think I and example, right? puts takes,

uncollect Now capacity a have bit. we

other products, of injectable that as have we pressure then But under of some may better. stay of the doing be our out kind products be people should that hospitals. So

this, and puts how Nathan. That's QX. or other some but dramatic is there takes, about one shift don't think way expect I think So we the I versus

Chirag Patel

have already patch. next lidocaine now to approved, products. we The year launched is And It's year, eight we that launched seven lidocaine the said soon. from more Yes. high-value being August next

Over the which excited on base we launches, business, very comfortable launches, stabilizing which year-over-year. can we new you have tremendous in put always this well years, opportunities exactly finding for the since and very I and keep that very keep business Amneal year, is business we we year rebuilt XXXX. So base and we've been mean, that, previous product you what pressure products, products at products, what pipeline, just Generics values. growing. and launched large And that And products it's complex more has. in have think as in can five commercial added expected feel offset have as added it pipeline, high-value competition, since on generics product is a must this about Every new new

answers that Nathan. hope that -- question, your I So

Nathan Rich

much. very Thanks Yeah.

Operator

The Prasad question of from Balaji hour. ahead. we're bottom comes seen Barclays. of the last to coming go Please I've the

Balaji Prasad

Thanks squeezing Chirag. so call I joined excuse late, slightly me for morning. the this if already. Good has asked me in Hi. been

So two questions from me.

multiple opinion our up is symposium, had just where Firstly, had that and experts We on Generic first-mover there wrapped experts a lots advantage biosimilar. strong opinion, biosimilar biosimilars. and of the the industry the

first-mover our Neulasta, want six. are in number positioning through Neupogen pick I you and able you'll your considering there barrier Filgrastim, on break number be So brains be would build to want to this multiple you year? Thank where in where your think five, injectables terms your and get the you are outlook here? side out to on thoughts on I you. moves product currently for out as of to also Secondly, next your of injectables your how

Chirag Patel

Balaji. you, morning. Thank Good

it advantage would first-mover for there stay longer will a biosimilars, absolutely You're have the and in right time.

second share. future the be captive focusing to in trying what channels up, difficult fourth respective we And on government creative do wave. definitely. not channels, first-mover, the we more to wave. opens channels, be third and that's match the if biosimilars be I are would and our do, to new in first is a plans first market in are wholesalers expect very for wave the As can will or the channels. market third, we believe fourth We difficult second, fair biosimilars say find have It will being

growing. So that's on growing. nature today, injectable, capabilities, sales, Amneal's where portfolio trials We're over focusing required and in the approximately On is complex business R&D is on. focusing than using products and five to are again, various products, again, we also we net Pipeline which do $XXX exactly that excited more, of million products years. difficult looking volume at in products, other strategies the suspension-based more grow compete bringing to injectable and first to market are very injectable,

Balaji Prasad

Thanks, Chirag.

Chirag Patel

Thank you, Balaji.

Operator

presentation. concludes attending This call. annual you our question-and-answer earnings Thank and XXXX today's quarter for today's third session

You may disconnect. now

Amneal Pharmaceuticals (AMRX) 6 Nov 202020 Q3 Earnings call transcript