BRIDGEWATER, N.J.--(BUSINESS WIRE)--Amneal Pharmaceuticals, Inc. (NYSE: AMRX) announced its results today for the first quarter ended March 31, 2020.
“We are proud of how Amneal has responded to the ongoing COVID-19 pandemic,” said Chirag and Chintu Patel, Co-Chief Executive Officers. “We mobilized quickly to ensure the health of our teams and the continued supply of medicines to patients. Our solid operational and financial performance in the first quarter reflects the strength of our differentiated platform, significant U.S. manufacturing capabilities and diverse supply chain. Building on our recent momentum, we continue to revitalize our generics business, grow our specialty franchise and strategically diversify the business. While we expect some headwinds due to social distancing and patients postponing non-essential physician visits and procedures, we are confident in our full-year 2020 guidance and in Amneal’s ability to drive long-term growth, profitability and value for our stakeholders in 2020 and beyond.”
Net revenue in the first quarter of 2020 was $499 million, an increase of 12% compared to $446 million in the first quarter of 2019, primarily due to the acquisition of 65% of AvKARE and its related entities, R&S, recently launched generic products, and growth of our Specialty segment. Net income attributable to Amneal Pharmaceuticals, Inc. of $115 million in the first quarter compared to a net loss of $48 million in prior year period, primarily due to a discrete tax benefit of $110 million from net operating loss carrybacks offsetting previously paid taxes related to the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), lower intangible asset impairment charges, and net revenue growth. Diluted EPS in the first quarter was $0.78 compared to a loss of $0.37 in the prior year period.
Adjusted EBITDA(1) in the first quarter of 2020 was $134 million, an increase of 20% compared to the prior year period, primarily due to net revenue growth and lower operating expenses. Adjusted net income(1) in the first quarter was $60 million, an increase of 43% compared to the prior year period, and primarily reflects an increase in net revenue, lower operating expenses and lower interest expense, partially offset by higher non-controlling interests due to the acquisition of 65% of AvKARE and its related entities, R&S, hereinafter referred to as “AvKARE”. Adjusted diluted EPS(1) in the first quarter was $0.20, compared to $0.14 for the prior year period.
In the first quarter of 2020, out of an abundance of caution in response to the high volatility impacting the financial markets due to COVID-19, the Company drew $300 million of its $500 million revolving credit facility. As the financial markets stabilized, the Company returned $200 million and intends to return the remaining over the next few months pending stability of financial conditions. Consequently, while the full $300 million draw down is reflected in our first quarter financials, as of today, $100 million remains in our possession.
| (1) | See “Non-GAAP Financial Measures” below. |
Maintaining Full Year 2020 Financial Outlook
Amneal is maintaining its previously provided 2020 guidance; operating cash flow excludes expected $110 million cash tax refund.
About Amneal
Amneal Pharmaceuticals, Inc. (NYSE: AMRX), headquartered in Bridgewater, NJ, is a fully-integrated pharmaceutical company focused on the development, manufacturing and distribution of generic and specialty drug products. The Company has operations in North America, Asia, and Europe, working together to bring high-quality medicines to patients primarily within the United States.
Amneal has an extensive portfolio of approximately 250 product families and is expanding its portfolio to include complex dosage forms, including biosimilars, in a broad range of therapeutic areas. The Company also markets a portfolio of branded pharmaceutical products through its Specialty segment focused principally on central nervous system and endocrine disorders.
The Company also owns 65% of AvKARE. AvKARE provides pharmaceuticals, medical and surgical products and services primarily to governmental agencies, primarily focused on serving the Department of Defense and the Department of Veterans Affairs. AvKARE is also a packager and wholesale distributor of pharmaceuticals and vitamins to its retail and institutional customers who are located throughout the United States focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing. For more information, visit www.amneal.com.
