Amneal Pharmaceuticals, Inc. (NYSE:AMRX) Q1 2023 Earnings Call Transcript

Chintu Patel: …ANDAs at FDA. And we continue to file about, 10 or 15, every year. And now we are at scale with 19, production line. So to get to from our current revenue of about $170 million to $180 million, if you can just do the math, 32 pending and 10, 15 and also all these are in a differentiated dosage from — many are complex, drug device combination, cartridges, LVP bags, peptides. We have some of the maybe long-acting depot injections. So we are very well positioned. And we have now redundancy and a resiliency in our manufacturing footprint, which is the biggest challenge in injectable. So I think we are very excited with all the lines now going live and we’ll be commercializing in third quarter from our newly FDA-inspected site. And this gives us the leverage in multiple areas. Plus these areas are also very lucrative for our international expansion.

Balaji Prasad: Thanks, Chintu. That’s helpful.

Operator: Our next question comes from Chris Schott with JPMorgan. Please go ahead. Chris, your line is open.

Chris Schott: Great. Thanks very much. Just two questions on guidance for me. Maybe first on the generic gross margin trends. Can you just elaborate a little bit more in terms of what happened to gross margins this quarter and just how we should think about generic gross margins for the balance of the year? I know you mentioned there were some onetime issues, but I don’t think you’ve had gross margins to slow for a few years and I was toing my hands around what exactly is happening there and probably more importantly just how to think about the next few quarters? And the second was on revenue growth. It seems like you have obviously a very good start to the year with this quarter. But I think the go-forward guidance implies more modest revenue growth for the remainder of the year. Again, just a similar question there, just help me a little bit about the cadence of revenue growth as we think about the next few quarters and kind of drivers there? Thank you.

Tasos Konidaris: Hey, Chris, this is Tasos. Good morning. Yes. I mean as you know gross margin at any given quarter can fluctuate a little bit. For us it was just certain products small product discontinuations as I mentioned and related kind of upsell license product that we had to write-off and just timing of our production line. So you are correct. It was slightly lower than it has been in previous quarters. But from our perspective, I expect — I fully expect Q2 a step-up in the above 40%. And in terms of kind of full year expectations from a generic gross margin I think we’re going to be around 42% in line with prior year. So that’s around on the gross margin. In terms of — from a revenue growth perspective, Chirag you want to take it?

Chirag Patel: Sure. So Chris, we’ve been speaking for the last few years and you’ve been following Amneal this is the rocket about to be fired now right because it’s well-positioned to drive sustainable top-line growth and meaningful adjusted EBITDA acceleration in 2023, 2024 and beyond. And let me tell you how it is happening so — and how diverse and how good that is that we’re not relying on a two specialty products to make our life or our company right? We have Generics portfolio of 270 products driving durable profitable growth number three in the United States in value, number four in volume. We are the only company that grew where everybody degrew. And we will continue to grow in next several years. Highly productive innovative R&D pipeline launching 20 to 30 new products every year 30-plus, we — look at the diversity we have.