Active Mover: Amneal Pharmaceuticals Inc. (NYSE: AMRX)

BRIDGEWATER, N.J., July 25, 2019 – Shares of Amneal Pharmaceuticals Inc. (NYSE: AMRX) declined -1.23% to $3.63. The stock grabbed the investor’s attention and traded 1.267M shares as compared to its average daily volume of 1.65M shares. The stock’s institutional ownership stands at 95.90%.

Amneal Pharmaceuticals, Inc. (AMRX) reported a loss of $47.90M in its first quarter. The Bridgewater, New Jersey-based company said it had a loss of 37 cents per share. Earnings, adjusted for one-time gains and costs, were 14 cents per share. The results missed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 18 cents per share.

First Quarter 2019 Performances:

Net revenue in the first quarter of 2019 was $446.0M, an increase of 62.1% compared to the prior year period, primarily due to the combination with Impax and the acquisition of Gemini in May 2018, as well as the benefit of new generic product launches throughout 2018 and into 2019. Net loss was $125.0M in the first quarter of 2019 compared to net income of $52.0M in the first quarter of 2018, primarily attributable to $76.0M of intangible asset impairment charges, incremental expenses related to the combination with Impax and acquisition of Gemini, site closure costs of $10.0M and royalties of $21.0M. Additionally, the Company incurred $22.0M of incremental interest expense, $14.0M of unfavorable foreign exchange impact and $6.0M of restructuring and other charges. Diluted EPS in the first quarter of 2019 was a loss of $0.37. Diluted EPS in the first quarter of 2018 is not available as Amneal Pharmaceuticals LLC was a privately-held company for the period presented.

Combined net revenue in the first quarter of 2019 was $446.0M, an increase of 4.9% compared to the prior year period, due to an increase in net revenue from the Generics segment. Combined adjusted net income in the first quarter of 2019 was $42.0M, an increase of 0.8% compared to the prior year period. Combined adjusted EBITDA in the first quarter of 2019 was $112.0M, an increase of 16.8% compared to the prior year period. The increase in combined adjusted EBITDA was primarily due to higher revenues and cost synergies from the combination with Impax. Combined adjusted diluted EPS in the first quarter of 2019 was $0.14, compared to $0.14 in the first quarter of 2018, primarily due to higher revenues offset by incremental interest expense of $12.0M, net of tax, or approximately $0.04 per diluted share in the current year period related to the combination with Impax.

Generics net revenue of $382.0M increased 39.0% for the first quarter of 2019 compared to the prior year period. The increase is primarily attributable to the combination with Impax, the contribution from more than 40 new product launches throughout 2018 and six in 2019, and favorable volume growth driven by sales of Levothyroxine, Guanfacine and Hydroproxyprogesterone Caproate Injection, partially offset by declines in sales of Oseltamivir and Aspirin Dipyridamole ER Capsules due to lower volumes and pricing pressure. Generics combined net revenue in the first quarter of 2019 was $382.0M, an increase of 7.3% compared to the prior year period, primarily due to favorable volume growth as noted above.

Generics operating income for the first quarter of 2019 was a loss of $55.0M compared to operating income of $85.0M for the first quarter of 2018, primarily due to the charges and expenses as noted above, as well as an additional $23.0M of in-process research and development impairment charges and $3.0M of integration related expenses.

Specialty combined net revenue in the first quarter of 2019 was $64.0M, a decrease of 7.4% compared to the prior year period, driven primarily by lower revenue from Albenza® as a result of the loss of exclusivity in September of 2018, partially offset by higher revenue from Rytary® and Unithroid®.

Specialty combined operating income for the first quarter of 2019 was $5.0M, a decrease of $20.0M compared to the prior year period, primarily due to higher amortization expenses and lower revenue as noted above. Specialty combined adjusted operating income for the first quarter of 2019 was $29.0M, a decrease of $2.0M compared to the prior year period, primarily due to lower revenue.

General and administrative and other operating expenses in the first quarter of 2019 increased to $44.0M compared to $21.0M in the prior year period, primarily due to the combinations with Impax and Gemini in 2018. General and administrative and other operating expenses on a combined basis in the first quarter of 2019 decreased to $44.0M compared to $53.0M in the prior year period, primarily due to lower acquisition, transaction-related and integration expenses.

AMRX has a market value of $1.09B while its EPS was booked as $-0.54 in the last 12 months. The stock has 297.94M shares outstanding. In the profitability analysis, the company has gross profit margin of 39.10% while net profit margin was -3.80%. Beta value of the company was 1.37; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.50.

Ron Barnett

I am Ron Barnett and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions.

I am the driving force behind Digital Market News with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Healthcare” category.

Address: 1091 Stratford Park, St Meinrad, IN 47577, USA
Phone: (+1) 812-836-1428
Email: ronbarnett@digitalmarketnews.com
Ron Barnett
Ron Barnett

Ron Barnett

I am Ron Barnett and I’m passionate about business and finance news with over 4 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind Digital Market News with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of “Healthcare” category. Address: 1091 Stratford Park, St Meinrad, IN 47577, USA Phone: (+1) 812-836-1428 Email: ronbarnett@digitalmarketnews.com

Leave a Reply

Your email address will not be published. Required fields are marked *