Amneal Pharmaceuticals Inc (AMRX)

[My2b]

Amneal Just Acquired 65% OF AvKARE 1/31/20 DOD, VA, Leader in Federal Markets

AvKARE is one of the largest private label providers of generic pharmaceuticals in the U.S. federal agency sector, primarily focused on serving the Department of Defense (“DoD”) and the Department of Veterans Affairs (“VA”). The company utilizes its relationships with more than 50 generic pharmaceutical vendors to offer a proprietary line of specially packaged products under its own labels.

We have launched 15 new generic products, including high-value first-to-market ones like NuvaRing and Carafate, have one new award for our base business, we have seen continued script growth for key specialty products Rytary and Unithroid, we have already increased our generics gross margin by 350 basis points from Q3 to Q4 2019 and continue to make progress. We have entered into a collaboration with Fosun Pharma to enter the Chinese market with certain products from our product portfolio. And we have executed on the acquisition of a majority stake in AvKARE, which diversifies our channel mix and provides an attractive durable revenue stream. As you can see our efforts are already bearing fruit. Our fourth quarter results build on the momentum from the third quarter and demonstrate that our strategies are working and these result sets up nicely to enter 2020 with strong momentum.


AvKARE has already won 34 national contracts and we expect that number to grow.

As we look ahead to our full year 2020 financial outlook, we previously expressed our expectation that 2020 would be a growth year for Amneal. That is still our expectation. We also closed the AvKARE transaction at the end of January and the expected contribution from that business for the balance of the year is reflected in our outlook.

In terms of the numbers, we expect annual revenues of between $1.88 billion and $1.98 billion, driven primarily by growth in our generic segment and the additional revenues from AvKARE. We expect adjusted gross margin between 44% and 46%, EBITDA in the range of $400 million to $450 million and adjusted diluted earnings per share of $0.45 per share to $0.60 per share based on weighted average diluted shares outstanding of approximately 300 million shares.



This info taken from february (AMRX) Q4 2019 Earnings Call Transcript..

fool.com/earnings/call-transcripts/2020/02/26/amneal-pharmaceuticals-inc-amrx-q4-2019-earnings-c.aspx