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Introduction & Market Context
Amneal Pharmaceuticals Inc (NYSE:NASDAQ:AMRX) reported solid first-quarter 2025 results on May 2, with revenue growth across all business segments and a significant jump in earnings per share. The company continues its strategic transformation from traditional generics to a diversified biopharmaceutical company focused on complex products, specialty pharmaceuticals, and biosimilars.
Despite the positive results, Amneal’s stock showed weakness in after-hours trading, declining 3.1% to $7.50, following a 1.04% gain during the regular session. This reaction comes after the company’s Q4 2024 results had also seen a negative market response despite revenue outperformance.
Quarterly Performance Highlights
Amneal reported Q1 2025 revenue of $695 million, representing a 5.5% year-over-year increase. Adjusted EBITDA rose 11.6% to $170 million, while adjusted earnings per share surged 50% to $0.21. The company also improved its adjusted gross margin by 120 basis points to 43.1%.
As shown in the following financial performance summary:
All three of Amneal’s business segments contributed to the growth. Affordable Medicines, the company’s largest segment, saw revenue increase by 6.0% to $415 million with a 230 basis point improvement in adjusted gross margin to 44.1%. The Specialty segment grew 2.9% to $108 million, while AvKARE distribution increased 6.0% to $172 million.
This performance continues Amneal’s consistent growth trajectory, as illustrated in the company’s revenue and EBITDA progression since 2019:
Strategic Initiatives
A key growth driver for Amneal is CREXONT®, its treatment for Parkinson’s Disease launched in September 2024. The product has shown strong early adoption, already capturing over 1% market share with expectations to reach 3%+ by year-end. Insurance coverage has expanded significantly from approximately 30% in December 2024 to around 60% in April 2025.
The following chart illustrates CREXONT’s prescription growth trajectory:
Amneal is also making significant strides in expanding its biosimilars portfolio. In Q1 2025, the company filed Biologics License Applications (BLAs) for two denosumab biosimilars targeting Prolia® and XGEVA®. The company plans additional filings later in 2025, including pegfilgrastim biosimilars in Q3 and omalizumab in Q4.
As shown in this comprehensive overview of the biosimilars portfolio:
Another strategic initiative is Amneal’s collaboration with Metsera to develop GLP-1 therapies targeting the rapidly growing obesity and metabolic disease market, which is projected to exceed $150 billion by 2030. Amneal is leveraging its expertise in development, manufacturing, and commercialization to position itself in this high-growth area.
Business Transformation
Amneal has successfully transformed its business from primarily oral solid generics to a more diversified portfolio of complex products. In 2019, oral solid generics represented 53% of total revenue; by 2025, this is expected to decrease to 23%. This strategic shift has enabled more sustainable growth and improved margins.
The following slide illustrates the company’s successful transformation since 2019:
The company continues to expand its complex product portfolio, with eight new product launches so far in 2025, including its fourth 505(b)(2) injectable product, BORUZU™. Amneal’s pipeline is increasingly focused on complex products, with 96% of pipeline programs being non-oral solid products.
Forward-Looking Statements
For full-year 2025, Amneal maintained its guidance of $3.0-3.1 billion in revenue, representing 7-11% growth over 2024. The company expects adjusted EBITDA of $650-675 million (4-8% growth) and adjusted EPS of $0.65-0.70 (12-21% growth).
Amneal also remains committed to deleveraging its balance sheet. The company achieved its target of reducing net leverage below 4x at the end of 2024, one year ahead of schedule. Management expects to further reduce leverage to below 3x in the next few years through a combination of EBITDA growth and debt reduction.
As of March 31, 2025, Amneal’s gross debt stood at $2,568 million with net leverage at 3.9x, unchanged from year-end 2024. The company’s operating cash flow is expected to reach $255-285 million in 2025, providing sufficient liquidity to invest in growth while continuing to pay down debt.
In conclusion, Amneal’s Q1 2025 results demonstrate continued progress in its strategic transformation toward higher-value products and therapeutic areas. While the market reaction has been cautious, the company’s financial performance shows solid growth across all segments and significant improvement in profitability metrics. The successful launch of CREXONT and expansion in biosimilars and injectables position Amneal for sustained growth in the coming years.
Full presentation:
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