Amneal reports 3% revenue growth in Q2, advances deleveraging

BRIDGEWATER, N.J. - Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) announced Monday preliminary second-quarter results showing revenue of $720-730 million, representing approximately 3% growth compared to the same period in 2024. The company has demonstrated consistent growth, with revenue increasing ~13% over the last twelve months to $2.8 billion. According to InvestingPro data, the company maintains a "GREAT" overall financial health score of 3.2 out of 5.

The pharmaceutical company reported income before taxes ranging from $45 million to $56 million for the quarter ended June 30, a significant increase from $20 million in the year-ago period. Adjusted EBITDA grew approximately 13% to between $180 million and $185 million. Based on InvestingPro’s Fair Value analysis, Amneal appears undervalued at current levels, with analysts setting price targets between $11 and $12.

Amneal highlighted continued progress in reducing its debt burden, with gross leverage decreasing to 3.8x as of June 30, down from 4.1x at the end of 2024. Net leverage improved to 3.7x from 3.9x during the same period, which the company attributed to higher profitability and ongoing debt reduction. The company’s strong free cash flow yield and improving debt metrics are among several positive indicators identified in InvestingPro’s comprehensive analysis, which includes over 30 additional financial metrics and insights available to subscribers.

The quarter also saw regulatory advancement with the FDA approval of Brekiya autoinjector for acute treatment of migraine and cluster headache in adults. The company noted strong commercial uptake of Crexont and plans for a biosimilar BLA submission for a proposed alternative to Xolair in the fourth quarter of 2025. With a gross profit margin of ~36.5% and expected profitability this year, analysts are closely monitoring the company’s product pipeline developments.

"Based on our performance year-to-date and multiple growth drivers, we expect to meet or exceed our full year 2025 guidance," stated Chirag and Chintu Patel, Co-Chief Executive Officers and Co-Founders, according to the press release. The company’s optimistic outlook aligns with InvestingPro’s analysis, which indicates expected net income growth and an 8% revenue growth forecast for 2025.

Amneal plans to report complete second-quarter financial results on August 5, 2025. The company cautioned that the preliminary results remain subject to adjustment as financial close procedures are completed.

The preliminary financial information includes non-GAAP measures such as adjusted EBITDA, which excludes certain expenses including interest, depreciation, amortization, stock-based compensation, and other specified items.

In other recent news, Amneal Pharmaceuticals has announced several significant developments. The company reported positive phase 3 results for ADL-018, a biosimilar to Novartis’s XOLAIR, achieving primary and secondary endpoints in a clinical trial. Amneal plans to submit a Biologics License Application to the FDA by late 2025. Additionally, the FDA approved Amneal’s prednisolone acetate eye drops, with a commercial launch set for the third quarter of 2025. The approval expands their Affordable Medicines portfolio, with U.S. annual sales for prednisolone acetate reaching approximately $201 million.

Amneal also received FDA approval for its Brekiya autoinjector, a novel treatment for migraines and cluster headaches, set to be available in the latter half of 2025. In financial maneuvers, Amneal seeks to borrow $1.8 billion in new term loans and has launched an offering of $750 million in senior secured notes. These proceeds aim to refinance existing loans and cover related expenses. Furthermore, Goldman Sachs initiated coverage on Amneal with a Neutral rating, citing a strong product pipeline as a growth driver. The analysts expect Amneal’s generics segment to exceed consensus estimates by 2027, supported by its focus on biosimilars and sterile injectables.

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