Amneal Pharmaceuticals at Goldman Sachs Conference: Strategic Growth Vision

On Tuesday, 10 June 2025, Amneal Pharmaceuticals (NASDAQ:AMRX) presented its strategic vision at the Goldman Sachs 46th Annual Global Healthcare Conference. The company outlined ambitious growth plans, focusing on biosimilars and GLP-1 therapies, amid both opportunities and challenges. Amneal aims to become a top-five global player in the biosimilars market within five to seven years, while addressing potential risks like pharma tariffs.

Key Takeaways

• Amneal is targeting significant expansion in the biosimilars market, aiming for a top-five global position.
• The company is leveraging its partnership with Metsera to focus on GLP-1 therapies, particularly in India.
• Financial strategies include a disciplined approach to capital allocation, with a $200 million annual R&D budget.
• Amneal plans to launch a DHE auto-injector for migraines, projecting peak sales of $50-100 million.
• The company is actively lobbying against potential pharma tariffs, citing risks to the supply chain.

Financial Results

Amneal operates primarily in the affordable medicines space, with 92% of prescriptions filled by generics. The company reported current EBITDA margins of approximately 22%, with expectations for growth. Key financial highlights include:

• $200 million annual R&D budget aimed at affordable innovations
• Potential peak sales of $300-500 million for Crexon and $50-100 million for the DHE auto-injector
• Expected revenue boost from biosimilars starting in 2027
• A $300 million investment in the Metsera partnership
• Growth drivers offsetting the loss of exclusivity for key products without impacting earnings

Operational Updates

Amneal is focusing on expanding into biosimilars and GLP-1 therapies as key growth areas. The company expects to become a top-five global biosimilar player within five to seven years. Operational highlights include:

• Building a GLP-1 business with marketing rights in 20 countries through the Metsera partnership
• Manufacturing peptide API and injectable capacity of 100 million units
• Preparing to launch a DHE auto-injector for migraines with a September timeline
• Potential vertical integration of the biosimilars business through the acquisition of Kashiv Bioscience
• Exploring branded specialty drugs in neuroendocrinology and oncology

Future Outlook

Amneal’s future strategies focus on core generics, biosimilars, GLP-1 therapies, and specialty drugs. The company expects substantial revenue growth in biosimilars from 2027 to 2035. Future plans include:

• Targeting multiple pipeline assets for biosimilars, aiming for 15-25 assets
• Pursuing global opportunities for Crexon, including launches in Europe, Canada, Latin America, India, and Southeast Asia
• Exploring oral formulation enhancements with Metsera for improved bioavailability
• Building a manufacturing plant for 100 million units and injectable plants in India and the US

Q&A Highlights

During the Q&A session, Amneal addressed several key topics:

• Lobbying against pharma tariffs, arguing they won’t bring manufacturing back to the US
• Focusing on less competitive biosimilar products and aiming for interchangeability
• Providing updates on the Metsera partnership’s economic opportunity in Q3 and next year
• Highlighting strong performance of Crexon and plans for the DHE auto-injector launch
• Emphasizing a disciplined approach to capital allocation and potential acquisition of Kashiv Bioscience

Amneal Pharmaceuticals’ detailed strategies and growth plans can be further explored in the full transcript of the conference call.

Full transcript - Goldman Sachs 46th Annual Global Healthcare Conference:

Matt Delatorre, Generics Pharma Analyst, GS: Okay. Great. Well, thank you everyone for joining us today. My name is Matt Delatorre, and I’m the generics pharma analyst here at GS. And we’re we’re very pleased to have Amneal Pharmaceuticals with us for this session with Sharag Patel, cofounder and co CEO, and Tassos Konidaris, the chief financial officer.

Great. So maybe maybe just to get started, you know, how about just level set us on where Amneal is headed from kind of a long term perspective? You know, talk about your your vision for the company over the next five years and and what you all are most focused on from an execution perspective over the next, say, twelve to eighteen months.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Great. Well, of all, thank you, Goldman, for, start covering the essential industry. It was like we were neglected. Now it seems like more, investment banks are covering us. As you know, 92% of prescriptions are filled by generics drugs, which we call it now affordable medicines group because it includes biosimilars and certain hospital injectables, which are five five b twos.

So it’s affordable medicines, extremely important for any nation. And for our country, it 92% prescriptions, that’s where the all the heavy load happens. And it without the affordable medicines industry, the cost would be so high, the the shortages. So it is extremely important industry for the national security, for the country, for the patient. So, we’re glad to be one of the leader.

And your the five years vision, ten years vision, as you know, we have a very core business is is very strong. And on top of that, where we are focusing is on expanding biosimilars, which we see a huge opportunity. There are about 100 molecules, only probably 20 active 20 molecules are actively being worked on. 80 are not being worked on. Those could be somewhere between 500,000,000 annual revenue to, 4,000,000,000.

For some odd reasons, they’re not been worked on because and I tell you why. Because a lot of investment required seven years, only big companies can sustain it. So Amneal has entered very smartly in biosimilars. You expect us to be the top five players globally in next five to seven years, and this is a multibillion dollars in making for us. At the right time, we’ll disclose the right pipeline.

We would have to, at some point, do our own manufacturing, our own r and d on top of what we in license. So make to be top five, we will need to have a pipeline which is 15 assets, 20 assets, 25. Every year, we’re adding three, four. So that one category of growth over the next five to ten years, huge category. And it it’s a very complicated manufacturing, and you will see when we are able to announce that how long the investment have been and what the r and d just like what we did in complex g x, how we can lead the r and d.

The growth is in our GLP one, the Metsera announcement, which is very we do have a generics approval, which is a BIDA. On top of that, we have Metsera transaction, which we can talk more about it. And they’re making a very good progress in their pipeline. We not only we supply, we are the majority supplier for them globally, but we also got marketing rights for 20 countries. If you just look at India, which we have marketing.

Right? India has almost, some hundred and thirty four million people could be using the next generation diabetes and weight management therapy. Even, let’s say, and we did further survey that how many people can afford $6,700 per year, not per month. About 55,000,000. So there’s a huge market just for GLP ones.

And let’s see the filing timing, when can we file in India with global filing, the same product. And oral will also increase the the utilization of the product. So huge growth in GLP. We could do work for Lilly’s and Noah’s as well. Generics, we’re not too excited on GOP.

So that’s another big business being built. You’re not you’re not excited? No. It’s so much innovation is going on. The pricing going to come down, then generic sema, your they price it at a where wherever they’ll price it versus the even Mounzaro is will be priced competitively.

There’ll be entrance will be it’d be more consumer products. So they would want the latest and greatest, like, MedCera has a monthly injector. Right? So month monthly injectable is injection is better than the weekly. The side effect profile could be better.

And then maintenance dose could be just once a day pill. And then the specialty side that we have successfully launched cracks on, and now we’re launching Brickyard. And at the right time, we’ll add one or two more products or disclose what we work within our r and d, and we may in license some some assets. Those are high probability of success assets, so they’re not they’re more five five e twos. So this is this is the vision for next, five to ten years.

Completely be focused on core business, build a solid biosimilar business, expand in the GLP space, and this both are global, and work on the pipeline optionality with the specialty drugs. Because we only have budget of $200,000,000 per year on r and d, so we are to do affordable innovations. Somehow, we are to figure it out. And these are the the assets which are you know, could do 100,000,000 to $500,000,000 in revenue, which which are many meaningful to us, not for big pharma.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm. Mhmm. Great. Maybe, you know, just kinda staying high level here. You know, you you all have operated, you know, the key player in The US generics market, you know, for more than twenty years now.

Maybe just help us put the current market environment in perspective and just, you know, kinda how you think about how it evolves over the next five to ten years. Just kinda Yeah. So current market is back to the I I would call it the way it was running

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: in 02/1415, all those years, that you will have typical four to 6% price erosion. You can offset that by volume increase in existing products once you have a large portfolio like we do 280 medicines. And then the LOEs are double next five years than the last five years, even in small molecules. So the there’s a plan double in size. So there are more opportunities to go after.

So the business is going to keep expanding. The government is keep incentivize the affordable medicines industry to do more. Incent I mean, and and directing FDA to approve the products faster interchangeability. So so I see a huge growth in even small molecule, the the large molecule biosimilars, both would be tremendous. And the the leading companies will have both, like us and Teva and Sandoz.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Great. And then some of the Indian companies will enter. Right. Right. Right.

Matt Delatorre, Generics Pharma Analyst, GS: And maybe kinda just shifting to policy macro perspective. It’s I know I realize it’s a little bit difficult to handicap at this point, but maybe kinda what is your what is your base case assumption at this point on, you know, likelihood, timing, and scope of potential pharma tariffs? Oh, boy.

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: Look. We’ve

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: been very active lobbying against. We we have submitted so much and had many calls with the White House. They’re smart people there. So, hopefully, they get it that putting tariffs on generic industry will not bring the manufacturing back to The United States. We have given them the mathematics behind it, that 25% tariff, the cost of producing here, it it’s more than that.

Because products are already cheap. Right? It’s already very affordable in The United States. MFN doesn’t apply to us. Right.

You I hope they put MFN for generics. We’ll try to increase the price. So that will not happen. So we hope tariffs don’t come. And we have given you no.

You can’t win your argument if you just say don’t do it. What are the government here to understand why they’re insisting on this? We, as a country, are in a clear present danger. We in case something happens globally, we make zero antibiotics here. Zero.

No KSM, no API, no finished products. So what happens in a war scenario? What happens in the pandemic scenarios? Can we put our security of our nations that the health security, and patient at risk at all, even if that risk is only one percent, do not have antibiotics here? And it’s not a rocket science to make these.

It doesn’t take it’s not as complex as chip manufacturing. Right? We’ll need lots of water, electricity, corn to start making the c six APA for the penicillin g. And for cephalosporin, you make that seven ACA, and all used to be done here. So we need to bring that back.

So we have put a and a certain other essential medicine. And the government is the biggest buyer of the medicines, about 40 to 50% on a molecule. Why can’t congress pass a bill for essential medicines for whatever number, 7,200 molecules? The government would buy me American made products. Other countries do that to have a local manufacturing and supply security.

Because executive orders will not I mean, those would be temporary. Tariffs would be also temporary or not effective. This way, you create the whole market. So we gave them alternate solution, which is being, thought about it. And

Matt Delatorre, Generics Pharma Analyst, GS: So your your view is that they’re they’re sympathetic or or have an understanding of the risk here.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Correct. Yeah. I’m only speaking for the generics industry, affordable medicines. Mhmm.

Matt Delatorre, Generics Pharma Analyst, GS: And then maybe, you know, let’s say for whatever reason, you know, they that’s not fully appreciated. Tariffs are are implemented. How are you how do you feel like Amneal’s positioned to kinda handle the potential impact?

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Well, Amneal wins. Right? Because we still have two thirds, almost 70% of our production value is United States. We’re the only loss warriors keeping the manufacturing here, large plants in The United States, and somehow still competing. We did put up multiple plants in India.

So we’ll have some impact, but we would offset that by working with our three big buyers saying, hey. You gotta take some cost. And they already are open to it. And we would bring if it makes sense, we have a one big idle plant. So we could bring some commodity tablet manufacturing and capsule manufacturing to that plant.

It it has a capacity of 7,000,000,000 units in Long Island. Mhmm. We can restart it. So we could we could we have multiple choices. But as a industry, I don’t hope and wish that that tariffs will come by.

They shouldn’t because it could create a interruption in supply chain. And already, we have, like, 270 products and shortages. Right. Right. And mostly, it’s economics.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm. Great. Great. Great. So we we kinda talked about, you know, your strategy in biosimilars and the GLP space as kinda, like, the key growth levers.

I guess, do you would you wanna talk further about how you kinda see the the biosimilars market evolving over the next decade? And and I think you all have mentioned that you’re really targeting kind of that that smaller 1 to 5,000,000,000 in the medical benefit segment, and you’re you’re probably gonna stay away from the large PBM.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Well, like, look at ZOLED. ZOLED, 50% is PBM driven, 50% is buy and bill. So it we’ll we’ll do both, because we need to expand the portfolio. And we’re PBMs, we already been working with them, these big buyers for twenty years. We sell 280 products to them.

Huge relate relationship, mutually trusted over the years. So we sit in a even better position than, let’s say, Sandoz or Sultrion because they don’t have those 280 products to offer like we do. And we have pipeline every year. We’re offering 30 more products. And we are US focused, obviously.

Today, they’re all 100% United States. So I it that so how it will evolve, Matt, it’s going to be you can follow, right, that some companies, the branded side would be aggressive in defending them, their market share. Maybe for a year or two years, you saw that in Humira, and now it’s going away. Buy and bill, you can start building the market share, but it takes couple of years to get to the 20%, 30% market share, or 40%. In PBM, you can get it day one just like generics because CVS would move all their patient to the to your product on biosimilars.

And the the acceptance of biosimilars is there already, and FDA with congress is working on a bill to all products will be interchangeable just like the NDAs. Right. So that all government knows to save $100,000,000,000 a year, in savings for from the biosimilars, you need to really support the industry. And the brand companies cannot keep playing games, right, unless they want to be become a biosimilar company. Because you they have to focus on innovation, the next generation therapy.

Why would they keep defending? Because we will our cost of entering this is is now it’s going to be $6,080,000,000 a molecule. If they want to keep playing the pricing game, we we will win just like in generics. Initially, you know, in nineties, they were defending and then they gave up in mid in 02/2010. By ’15, the g x got 90%, pretty much 92%, sometimes 95 more of total market.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Biosimilar, same thing. Maybe this 180% will go to biosimilar player. Brand will hang on to 20%. So markets are opening. The people always forget that 100 molecules to go after.

It’s so complicated manufacturing and r and d. So you you you will not see 150 players from India, China, Europe, everywhere jumping in like small molecules. You’ll see, currently, there are about 10 probably or even less. Used to be fifteen, twenty, but they disappeared or consolidated. Mhmm.

So it’d be a small amount of players and plenty of products to to choose from. So if you smartly choose, you’ll have two competitors. ZOLAR is two two competitors to begin with. There’s another product called Lorenz. There’s two people working on it.

The multiple products, only one or two companies, and there are many zero companies are working on. People are underestimating Biosimilars. Biosimilars. Mhmm. Okay.

Matt Delatorre, Generics Pharma Analyst, GS: So you

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: So you have to stay put for ten years. Right. And you’ll see the big revenue pick up from ’27, ’28, ’29, 30, 30. Mhmm. Huge.

All the way to 30 to 35. I mean, we have analyzed all ten years.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm. Mhmm. Okay. So it sounds like you guys are kind of agnostic then to the channel Agnostic. And the size you’ll pursue kind of all over.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Yeah. We’re more focused on less competitive products. So probably Now we may have to offer Keytruda Opdivo globally because everybody needs it. Mhmm. Because remember, the main reason, the fun part in biosimilars is you’re creating more access.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: That’s a good work. Right. Right? More patient are taking products.

Matt Delatorre, Generics Pharma Analyst, GS: Any thoughts on the private lay is private label a necessity now in the PBM market? Or or yeah.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Yeah. They they want private label. Whatever way they wanna do it. We have worked with them for twenty years very closely.

Matt Delatorre, Generics Pharma Analyst, GS: We’ll keep working with them. Okay. Okay. Maybe switching to GLP one space and and the Mentzerra partnership. So, obviously, you have that manufacturing and commercialization partnership.

For the the the phase two GLP one asset. I know they recently had some data this past week, which looked very good.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Yeah. With

Matt Delatorre, Generics Pharma Analyst, GS: Amylin. With Amylin. Yeah. Maybe kinda just, you know, remind us, walk us through the opportunity set within this partnership, and then maybe we can talk about kinda the strategy within Glip more broadly.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Great. So this is the time in the industry this this kind of partnership was formed. It’s a more trusted relationship. I know the founders of MedCera for more than fifteen years. And they know Amneal.

They’ve been to our plans. They see, wow. This is better than brand company’s plans. It was a a Long Island plant, and all of our plans are awesome. And they we we told them what we can do because we have thousand scientists.

We have a lot of CMC expertise. We have worked on 300 molecules, more than the CMO will work on or brand companies will work on. So we have a lot of various expertise on device side, drug device combination, peptide, synthesis. Right? We’re working with them on enhancing the their oral formulation for more bioavailability.

And it looks promising. And then, we work we’re working on, getting higher yield on peptide manufacturing. So we we we also have API manufacturing expertise. So we have seventy, eighty DMFs and two big API plans. So we’re building a API plan for peptides, building the 100,000,000 units, the injectable, the whether PFS or auto injectors plant, right, in one campus.

We’ll have some manufacturing in The United States as well. And these two plants are going in India, And then, we’ll, we’ll have it in The US as well. Oral solids, we have enough capacity US, in The US. So most likely, we’ll we’ll do it here, and we don’t need to build anything For the neural peptide. For oral peptides.

Awesome. So we’re well set there. It’s a the tricky part the key part is can we get the higher yield because of oral manufacturing, we’re gonna need lots of peptides in tons. In injectables, you can get by with kilos. Kilos, you can make it in solid phase chemistry.

Matt Delatorre, Generics Pharma Analyst, GS: And

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: for the oral, the five, ten tons, Lily successfully just did it. They have higher yield API now. You’re gonna need five tons, 10 tons. To make that, you need to use the liquid phase as well, solid phase, liquid phase, molecular high wind, next generation technology to have right yield and lower carbon footprint as well. Yeah.

So it’s a very unique partnership, and we got 20 countries marketing. Right? So that Mhmm. Mhmm. That would be substantial revenue for Amneal.

Matt Delatorre, Generics Pharma Analyst, GS: Yeah. It sounds like India is kinda maybe the most mature of the biggest. Of the biggest. How how big do you think that could be? And I’m I

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: mean, as just I mean, as I said, it’s about 50,000,000 patient can take it at $6,700 per year. So that’s the total market. And, obviously, the the big guys, Lily and Noah, would be taking a big market share, then generics, semaglutide will take some market share. So we’ll we’ll do our best. We will partner with a local big company as well because they have already 1,500 sales reps in Oh, attribution kind of.

Matt Delatorre, Generics Pharma Analyst, GS: Yeah. Yeah. Oh, interesting. Yeah.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: We’ll try to maximize where it could be could be really significant revenue driver.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm. And

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: we we we purposely, Matt, haven’t said a lot about the economic opportunity that we see as Amneal as it relates to Meterra. Right? You didn’t know enough about what data they’re gonna sow. And and so now that we’re beginning having a little bit more clarity from Metsera’s product in terms of, their data, their timelines, and so As we think about q three and into next year, that gives us an opportunity to frame the economic opportunity for our investors. Right?

Because there are multiple ways we, the economics either, you know, both on the gross margin, right, in terms of the gross margins we will be making by producing the product as well as the economic opportunity in India as well as any any royalties and so So we’ll be able to provide our investors the same way we said about our new product. Right? DHE Auto Injector, the same way we framed that opportunity, plus 50 to a $100,000,000 peak year revenue, the same way we framed, the Crexon opportunity as, you know, 3 to $500,000,000 peak year revenues, we’ll be able to provide our investors with our thoughts in the and and and the and the specifics behind the Metsera opportunity over the next few years. Will will will

Matt Delatorre, Generics Pharma Analyst, GS: that be a investor event or on earnings?

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: We’ll see. So we’ll see. I I you know, in order to kinda have a a a big investor event, you need multiple things to talk to. So so as we’re having the DHE and the correction of the material thing as a company, we’re having more and more things to talk to investors. Like, think of it as an investor day or an r and d day.

So we just need so that that’s an option. The other way is through our normal communications in terms of the earnings calls and and and so but we just need a few more months to see if a little bit more of their data.

Matt Delatorre, Generics Pharma Analyst, GS: Yeah. Yeah. And and as we think about

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: You just said our EBITDA margins right now are at about 22%. Right? We expect that to grow over the course of time. The EBITDA margin will be accretive even on the CDMO business because as you said, there there are just not enough incremental OpEx.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Mhmm.

Matt Delatorre, Generics Pharma Analyst, GS: Great. And then you talked on this a little bit just a few minutes ago, but is it is it fair to say that peptide manufacturing is still quite difficult It is. For for the industry? It’s not Yeah.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Nobody’s making interns Uh-huh. Today. No one’s making interns. No. They’re all kilos.

Uh-huh. 100 kilos, 200 kilos, and capacity is locked out by by Lilly’s staking as much as they find. No one tries to do it on their own. Then there’s kind of companies. Like, they would need Vikings, and others will need capacity.

Right. Generics will need capacity. Mhmm.

Matt Delatorre, Generics Pharma Analyst, GS: So it’s gonna be a a supply constraint Yeah. Market as far as you’re concerned.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Yep. So the okay. Because you’ll see 10 generic file filer in semaglutide. How many have their own API?

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: They’re all buying from one or two sources.

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: An injectable, it’s fine because it’s in kilos. Right? Because it’s lower. Injectables is easier. Yeah.

Matt Delatorre, Generics Pharma Analyst, GS: We lower yield than before.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Well, you you’re using very small amount of API versus tablets because of bioavailability and injectable would be 100 here. It would be if we get to 12%, you’re using 10 times more API. Mhmm.

Matt Delatorre, Generics Pharma Analyst, GS: And it’s daily tablets. Great. Great. Maybe switching over to the the branded portfolio. So Crexon, obviously, off to a strong start and and is ahead of expectations in terms of, I think, both share and coverage at this point for the year.

I guess, how should we think about the trajectory over the next couple years? And, you know, how confident are you guys in hitting that peak guidance of 3 to 500,000,000?

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Very confident with what we have seen last six months. It’s just amazing patient testimonials. The MDS, They come visit us, and they have set up some of them have set up a Klexon clinics. So they’re they’re that excited. And the the the the biggest name, doctor Hauser called it a miracle formulation.

It’s a superb absorption. So, obviously, this is the best product. As you know, Mike, this is the course of their disease there to take this to until there is some revolution on a some cure. Mhmm. But that’s far away, and this maintains their daily lives really well.

We meet so many patients. So our coverage is awesome. It’s almost commercial side. We pretty much covered 90%. And med the Medicare side, we’re working through it now.

Medicare is about 60% usages in Medicare Mhmm. Medicaid, forty percent’s commercial. So we are the the and its prices pricing we priced it appropriately because we saw that Iteri, like, thirty five percent patient were unable to get the medicine because of the co pay. So we priced it properly, so co pay became lower. And we’re getting favorable coverage.

The we went after now General Neuro. We never did that with Rytray.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: So we expanded the market. We’re going direct to patient. We’re going to General Neuro. It’s creating a lot of buzz out there. So we we comfortably will achieve over 3 to 500 and obviously shoot for hire.

And also, we have a a European partner. We’ll be launching it in a in a few months as well. Our Canada and Latin America partner will be launching it soon. We have India, we’re launching on our own. And then we just licensed to Southeast Asia.

Only two countries big countries left is China and Japan. So we’ll

Matt Delatorre, Generics Pharma Analyst, GS: license that out. The three to 500 is is that purely US? And then the Well, we’ve

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: been kind of very conservative, so we don’t say that until we are very alright because we we want to set the right expectations. So right now, consider overall. But there’s plenty of opportunity in correct.

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: The the the the the correction will highlight what a lot of people, I guess, more and more people appreciate, our story, which is there is no lack of growth drivers. Mhmm. The the only conversation we’re having about our business, it is just the pace of growth, whether or not it is up or growing double digits. Right? Whether or not is the launch of correction, whether or not it does 300 to 500, and it’s a big range.

I get that. But the more important point is we’re able to more than offset the LOE of Raetai, one of our largest products, without, you know, without, you know, tanking the earnings. Right? A lot of our competitors, a lot of other companies, when they lose the l o they lose exclusivity for one of their key products, the company catches a cold. Right?

And and our ability, we’re even able to grow in spite of that. And the same thing for the affordable medicines. That business is growing as well. So I think it just highlights our ability to have multiple growth drivers because in any business, not everything hits on all cylinders all the time. Right?

So our ability to overcome different challenges, which would not be start ups or not, which is incredible amount of confidence in our ability to overcome those and continue to drive, you know, value creation from the patient perspective with innovations like correction, innovations like DHE, for the patients and the payers, frankly. Right? We talked about biosimilars. Right? So, being able to kinda serve all of those customer segments.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm. Mhmm. And then you you mentioned DHE. You guys have guided to 50 to a 100 there. Yeah.

Is that is it fair to assume that that kinda ramps over the next three to four years and Yeah. You could get that This week. Yeah. You

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: could get that. Yeah. That’s exciting. The the the commercial team is is is psyched. You know, they’re part of their planning, you know, the launch planning right now.

It’s a great pink device. Yeah. I can use Those are package of four. Right? So it’s exciting.

So we like products. We like brands. Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: And looking to launch probably September September timeline. Yeah. It’s approved, and it’s a useful innovation, I call it. Mhmm. It was much needed for the severe migraine or migraine patient overall and cluster headache patients.

Matt Delatorre, Generics Pharma Analyst, GS: Mhmm.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: It’s they have to go drive to clinic, hospitals. Take could take two, three, four hours to administer same drug. Now they can do it at home. Boom. And it’s the GLP looking pen, beautiful device.

Mhmm. Easy administration on administration on a tie just like EpiPen. Mhmm. So you could think of it as EpiPen of migraine.

Matt Delatorre, Generics Pharma Analyst, GS: Very nice. Maybe moving to to capital allocation. You know, you you all have made it very clear that you want to vertically integrate your biosimilars business by I I believe that the plan is to acquire Kashiv Bioscience.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: We haven’t been public about it, but that’s most likely target.

Matt Delatorre, Generics Pharma Analyst, GS: That’s most likely target. Yeah. How much I guess, how much of a priority is this? And and could you tell us more about just why you wanna vertically integrate here?

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Right. So the in licensing deals are far and few in between because everybody Teva Teva has its own. Teva wants from AlloTag and they could pay higher and they get global rights. We don’t we’re not set up for globally. So we’re we’re only negotiating US rights.

If we don’t control our r and d and manufacturing, I think in a long term, two margins will be difficult for biosimilar business to keep it healthy, making sure you survive on ups and downs of the markets, ASP adjustments, three forty b pricing. So having one margin, those companies will be the top 10 or top five Uh-huh. That they control most especially the biggest market like United States. You’re doing we’re doing our own marketing, our own r and d, our own manufacturing. Globally, we can license out, receive the the r and d fees back also from the international partners and the royalties and supply price.

So which becomes a global business for us, we add multiple pipeline asset at once. This cash use we’ve been working on it for the last nine years. And the reason we set up Kashy as a separate company, we were Amneal and Kashy were both private companies also cofounded by us, Kashy, me and my brother. And we put our personal investment there because it was going to take too long. We knew that.

And we can’t just keep hitting Amneal with all this risk, CapEx, everything. So we invested separately and matured the business, and it’s the right time to now integrate it.

Matt Delatorre, Generics Pharma Analyst, GS: I see. So the plan would be bring in r and d and discovery Manufacturing. Manufacturing. The three manufacturing plants. Commercialize it in The US and out license it to European players.

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: European, Asian, South America, everywhere. Great.

Matt Delatorre, Generics Pharma Analyst, GS: And then how should we think about the value of this deal and kind of what are your what’s the base case in terms of how you would finance this?

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Well, we haven’t commented any of those, but we’ll

Tassos Konidaris, Chief Financial Officer, Amneal Pharmaceuticals: yeah. We’re we’re we’re we’re all of this kind of speculation. Right? So so what I would say is a couple of things. So incredibly focused on driving both top line and bottom line and cash generation.

Right? That doesn’t that doesn’t change, and and nothing adds shareholder value than organic revenue growth. So that kinda that’s a key priority for us, number one. Number two also is I think we have been incredibly the also deleveraging continues to be, a key priority over the course of time. We have brought leverage down, and you can expect that to to continue.

The thing we do, I think we have been very disciplined. So difference, think about the biosimilars business we have built so far. Right? We have built that that business by not allocating a lot of capital, doing smart deals that even though we’re splitting the margin, right, got but we have not spent hundreds of millions of dollars like others building that business. Think of it the material deal.

Right? We got access to a huge market, and the way we structure that deal, right, it’s a, call it, $300,000,000 investment, which for us is probably, at the end of the day, when you think about NetSera contributing a 100, getting another 80 plus million dollar from the Indian government, dramatically reduce our own costs, over the course of time. So I think every deal we will do will be done in a way, right, that doesn’t that doesn’t that doesn’t impede our ability to deliver. Right? It’s in a place that we can feel we can execute and gives us access to big markets that we can grow over the course of time.

So so that’s why I would say To be disciplined, Dean. We we, you know, we’ll get to be creative. We’ll have to be creative. We will have to be creative and disciplined, and that’s no different than what we have done all the other deals.

Matt Delatorre, Generics Pharma Analyst, GS: Interesting. So it could consist of some kinda like milestones or, or royalties or

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: Multiple ways. Have control over both companies. We can

Matt Delatorre, Generics Pharma Analyst, GS: do We we will have to do it. And then, you know, you also

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: have But we want to keep reducing our leverage. Reducing. You know, obviously, this is highly accretive with the EBITDA growth, the pipeline. Mhmm. It’s huge.

So but we don’t want to add on the leverage.

Matt Delatorre, Generics Pharma Analyst, GS: Right. Right. But maybe just lastly, you guys have also flagged branded specialty drugs in in neuroendocrinology and and oncology as as a focus. Coming up. Coming

Sharag Patel, Cofounder and Co-CEO, Amneal Pharmaceuticals: up. So we’re working on certain device based product like a PHE, and then we have a couple of value added onco products now because we know how to sell in oncology now. So why not add few specialty assets? Right.

Matt Delatorre, Generics Pharma Analyst, GS: The same call points. Right. Right. Right. Great.

Well, with that, I think we’re out of time. But Perfect timing. Rog and Tafas very much. Thank you so much. You being here.

Thank you, Mike. Thanks for having us.

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