Amneal Pharmaceuticals, Inc. (NYSE:AMRX) Q2 2023 Earnings Call Transcript

Chintu Patel: Yes. Hi David. Regarding the 2024 outlook from new launches, we still expect to continue to launch about 30 or so new products next year. We have about 92 ANDAs pending with FDA. And as we have shifted and focused heavily on diversifying our portfolio into non-oral solid, obviously, we will have many more injectable products being launched next year, plus with our expanded capabilities in our [indiscernible] and Palli plant and our Onco plant and all other plants are FDA approved. We expect at least close to half of those products to be launched in injectables. But same time, we are also excited about some of the other complex product launches that is coming in 2024. Hopefully, in inhalation, we expect to launch two products.

So, I think we are well positioned over ‘24 and even beyond, continue to launch 30 or so generic products and continue to be more in the complex area. So, 2024, including the biosimilar uptake, our new launches, we have growth across our portfolio, David.

David Amsellem: That’s helpful. Thanks. And if I may just sneak in a follow-up, with all the new launches, is it fair to expect some degree of margin expansion, particularly given that there seems to be a lean into more complex product launches next year. I know it’s a little early to talk about guidance or anything, but just directionally, how should we think about margins?

Tasos Konidaris: Hey David, this is Tasos. Directionally, I think it will be kind of flat to up, right. So, we agree with you, that’s where our expectation would be to be flat or up. And whether or not it’s flat or up, I think it’s really kind of, number one, the cadence, number two is kind of the size of the opportunity and number three, the price deflation, right. So, in a world where the price deflation kind of continues to come down and the cadence of new products kind of ramps up, that’s what’s going to drive the kind of the margin expansion over the course of time.

David Amsellem: Okay. That’s helpful. Thank you.

Operator: We currently have no further questions, so I would like to hand over back to the management team for closing remarks.

Chirag Patel: Thank you. As we shared on our second quarter call today, very good first half with momentum across our businesses and pleased to raise the 2023 guidance. Amneal in 2023 is a fundamentally different company than 2019 when Chintu and I returned. We have properly diversified our essential medicines portfolio and have expanded in a number of key areas such as biosimilars, more specialty pipeline and complex GX products and international operations. We are well positioned for sustainable growth and meaningful EBITDA acceleration in near-term with key catalysts adding to our growth profile, all of them now. Thank you very much and have a great day.

Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.