This transition was highly technical in nature but has substantial cash flow benefits to our company as it enhances investor transparency and servload by having only one class of common stock. This leads me to the fourth pillar of value creation and that is deleveraging. With higher cash generation and many of the historical improvements investments to expand our portfolio and infrastructure already made, we’re in a very good position to further reduce debt. From 2019 to now net leverage has come down from 7.4 times to 4.6 times in the most recent quarter. We’re focused on delivering consistent debt reduction over the course of time and we feel confident in our ability to achieve net debt to adjusted EBITDA below 4 times in 2025. I hope this overview of the key pillars of value creation for Amneal.
Going forward, we’re confident that the increased diversification of our business strong financial performance higher cash generation and further deleveraging will create substantial value. Let me now hand it back to Chirag.
Chirag Patel: Thank you, Tasos. In summary, Amneal has never been in a better position to drive substantial sustainable long-term growth and we believe the best days are ahead for our company. Let’s now open it up Toni for Q&A.
Operator: Thank you. [Operator Instructions] We will now take our last question from Balaji Prasad from Barclays. Balaji your line is now open. Please go ahead.
Anthony DiMeo: Operator, we can go to the next participant and put Balaji back in queue. Thank you.
Operator: Okay. No problem. We will now take our next question from David [Indiscernible].
Unidentified Analyst: A couple. So, first, I wanted to ask you about AvKARE and its role in the organization going forward. I mean, is that a business that do you think might be non-core over time? How do you think about it strategically? That’s number one. Number two regarding injectables and all the launches that you signed are these mostly shortage products are — is it a mix of shortage of products and complex products? I’m just trying to understand how to think about the product mix care and injectables and what the margin structure for injectables is going to look like over time margin structure vis-à-vis your corporate margin structure? Thanks.
Chirag Patel: Hey, David, how are you? Good morning. On AvKARE as you know we are very few remaining US manufacturers. That is where most of the business is driven through TAA compliant products. So it is a strategic business for us. It grows as you can see the number of products for VARD plus we have a niche unit dose as well. And as you know we have a partner who is expert in this area is running the business. So I would — I mean, exact definition of core non-core but it is very strategic at this point for us but we are open to evaluate options in the future. It is a strong business highly profitable and we are very committed to it. The second part I’m going to pass it to two gentlemen since we have everybody today in the conference room we’re going to start with my brother and he’ll pass it to Harsher.
Chintu Patel: Hi, David. Good morning. On Injectable we have a very big portfolio and we invested for the last two years on expanding our R&D capabilities and also infrastructure. So we have a very wide variety of dosage form capabilities PFS large bags auto injectors liposomal peptides microspheres. These are complex categories and some are also volume. So we have now capabilities to play value and volume game both in the injectable space going forward where our current capacity was around $20 million — $25 million, whilst our PFS combination of different products it has gone up to about $70 million. So that’s a big shift. So second question on shortages we have about 30 products that’s pending approvals are already approved.
And the shortage products goes keep in and out but Amneal is very much passionate about addressing the shorter issue. And we — as soon as we have a product we try to help alleviate the shortages. And some of the launches your question was it’s a mix. Some are first-to-market products some are complex products like MPA multidose. So it’s a combination of both and that’s what we’ll see in coming years and we are confident to launch 20 new products also in injectable in 2024. So a very strong pipeline which we expand to about 80 products by 2025. Harsher, anything to add?
Harsher Singh: David, I’ll just build one thing to frame your comment right which is — I think shortages and complex products are not mutually exclusive. Often the biggest shortages are on complex products. As you see us launch our last six months a pretty good proxy for the portfolio, which is premixed bags electrolytes which are a structurally short category where there are structural issues in the market over the long-term that we hope to address and single product opportunities where we have structural strengths like the corticosteroids, methylprednisolone and others. But you should expect us to continue to proceed along the pathway like that.
Chirag Patel: And David on the margin.
Unidentified Analyst: If I may just – yes, final one.
Chirag Patel: Its okay. Your last point goes impact to the margin. So injectables in general and the areas we play are just they’re going to be accretive to the overall gross margin of the company. So this is one of the reasons why we think about the future we feel confident about enhancing and increasing our financials not only top line profitability and adjusted EBITDA and cash growth.
Unidentified Analyst: Okay. Got it. That was my last question. Thank you.
Chirag Patel: Thanks, David.
Operator: Thank you, David. [Operator Instructions] We will now take our next question from Leszek Sulewski from Truist.
