Amneal Pharmaceuticals, Inc. (AMRX), a prominent player in the generics and specialty pharmaceuticals sector, announced a net loss in the third quarter, primarily due to increased expenses, despite a rise in revenue. However, after excluding certain items, the company's earnings surpassed analysts' expectations.
Additionally, the company has confirmed its annual outlook, aligning with market predictions.
For the quarter ending September 30, Amneal reported a net loss of $0.156 million, in contrast to a net profit of $9.682 million in the same period the previous year. Earnings per Class A share came in at $0, compared to $0.06 per share the previous year.
Net income attributable to non-controlling interests fell to $11.913 million, from $15.351 million the prior year.
Overall, net income decreased to $11.757 million from $25.033 million in 2023. Excluding specific items, the company's adjusted earnings were $50.552 million, or $0.16 per share, compared to $60.305 million, or $0.19 per share, the previous year.
Thomson Reuters surveyed four analysts who predicted an earnings estimate of $0.13 per share for the company, generally excluding special items.
The income before taxes amounted to $15.423 million, lower than last year's $22.957 million.
The liability under the tax receivable agreement increased significantly to negative $11.327 million from $0.677 million a year earlier. Interest expenses also rose to $65.511 million from the previous year's $50.909 million.
Revenue increased to $702.468 million from last year's $620.040 million, exceeding the Street's expectation of $696.8 million.
The Generic segment's revenue rose to $427.345 million, up from $390.857 million the previous year, propelled by successful new product launches and biosimilars.
The Specialty segment generated $115.638 million in revenue, an increase from $97.304 million in 2023, buoyed by promoted products in neurology and endocrinology, including the recent launches of CREXONT and ONGENTYS for Parkinson's disease.
Net revenue for AvKARE also saw a 21 percent increase, driven by growth across its distribution and government label sales channels.
Looking forward to the full year, Amneal maintains its projection of adjusted earnings per share between $0.57 and $0.63, with revenues ranging from $2.70 billion to $2.80 billion, and capital expenditures projected between $60 million and $70 million.
On average, analysts expect the company to post earnings of $0.6 per share on revenues of $2.76 billion for the year.
