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Amneal Pharmaceuticals Inc (AMRX)
NASDAQ:AMRX
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Amneal Pharmaceuticals (AMRX) AI Stock Analysis

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AMRX

Amneal Pharmaceuticals

(NASDAQ:AMRX)

Rating:66Neutral
Price Target:
$10.00
▲(3.95% Upside)
Amneal Pharmaceuticals' overall stock score is driven by strong technical momentum and positive earnings call insights, indicating growth potential. However, high valuation concerns and profitability challenges weigh on the score. The company's robust cash flow and strategic initiatives provide a solid foundation for future growth.
Positive Factors
Business Positioning
AMRX's generics business is increasingly well-positioned with a portfolio more focused on complex products and biosimilars, supporting sustainable growth over the next several years.
Product Launch
With the Crexont launch off to a solid start and continued momentum elsewhere across the portfolio, analyst upgrades AMRX to OW from N.
Negative Factors
Market Caution
There is a more mixed view on Crexont and more caution than the Street on overall Gx fundamentals longer-term.

Amneal Pharmaceuticals (AMRX) vs. SPDR S&P 500 ETF (SPY)

Amneal Pharmaceuticals Business Overview & Revenue Model

Company DescriptionAmneal Pharmaceuticals, Inc., together with its subsidiaries, develops, licenses, manufactures, markets, and distributes generic and specialty pharmaceutical products for various dosage forms and therapeutic areas. The company operates through three segments: Generics, Specialty, and AvKARE. The Generics segment develops, manufactures, and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products, and transdermals across a range of therapeutic categories. The Specialty segment is involved in the development, promotion, distribution, and sale of branded pharmaceutical products with focus on central nervous system disorders, endocrinology, parasitic infections, and other therapeutic areas. It also offers Emverm, a chewable tablet for the treatment of pinworm, whipworm, common roundworm, common hookworm, and American hookworm in single or mixed infections; Rytary to treat Parkinson's disease; and Unithroid for the treatment of hypothyroidism. The AvKARE segment provides pharmaceuticals, medical and surgical products, and services primarily to governmental agencies, the Department of Defense, and the Department of Veterans Affairs. It is also involved in the wholesale distribution of bottle and unit dose pharmaceuticals under the AvKARE and AvPAK names, as well as medical and surgical products; and packaging and wholesale distribution of pharmaceuticals and vitamins to its retail and institutional customers. The company sells its products through wholesalers, distributors, hospitals, chain pharmacies, and individual pharmacies. It operates in the United States, India, Ireland, and internationally. The company was formerly known as Atlas Holdings, Inc. and changed its name to Amneal Pharmaceuticals, Inc. in 2018. Amneal Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Bridgewater, New Jersey.
How the Company Makes MoneyAmneal Pharmaceuticals generates revenue primarily through the sale of generic and specialty pharmaceuticals. The company's revenue model includes several key streams: sales of generic drugs, which make up a substantial portion of its income, and sales from branded products, including niche and complex generics. Amneal has established partnerships with various healthcare providers, distributors, and pharmacy benefit managers, which facilitate the distribution of its products. Additionally, the company may engage in licensing agreements and collaborations with other pharmaceutical firms, contributing to its revenue through upfront payments, royalties, and milestone payments. Factors such as market demand for affordable medications, the company's ability to successfully launch new products, and the maintenance of production efficiency significantly impact its earnings.

Amneal Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
Amneal's earnings call reflected strong financial performance and growth prospects, with successful product launches and strategic debt refinancing. Despite some challenges in specific segments, the overall outlook remains positive.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Amneal reported Q2 revenues of $720 million and adjusted EBITDA of $184 million, with a 13% growth in adjusted EBITDA and a 56% increase in adjusted EPS.
Raised 2025 Guidance
Amneal increased its 2025 financial guidance, with adjusted EBITDA raised by $15 million and adjusted EPS by $0.05.
CREXONT's Successful Launch
CREXONT, a treatment for Parkinson's disease, exceeded expectations with a U.S. market share aim of over 3% by year-end and an anticipated peak sales of $300 million to $500 million.
Product Pipeline and Launches
Continued strong pipeline with 20-30 new product launches expected annually, including the Brekiya autoinjector for migraines and biosimilars.
Debt Refinancing
Successfully refinanced $2.7 billion of debt, reducing annual interest costs by $33 million and extending maturities to 2032.
Negative Updates
Challenges with RYTARY
RYTARY faces potential generic competition, which is expected to impact revenues in the coming years.
AvKARE Revenue Decline
AvKARE revenues declined by 4% in Q2, although gross margin and operating income increased.
Tariff Uncertainties
Potential tariffs could impact the pharmaceutical industry, though Amneal is relatively insulated due to its U.S.-based manufacturing.
Company Guidance
During Amneal Pharmaceuticals' Second Quarter 2025 Earnings Call, the company reported strong performance metrics, including revenues of $720 million and an adjusted EBITDA of $184 million. Amneal raised its 2025 guidance, projecting revenues between $3 billion to $3.1 billion and adjusted EBITDA in the range of $665 million to $685 million. The company highlighted its diverse growth drivers, such as the CREXONT launch for Parkinson's disease, which is on track to achieve U.S. peak sales between $300 million and $500 million, and the upcoming commercial rollout of Brekiya autoinjector for migraines. Additionally, Amneal emphasized its strategic partnership with Metsera in the GLP-1 space and anticipated strong biosimilar growth, with expectations of having six marketed biosimilars by 2027. The company also highlighted its operational excellence, noting significant gross margin improvements and a reduction in net leverage to 3.7x adjusted EBITDA. The earnings call underscored Amneal's commitment to being America's leading affordable medicines company while maintaining a robust focus on innovation and manufacturing excellence.

Amneal Pharmaceuticals Financial Statement Overview

Summary
Amneal Pharmaceuticals shows strong revenue growth and improved leverage, but profitability remains a challenge. The company's cash flow position is robust, providing a solid foundation for future investments and debt management. Continued focus on enhancing operational efficiency and profitability will be crucial for sustaining growth and improving shareholder returns.
Income Statement
65
Positive
Amneal Pharmaceuticals shows a strong revenue growth trajectory with a TTM revenue growth rate of 80.3%, indicating robust sales expansion. However, the net profit margin remains very low at 0.12%, suggesting challenges in translating revenue growth into profitability. The gross profit margin of 37.67% is healthy, but the EBIT and EBITDA margins, at 7.77% and 18.17% respectively, indicate room for operational efficiency improvements.
Balance Sheet
55
Neutral
The company's balance sheet shows a significant improvement in its debt-to-equity ratio, now at 0.14 in TTM, reflecting reduced leverage compared to previous years. However, the return on equity is low at 1.86%, indicating limited returns for shareholders. The equity ratio of 30.98% suggests a stable capital structure, but the historical high leverage poses a potential risk.
Cash Flow
70
Positive
Amneal Pharmaceuticals demonstrates strong cash flow management with a 12.48% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 241.40% indicates efficient cash generation relative to net income. The free cash flow to net income ratio of 76.76% suggests good cash conversion, supporting financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.85B2.79B2.39B2.21B2.09B1.99B
Gross Profit1.07B1.02B820.57M791.46M783.95M628.39M
EBITDA583.88M439.77M399.76M150.43M401.10M345.61M
Net Income3.38M-116.89M-83.99M-129.99M10.62M91.06M
Balance Sheet
Total Assets3.42B3.50B3.47B3.80B3.94B4.01B
Cash, Cash Equivalents and Short-Term Investments81.19M112.42M93.74M27.80M248.96M341.38M
Total Debt2.58B2.59B2.75B2.85B2.88B2.94B
Total Liabilities3.47B3.55B3.45B3.59B3.57B3.66B
Stockholders Equity-112.53M-109.27M19.78M298.42M360.34M344.93M
Cash Flow
Free Cash Flow262.48M243.18M276.39M-25.50M189.18M312.81M
Operating Cash Flow351.08M295.10M345.58M65.10M241.82M379.00M
Investing Cash Flow-81.12M-63.00M-69.19M-174.31M-194.18M-317.55M
Financing Cash Flow-234.40M-211.79M-212.57M-106.62M-138.12M131.81M

Amneal Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.62
Price Trends
50DMA
8.63
Positive
100DMA
8.08
Positive
200DMA
8.14
Positive
Market Momentum
MACD
0.31
Positive
RSI
68.88
Neutral
STOCH
63.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRX, the sentiment is Positive. The current price of 9.62 is above the 20-day moving average (MA) of 9.36, above the 50-day MA of 8.63, and above the 200-day MA of 8.14, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRX.

Amneal Pharmaceuticals Risk Analysis

Amneal Pharmaceuticals disclosed 54 risk factors in its most recent earnings report. Amneal Pharmaceuticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Amneal Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.55B39.706.38%5.55%1145.24%
68
Neutral
$1.36B10.9318.32%1.37%-18.10%
66
Neutral
$3.00B1,492.19106.97%9.81%
66
Neutral
$2.08B-2.82%38.68%-160.14%
51
Neutral
$7.92B-0.43-41.69%2.21%22.29%-1.85%
51
Neutral
$3.20B-1.32%4.92%-2.32%35.46%
50
Neutral
$2.43B38.30128.44%98.37%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMRX
Amneal Pharmaceuticals
9.62
1.23
14.66%
PRGO
Perrigo Company
22.65
-3.88
-14.62%
SUPN
Supernus Pharmaceuticals
46.00
12.16
35.93%
ANIP
ANI Pharmaceuticals
95.35
34.84
57.58%
AMPH
Amphastar Pharmaceuticals
29.42
-15.96
-35.17%
ALVO
Alvotech
8.33
-2.75
-24.82%

Amneal Pharmaceuticals Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Amneal Pharmaceuticals Reports Strong Q2 2025 Results
Positive
Aug 5, 2025

Amneal Pharmaceuticals reported strong financial results for the second quarter of 2025, with a net revenue of $725 million, marking a 3% increase from the previous year. The company also announced a successful debt refinancing, which reduces interest costs and extends maturities, positioning Amneal for long-term growth. The quarter was highlighted by the commercial success of CREXONT® for Parkinson’s disease and the FDA approval of Brekiya® autoinjector for migraines, contributing to a 23% increase in specialty net revenue. Amneal raised its full-year 2025 financial guidance, reflecting confidence in its diversified pharmaceutical business and growth strategies.

Private Placements and FinancingBusiness Operations and Strategy
Amneal Pharmaceuticals Secures $2.1 Billion in Loans
Positive
Aug 1, 2025

On August 1, 2025, Amneal Pharmaceuticals LLC, a subsidiary of Amneal Pharmaceuticals, Inc., secured $2.1 billion in new seven-year term B loans and completed a $600 million offering of senior secured notes, both aimed at refinancing existing debts and enhancing financial flexibility. This strategic financial restructuring is expected to extend debt maturities, reduce interest margins, and provide additional operational flexibility, potentially strengthening the company’s market position and benefiting stakeholders.

Private Placements and Financing
Amneal Pharmaceuticals Prices $600M Senior Notes Offering
Neutral
Jul 24, 2025

On July 24, 2025, Amneal Pharmaceuticals announced that its subsidiary priced a $600 million offering of senior secured notes due 2032, reduced from the initially planned $750 million. The company plans to use the proceeds from these notes and a $2.1 billion term loan to refinance existing loans and repay outstanding amounts, with the offering expected to close on August 1, 2025, subject to customary conditions.

Private Placements and Financing
Amneal Pharmaceuticals Seeks $1.8 Billion in New Loans
Neutral
Jul 21, 2025

On July 21, 2025, Amneal Pharmaceuticals announced that its subsidiary, Amneal Pharmaceuticals LLC, is seeking to borrow $1.8 billion in new seven-year term B loans and has launched a $750 million private offering of senior secured notes due 2032. The proceeds from these financial activities are intended to refinance existing term B loans, repay a portion of outstanding amounts under its ABL facility, and cover related fees and expenses. These transactions are subject to market conditions, and there is no assurance of their completion. The notes will be offered to qualified institutional buyers and non-U.S. persons, and will not be registered under the Securities Act of 1933.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Amneal Pharmaceuticals Board Restructuring Amidst Financial Growth
Positive
Jul 21, 2025

Amneal Pharmaceuticals announced a reduction in its Board of Directors from six to five members due to a decrease in the ownership of Class A Common Stock by the Amneal Group. This led to the resignation of Emily Peterson Alva from the Board on July 16, 2025. The company also reported preliminary financial results for the second quarter of 2025, showing a net revenue increase of approximately 3% and a significant rise in income before taxes compared to the same period in 2024. The results highlight Amneal’s continued financial strength and deleveraging efforts, with expectations to meet or exceed full-year guidance. The quarter also saw the FDA approval of Brekiya® autoinjector and strong commercial uptake of CREXONT®, positioning Amneal well for future growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025