‒ Q2 2024 Net Revenue of $702 million; GAAP Net Income of $6 million; Diluted Income per Share of $0.02 ‒

‒ Adjusted EBITDA of $162 million; Adjusted Diluted EPS of $0.16 ‒

‒ Raising 2024 Full Year Guidance ‒

‒ CREXONT^® U.S. FDA approval represents an exciting new long-term growth driver ‒

Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) ("Amneal" or the "Company") announced its results today for the second quarter ended June 30, 2024.

"Amneal achieved strong revenues and adjusted EBITDA in the second quarter, and we are pleased to raise full year 2024 guidance driven by broad-based growth across our business. Amneal is a diversified and growing global pharmaceuticals company built on our core strengths in quality, innovation and operational execution. Coupled with this week's approval of CREXONT for Parkinson's disease, Amneal is well positioned to continue delivering durable long-term growth. We are excited about the big opportunities ahead as we focus on the most important areas of medicine to create value for patients, providers and all stakeholders," said Chirag and Chintu Patel, Co-Chief Executive Officers.

Second Quarter 2024 Results

Net revenue in the second quarter of 2024 was $702 million, an increase of 17% compared to $599 million in the second quarter of 2023. Generics net revenue increased 14% driven primarily by biosimilars and new product launches. Specialty net revenue increased 7% driven by promoted products in Neurology and Endocrinology. AvKARE net revenue increased 33% driven by continued growth across its sales channels.

Net income attributable to Amneal Pharmaceuticals, Inc. was $6 million in the second quarter of 2024 compared to $12 million in the second quarter of 2023.

Adjusted EBITDA in the second quarter of 2024 was $162 million, an increase of 11% compared to the second quarter of 2023, reflective of strong revenue performance partially offset by the impact of business mix on gross margins and higher commercial spend to support new products.

Diluted income per share in the second quarter of 2024 was $0.02 compared to $0.08 for the second quarter of 2023, primarily due to lower net income. Adjusted diluted earnings per share in the second quarter of 2024 was $0.16 compared to $0.19 for the second quarter of 2023 due to the aforementioned factor.

The Company presents GAAP and adjusted (non-GAAP) quarterly results. Please refer to the "Non-GAAP Financial Measures" section for more information. In the tables provided below, GAAP to non-GAAP reconciliations are presented.

Raising Full Year 2024 Guidance

The Company is raising its previously provided full year 2024 guidance.

	Updated Guidance	Prior Guidance
Net revenue	$2.70 billion - $2.80 billion	$2.55 billion - $2.65 billion
Adjusted EBITDA ⁽¹⁾	$610 million - $630 million	$580 million - $620 million
Adjusted diluted EPS ⁽²⁾	$0.57 - $0.63	$0.53 - $0.63
Operating cash flow ⁽³⁾	$280 million - $320 million	$260 million - $300 million
Capital expenditures	$60 million - $70 million	$60 million - $70 million

⁽¹⁾		Includes 100% of Adjusted EBITDA from the AvKARE acquisition.
⁽²⁾		Accounts for 35% non-controlling interest in AvKARE. Updated guidance and prior guidance assume weighted-average diluted shares outstanding of approximately 320 million and 317 million for the year ending December 31, 2024, respectively.
⁽³⁾		Does not contemplate one-time and non-recurring items such as legal settlements and other discrete items.

Amneal's 2024 estimates are based on management's current expectations, including with respect to prescription trends, pricing levels, the timing of future product launches, the costs incurred and benefits realized of restructuring activities, and our long-term strategy. The Company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company cannot provide a reconciliation between non-GAAP projections and the most directly comparable measures in accordance with GAAP without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments, legal settlements, and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results.

Conference Call Information

Amneal will host a conference call and live webcast at 8:30 am Eastern Time today, August 9, 2024, to discuss its results. The live webcast and presentation will be accessible through the Investor Relations section of the Company's website at https://investors.amneal.com. To access the call through a conference line, dial (833) 470-1428 (in the U.S.) with access code 462066. A replay of the conference call will be posted shortly after the call and will be available for seven days. For a list of toll-free international numbers, visit this website: https://www.netroadshow.com/events/global-numbers?confId=52762.

About Amneal

Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX), headquartered in Bridgewater, NJ, is a global pharmaceuticals company. We make healthy possible through the development, manufacturing, and distribution of a diverse portfolio of over 280 generic and specialty pharmaceuticals, primarily within the United States. In its Generics segment, the Company is expanding across a broad range of complex product categories and therapeutic areas, including injectables and biosimilars. In its Specialty segment, Amneal has a growing portfolio of branded pharmaceuticals focused primarily on central nervous system and endocrine disorders, with a pipeline focused on unmet needs. Through its AvKARE segment, the Company is a distributor of pharmaceuticals and other products for the U.S. federal government, retail, and institutional markets. For more information, please visit www.amneal.com.

Cautionary Statement on Forward-Looking Statements

Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Such forward-looking statements include statements regarding management's intentions, plans, beliefs, expectations, financial results, or forecasts for the future, including among other things: discussions of future operations; expected or estimated operating results and financial performance; and statements regarding our positioning, including our ability to drive sustainable long-term growth, and other non-historical statements. Words such as "plans," "expects," "will," "anticipates," "estimates," and similar words, or the negatives thereof, are intended to identify estimates and forward-looking statements.

The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events, including with respect to future market conditions, company performance and financial results, operational investments, business prospects, new strategies and growth initiatives, the competitive environment, and other events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company.

Such risks and uncertainties include, but are not limited to: our ability to successfully develop, license, acquire and commercialize new products on a timely basis; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to obtain exclusive marketing rights for our products; our revenues are derived from the sales of a limited number of products, a substantial portion of which are through a limited number of customers; the impact of a prolonged business interruption within our supply chain; the continuing trend of consolidation of certain customer groups; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; our dependence on information technology systems and infrastructure and the potential for cybersecurity incidents; our ability to attract, hire and retain highly skilled personnel; risks related to federal regulation of arrangements between manufacturers of branded and generic products; our reliance on certain licenses to proprietary technologies from time to time; the significant amount of resources we expend on research and development; the risk of claims brought against us by third parties; risks related to changes in the regulatory environment, including U.S. federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to Food and Drug Administration product approval requirements; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; our dependence on third-party agreements for a portion of our product offerings; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; our potential expansion into additional international markets subjecting us to increased regulatory, economic, social and political uncertainties; our ability to identify, make and integrate acquisitions or investments in complementary businesses and products on advantageous terms; the impact of global economic, political or other catastrophic events; our obligations under a tax receivable agreement may be significant; and the high concentration of ownership of our Class A common stock and the fact that we are controlled by the Amneal Group. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, including under Item 1A, "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.

Non-GAAP Financial Measures

This release includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income and adjusted diluted EPS, which are intended as supplemental measures of the Company's performance that are not required by or presented in accordance with GAAP. Adjusted diluted EPS reflects diluted earnings (loss) per share based on adjusted net income (loss), which is net loss adjusted to (A) exclude (i) non-cash interest, (ii) GAAP provision for (benefit from) income taxes, (iii) amortization, (iv) stock-based compensation, (v) acquisition, site closure expenses, and idle facility expenses, (vi) restructuring and other charges, (vii) charges related to certain legal matters, including interest, net, (viii) asset impairment charges, (ix) change in fair value of contingent consideration, (x) increase in tax receivable agreement liability, (xi) system implementation expense, (xii) other and (xiii) net income attributable to non-controlling interests not associated with our Class B common stock, and (B) include non-GAAP provision for income taxes. Non-GAAP adjusted diluted EPS for the three and six months ended June 30, 2024 was calculated using the weighted average fully diluted shares outstanding of Class A common stock. Non-GAAP adjusted diluted EPS for the three and six months ended June 30, 2023 was calculated using the weighted average diluted shares outstanding of Class A common stock and assuming all shares of Class B common stock were converted to shares of Class A common stock as of January 1, 2023.

Management uses these non-GAAP measures internally to evaluate and manage the Company's operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company's board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company's financial condition and operating results facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company's financial performance, results of operations and trends while viewing the information through the eyes of management.

These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company's GAAP results; no non-GAAP measure should be considered in isolation from or as alternatives to any measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company's business.

A reconciliation of each historical non-GAAP measure to the most directly comparable GAAP measure is set forth below.


Amneal Pharmaceuticals, Inc. Consolidated Statements of Operations (unaudited; $ in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net revenue	$	701,780		$	599,046		$	1,360,971		$	1,156,586
Cost of goods sold		451,833			379,025			872,964			758,379
Gross profit		249,947			220,021			488,007			398,207
Selling, general and administrative		116,462			105,570			229,057			207,666
Research and development		36,054			37,799			75,352			76,489
Intellectual property legal development expenses		1,042			820			2,026			2,464
Restructuring and other charges		220			82			1,690			592
Change in fair value of contingent consideration		—			(6,364	)		100			(3,907	)
Charges related to legal matters, net		699			2,017			95,058			1,581
Other operating expense (income)		—			13			—			(1,211	)
Operating income		95,470			80,084			84,724			114,533
Other (expense) income:
Interest expense, net		(65,719	)		(50,857	)		(131,422	)		(100,172	)
Foreign exchange (loss) gain, net		(262	)		421			(1,459	)		2,322
Increase in tax receivable agreement liability		(13,444	)		(405	)		(15,392	)		(1,231	)
Other income, net		4,360			417			8,432			4,782
Total other expense, net		(75,065	)		(50,424	)		(139,841	)		(94,299	)
Income (loss) before income taxes		20,405			29,660			(55,117	)		20,234
Provision for (benefit from) income taxes		3,618			(23	)		9,774			645
Net income (loss)		16,787			29,683			(64,891	)		19,589
Less: Net income attributable to non-controlling interests		(10,793	)		(17,766	)		(20,758	)		(14,615	)
Net income (loss) attributable to Amneal Pharmaceuticals, Inc.	$	5,994		$	11,917		$	(85,649	)	$	4,974

Net income (loss) per share attributable to Amneal Pharmaceuticals, Inc.'s Class A common stockholders:
Basic	$	0.02		$	0.08		$	(0.28	)	$	0.03
Diluted	$	0.02		$	0.08		$	(0.28	)	$	0.03
Weighted-average common shares outstanding⁽¹⁾:
Basic		309,117			153,738			308,198			152,928
Diluted		318,957			154,887			308,198			154,575

⁽¹⁾

Following the implementation of the Reorganization on November 7, 2023, all outstanding shares of Old PubCo Class A Common Stock and Old PubCo Class B Common Stock were exchanged for an equivalent number of shares of Class A common stock of the Company. Refer to Note 1. Nature of Operations and Note 8. (Loss) Earnings per Share to the consolidated financial statements in the Company's 2023 Annual Report on Form 10-K for additional information.


Amneal Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (unaudited; $ in thousands)

	June 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	43,769		$	91,542
Restricted cash		5,853			7,565
Trade accounts receivable, net		769,871			613,732
Inventories		575,624			581,384
Prepaid expenses and other current assets		81,596			82,685
Related party receivables		8,767			955
Total current assets		1,485,480			1,377,863
Property, plant and equipment, net		425,380			447,574
Goodwill		598,533			598,629
Intangible assets, net		819,944			890,423
Operating lease right-of-use assets		33,284			30,329
Operating lease right-of-use assets - related party		11,974			12,954
Financing lease right-of-use assets		58,299			59,280
Other assets		77,028			55,517
Total assets	$	3,509,922		$	3,472,569
Liabilities and Stockholders' (Deficiency) Equity
Current liabilities:
Accounts payable and accrued expenses	$	619,194		$	534,662
Current portion of liabilities for legal matters		30,740			76,988
Revolving credit facility		179,000			179,000
Current portion of long-term debt, net		225,156			34,125
Current portion of operating lease liabilities		9,669			9,207
Current portion of operating lease liabilities - related party		3,259			2,825
Current portion of financing lease liabilities		3,199			2,467
Related party payables - short term		12,773			7,321
Current portion of notes payable - related party		31,363			—
Total current liabilities		1,114,353			846,595
Long-term debt, net		2,177,578			2,386,004
Note payable - related party		—			41,447
Operating lease liabilities		26,782			24,095
Operating lease liabilities - related party		11,126			12,787
Financing lease liabilities		58,007			58,566
Related party payables - long term		16,146			11,776
Liabilities for legal matters - long term		85,479			316
Other long-term liabilities		24,518			29,679
Total long-term liabilities		2,399,636			2,564,670
Redeemable non-controlling interests		53,422			41,293
Total stockholders' (deficiency) equity		(57,489	)		20,011
Total liabilities and stockholders' (deficiency) equity	$	3,509,922		$	3,472,569


Amneal Pharmaceuticals, Inc. Consolidated Statements of Cash Flows (unaudited; $ in thousands)

	Six Months Ended June 30,
		2024			2023
Cash flows from operating activities:
Net (loss) income	$	(64,891	)	$	19,589
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		111,100			115,261
Unrealized foreign currency loss (gain)		2,080			(1,561	)
Amortization of debt issuance costs and discount		1,221			4,523
Intangible asset impairment charges		920			1,283
Change in fair value of contingent consideration		100			(3,907	)
Stock-based compensation		13,446			14,157
Inventory provision		41,493			41,806
Other operating charges and credits, net		(1,531	)		3,364
Changes in assets and liabilities:
Trade accounts receivable, net		(155,843	)		66,976
Inventories		(35,447	)		(60,526	)
Prepaid expenses, other current assets and other assets		(8,418	)		31,898
Related party receivables		(628	)		351
Accounts payable, accrued expenses and other liabilities		122,026			(107,760	)
Related party payables		9,619			2,913
Net cash provided by operating activities		35,247			128,367
Cash flows from investing activities:
Purchases of property, plant and equipment		(19,824	)		(21,691	)
Acquisition of intangible assets		(10,450	)		(1,488	)
Deposits for future acquisition of property, plant and equipment		(940	)		(842	)
Proceeds from sale of subsidiary		4,989			—
Net cash used in investing activities		(26,225	)		(24,021	)
Cash flows from financing activities:
Payments of principal on debt, revolving credit facilities, financing leases and other		(78,877	)		(87,566	)
Borrowings on revolving credit facilities		48,000			100,000
Proceeds from exercise of stock options		386			—
Employee payroll tax withholding on restricted stock unit vesting		(7,371	)		(2,033	)
Tax distributions to non-controlling interests		(8,883	)		(35,557	)
Payment of principal on notes payable - related party		(11,496	)		—
Net cash used in financing activities		(58,241	)		(25,156	)
Effect of foreign exchange rate on cash		(266	)		165
Net (decrease) increase in cash, cash equivalents, and restricted cash		(49,485	)		79,355
Cash, cash equivalents, and restricted cash - beginning of period		99,107			35,227
Cash, cash equivalents, and restricted cash - end of period	$	49,622		$	114,582
Cash and cash equivalents - end of period	$	43,769		$	109,284
Restricted cash - end of period		5,853			5,298
Cash, cash equivalents, and restricted cash - end of period	$	49,622		$	114,582


Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited, $ in thousands) Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net income (loss)	$	16,787		$	29,683		$	(64,891	)	$	19,589
Adjusted to add:
Interest expense, net		65,719			50,857			131,422			100,172
Provision for (benefit from) income taxes		3,618			(23	)		9,774			645
Depreciation and amortization		55,572			57,111			111,100			115,261
EBITDA (Non-GAAP)	$	141,696		$	137,628		$	187,405		$	235,667
Adjusted to add (deduct):
Stock-based compensation expense		6,725			6,561			13,231			14,157
Acquisition, site closure, and idle facility expenses ⁽¹⁾		579			1,579			1,023			4,280
Restructuring and other charges		131			82			1,601			493
Charges related to legal matters, net ⁽²⁾		699			2,017			95,058			6,081
Asset impairment charges		—			1,338			1,015			2,071
Foreign exchange loss (gain)		262			(421	)		1,459			(2,322	)
Change in fair value of contingent consideration		—			(6,364	)		100			(3,907	)
Increase in tax receivable agreement liability		13,444			405			15,392			1,231
System implementation expense ⁽³⁾		855			1,641			1,772			2,413
Other		(2,180	)		1,622			(3,494	)		2,104
Adjusted EBITDA (Non-GAAP)	$	162,211		$	146,088		$	314,562		$	262,268


Amneal Pharmaceuticals, Inc. Non-GAAP Reconciliations (unaudited; in thousands, except per share amounts) Reconciliation of Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted Diluted Earnings Per Share

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net income (loss)	$	16,787		$	29,683		$	(64,891	)	$	19,589
Adjusted to add (deduct):
Non-cash interest		547			2,112			629			3,953
GAAP provision for (benefit from) income taxes		3,618			(23	)		9,774			645
Amortization		38,818			39,309			77,489			78,920
Stock-based compensation expense		6,725			6,561			13,231			14,157
Acquisition, site closure expenses, and idle facility expenses ⁽¹⁾		579			1,579			1,023			4,280
Restructuring and other charges		131			82			1,584			493
Charges related to legal matters, including interest, net ⁽²⁾		699			2,725			95,185			7,607
Asset impairment charges		—			1,331			1,015			2,064
Change in fair value of contingent consideration		—			(6,364	)		100			(3,907	)
Increase in tax receivable agreement liability		13,444			405			15,392			1,231
System implementation expense ⁽³⁾		855			1,641			1,772			2,413
Other		(2,180	)		1,620			(3,494	)		2,251
Provision for income taxes ⁽⁴⁾		(17,800	)		(16,495	)		(32,141	)		(27,324	)
Net income attributable to non-controlling interests not associated with our Class B common stock		(10,793	)		(7,292	)		(20,758	)		(12,687	)
Adjusted net income (Non-GAAP)	$	51,430		$	56,874		$	95,910		$	93,685
Weighted average diluted shares outstanding (Non-GAAP) ⁽⁵⁾		318,957			307,004			317,758			306,691
Adjusted diluted earnings per share (Non-GAAP)	$	0.16		$	0.19		$	0.30		$	0.31

Amneal Pharmaceuticals, Inc.

Non-GAAP Reconciliations

(unaudited)

Explanations for Reconciliations of Net Income (Loss) to EBITDA and Adjusted EBITDA and Net Income (Loss) to Adjusted Net Income and Calculation of Adjusted Diluted Earnings per Share

(1)		Acquisition, site closure, and idle facility expenses for the three and six months ended June 30, 2024 primarily included rent for vacated properties. Acquisition, site closure, and idle facility expenses for the three and six months ended June 30, 2023 primarily included site closure costs associated with the planned cessation of manufacturing at our Hauppauge, NY facility.
(2)		For the six months ended June 30, 2024, charges related to legal matters, net were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States.
(3)		System implementation expense for the three and six months ended June 30, 2024 and 2023 was primarily for the implementation of software to further integrate our acquired businesses.
(4)		The non-GAAP effective tax rates for the three and six months ended June 30, 2024 were 25.7% and 25.1%, respectively. The non-GAAP effective tax rates for the three and six months ended June 30, 2023 were 22.5% and 22.6%, respectively.
(5)		Weighted average diluted shares outstanding for the three and six months ended June 30, 2024 consisted of fully diluted Class A common stock. Weighted average diluted shares outstanding for the three and six months ended June 30, 2023 consisted of diluted Class A common stock and Class B common stock, as if all shares of Class B common stock were converted to Class A common stock as of January 1, 2023.


Amneal Pharmaceuticals, Inc. Generics Segment Reconciliation of GAAP to Non-GAAP Operating Results ⁽¹⁾ (unaudited; $ in thousands)

	Three Months Ended June 30, 2024									Three Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	427,328		$	—		$	427,328		$	373,701		$	—		$	373,701
Cost of goods sold ⁽²⁾		260,903			(11,444	)		249,459			225,189			(13,404	)		211,785
Gross profit		166,425			11,444			177,869			148,512			13,404			161,916
Gross margin %		38.9	%					41.6	%		39.7	%					43.3	%

Selling, general and administrative ⁽³⁾		31,627			(1,591	)		30,036			28,040			(2,597	)		25,443
Research and development ⁽⁴⁾		31,703			(584	)		31,119			31,108			(325	)		30,783
Intellectual property legal development expenses		1,032			—			1,032			801			—			801
Restructuring and other charges		53			(53	)		—			—			—			—
Charges related to legal matters, net		699			(699	)		—			2,017			(2,017	)		—
Other operating income		—			—			—			13			—			13
Operating income	$	101,311		$	14,371		$	115,682		$	86,533		$	18,343		$	104,876

(1)		Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.
(2)		Adjustments for the three months ended June 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($0.9 million and $0.3 million), amortization expense ($10.5 million and $10.8 million), site closure and idle facility expenses (none and $1.0 million), and asset impairment charges (none and $1.3 million).
(3)		Adjustments for the three months ended June 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($1.0 million and $2.0 million) and site closure costs ($0.6 million in each period).
(4)		Adjustments for the three months ended June 30, 2024 and 2023 were comprised of stock-based compensation expense.


Amneal Pharmaceuticals, Inc. Generics Segment Reconciliation of GAAP to Non-GAAP Operating Results ⁽¹⁾ (unaudited; $ in thousands)

	Six Months Ended June 30, 2024									Six Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	818,622		$	—		$	818,622		$	717,507		$	—		$	717,507
Cost of goods sold ⁽²⁾		500,825			(23,712	)		477,113			455,740			(28,846	)		426,894
Gross profit		317,797			23,712			341,509			261,767			28,846			290,613
Gross margin %		38.8	%					41.7	%		36.5	%					40.5	%

Selling, general and administrative ⁽³⁾		64,712			(3,320	)		61,392			55,640			(3,876	)		51,764
Research and development ⁽⁴⁾		66,074			(1,239	)		64,835			63,467			(1,268	)		62,199
Intellectual property legal development expenses		1,992			—			1,992			2,425			—			2,425
Restructuring and other charges		53			(53	)		—			99			—			99
Charges (credit) related to legal matters, net ⁽⁵⁾		95,058			(95,058	)		—			(427	)		(4,073	)		(4,500	)
Other operating income		—			—			—			(1,211	)		—			(1,211	)
Operating income	$	89,908		$	123,382		$	213,290		$	141,774		$	38,063		$	179,837

(1)		Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.
(2)		Adjustments for the six months ended June 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($1.8 million and $2.0 million), amortization expense ($20.9 million and $21.6 million), site closure and idle facility expenses (none and $3.1 million), asset impairment charges ($1.0 million and $2.0 million), and other (none and $0.1 million).
(3)		Adjustments for the six months ended June 30, 2024 and 2023, respectively, were comprised of stock-based compensation expense ($2.3 million and $2.7 million) and site closure costs ($1.0 million and $1.2 million).
(4)		Adjustments for the six months ended June 30, 2024 and 2023 were comprised of stock-based compensation expense.
(5)		Adjustments for the six months ended June 30, 2024 were associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the United States.


Amneal Pharmaceuticals, Inc. Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (unaudited; $ in thousands)

	Three Months Ended June 30, 2024									Three Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	104,041		$	—		$	104,041		$	96,994		$	—		$	96,994
Cost of goods sold ⁽¹⁾		46,142			(25,977	)		20,165			46,512			(25,844	)		20,668
Gross profit		57,899			25,977			83,876			50,482			25,844			76,326
Gross margin %		55.7	%					80.6	%		52.0	%					78.7	%

Selling, general and administrative ⁽²⁾		26,610			(317	)		26,293			22,759			(228	)		22,531
Research and development ⁽²⁾		4,351			(259	)		4,092			6,691			(487	)		6,204
Intellectual property legal development expenses		10			—			10			19			—			19
Restructuring and other charges		78			(78	)		—			82			(82	)		—
Change in fair value of contingent consideration ⁽³⁾		—			—			—			(6,364	)		6,364			—
Operating income	$	26,850		$	26,631		$	53,481		$	27,295		$	20,277		$	47,572

(1)		Adjustments for the three months ended June 30, 2024 and 2023 were comprised of amortization expense.
(2)		Adjustments for the three months ended June 30, 2024 and 2023 were comprised of stock-based compensation expense.
(3)		Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC.


Amneal Pharmaceuticals, Inc. Specialty Segment Reconciliation of GAAP to Non-GAAP Operating Results (unaudited; $ in thousands)

	Six Months Ended June 30, 2024									Six Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	209,275		$	—		$	209,275		$	188,672		$	—		$	188,672
Cost of goods sold ⁽¹⁾		90,942			(51,955	)		38,987			89,703			(52,027	)		37,676
Gross profit		118,333			51,955			170,288			98,969			52,027			150,996
Gross margin %		56.5	%					81.4	%		52.5	%					80.0	%

Selling, general and administrative ⁽²⁾		51,806			(588	)		51,218			45,138			(414	)		44,724
Research and development ⁽²⁾		9,278			(543	)		8,735			13,022			(876	)		12,146
Intellectual property legal development expenses		34			—			34			39			—			39
Restructuring and other charges		1,024			(1,024	)		—			82			(82	)		—
Change in fair value of contingent consideration ⁽³⁾		100			(100	)		—			(3,907	)		3,907			—
Operating income	$	56,091		$	54,210		$	110,301		$	44,595		$	49,492		$	94,087

(1)		Adjustments for the six months ended June 30, 2024 and 2023 were comprised of amortization expense.
(2)		Adjustments for the six months ended June 30, 2024 and 2023 were comprised of stock-based compensation expense.
(3)		Contingent consideration was recorded in connection with the acquisitions of (i) the baclofen franchise from certain entities affiliated with Saol International Limited and (ii) Kashiv Specialty Pharmaceuticals, LLC.


Amneal Pharmaceuticals, Inc. AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results ⁽¹⁾ (unaudited; $ in thousands)

	Three Months Ended June 30, 2024									Three Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	170,411		$	—		$	170,411		$	128,351		$	—		$	128,351
Cost of goods sold		144,788			—			144,788			107,324			—			107,324
Gross profit		25,623			—			25,623			21,027			—			21,027
Gross margin %		15.0	%					15.0	%		16.4	%					16.4	%

Selling, general and administrative ⁽²⁾		14,642			(3,546	)		11,096			14,015			(4,188	)		9,827
Operating income	$	10,981		$	3,546		$	14,527		$	7,012		$	4,188		$	11,200

(1)		Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.
(2)		Adjustments for the three months ended June 30, 2024 and 2023 were comprised of amortization expense.


Amneal Pharmaceuticals, Inc. AvKARE Segment Reconciliation of GAAP to Non-GAAP Operating Results ⁽¹⁾ (unaudited; $ in thousands)

	Six Months Ended June 30, 2024									Six Months Ended June 30, 2023
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Net revenue	$	333,074		$	—		$	333,074		$	250,407		$	—		$	250,407
Cost of goods sold		281,197			—			281,197			212,936			—			212,936
Gross profit		51,877			—			51,877			37,471			—			37,471
Gross margin %		15.6	%					15.6	%		15.0	%					15.0	%

Selling, general and administrative ⁽²⁾		29,549			(7,091	)		22,458			26,955			(7,952	)		19,003
Operating income	$	22,328		$	7,091		$	29,419		$	10,516		$	7,952		$	18,468

(1)		Operating results for the sale of Amneal products by AvKARE were included in our Generics segment.
(2)		Adjustments for the six months ended June 30, 2024 and 2023, respectively, were comprised of amortization expense ($7.1 million and $8.4 million) and other (none and ($0.4) million).

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Amneal Reports Second Quarter 2024 Financial Results