Amneal Pharmaceuticals, Inc.

Good morning and welcome to Amnail Pharmaceutical's second quarter 2020 earnings conference call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I'd now like to turn the conference over to MNIL's Chief Financial Officer, Mr. Tasos Kanaderos. Please go ahead.

Good morning. Thank you for joining us at MNIL's second quarter 2020 earnings call. Earlier this morning, we issued a press release reporting our quarterly results. The press release, as well as the slides that will be presented on the call, are available on our website at www.mnil.com. We're conducting a live webcast of this call and a replay of which will also be available on our website after its conclusion. Please note that today's call is copyrighted material of MNIL and cannot be rebroadcast without the company's expressed written consent. I'd like to remind you that statements made during this call stating management's outlook or predictions for future periods are forward-looking statements. These statements are based solely on information that is now available to us. We encourage you to review the section entitled Cautionary Statements and Forward-looking Statements in our press release and presentation which applies to this call. Our future performance may differ due to numerous factors, many of which are listed in our most recent annual report on Form 10-K, And I revised and updated on our quarterly reports on Form 10Q and current reports on Form 8K, which you can also find on our website or on SCC's website at scc.gov. We also discussed certain non-GAAP measures. You will find important information on our use of these measures and other reconciliations to use GAAP in our earnings release. Included in the appendix of today's presentation, you will find U.S. GAAP financial statements that correspond to some of our non-U.S. GAAP measures we referenced throughout the presentation. On the call this morning are Shirak and Chintu Patel, our co-CEOs, Andy Boyer and Jota Disco, our chief commercial officers of our generics and specialty segments, respectively, as well as Steve Manzano, our general counsel and corporate secretary. I would now like to turn the call over to Shirad.

Thank you, Darshan. And good morning, everyone. Hope everyone is safe and healthy. Thank you for joining us to review MNU's second quarter results. I'm pleased to report solid top and bottom line results with net revenue of $465 million, up 15% versus Q2 2019, adjusted EBITDA of $101 million, up 9%, and adjusted EPS of $0.13. up 44%. Overall, our business performed in line with our expectations and reflects our organizational focus and resiliency in meeting the needs of our patients against headwinds related to COVID-19 pandemic. This solid performance reflects the strong foundation of the company and the growth vision that Chintu and I laid out a year ago when we returned as a row of co-CEOs. As we said then, we plan to reinvigorate the generics business in the United States, build out our specialty franchise, enhance our operational execution, and diversify our distribution channels. We had a strong base for growth with three core businesses, retail generics, the hospital market for injectable drugs, and the specialty pharmaceuticals, where we already had a growing presence in neurology and endocrinology. In the past 12 months, we, along with 5,500 employees, have been executing on three strategic priorities. We have reignited companies' genetics R&D engine, advanced differentiated specialty R&D assets like IPX203, and K127 successfully launched numerous new products and improved our efficiency and cost structure. In addition, we expanded our distribution with the acquisition of , which gave us a new avenue of growth with the U.S. federal agency sector. Consequently, MNIL now has a well-diversified portfolio of more than 250 approved products, a best-in-class manufacturing organization in the United States, India and Ireland and a pipeline of new complex generics and innovative brands. We are moving forward with our strategy to develop more high-value generics portfolio and a larger specialty business. Let me provide an update on our progress. We are strengthening our generics portfolio with new products. So far, we have launched seven of our target of 15 new complex generic products by 2021. Our generic versions of Nuering and Carapet continue to perform strongly, and we recently launched generic Lupinazine, which we also expect to perform well. Within the specialty segment, sales of our top products remain robust. For the quarter, Riteria and Unitroid total prescriptions grew 8% over 2Q 2019. Successful execution of marketing strategies has driven top-line growth as well as improved growth to next. leading to a strong quarter for the segment. Over time, we expect to devote a larger share of our R&D spending to the specialty segment as we seek attractive business development opportunities that leverage our existing platform in CNS and endocrinology. Moving on to our distribution strategy, we're very pleased with our acquisition. which is providing us with an attractive differentiated asset. We are expanding the higher margin unit dose business at Evcare, see potential for additional opportunities as well. The integration has gone very well, and over time, we would expect to further accelerate Evcare's growth. Let me provide some highlights on the second quarter results. Starting with our genetics business, as we expected, COVID-19 had a temporary negative effect. Demand for some products dipped as patient delayed procedures and physician's office visits. We also temporarily experienced larger than usual backorders due to supply chain disruptions. For example, we experienced manufacturing and packaging delays at our New York and New Jersey facilities as those states were hit hard by the initial wave of coronavirus. However, I'm pleased to report that the situation improved as the quarter progressed, and we are now in a better position on back orders and rebuilding our preferred levels of finished goods inventory. In the specialty business, we were pleased by the strong performance of Rytary and Unithroid, which offset weakness of some other brands due to COVID-19. This is the result of successful transition of marketing programs from in-person to virtual, physician comfort with prescribing Rytary and Unithroid through telemedicine, and the resiliency of refills for those brands. Revenue from Rytary and Unithroid increased 25% compared to Q2 2019, highlighting our successful commercial strategy and execution. Turning to healthcare, this business continued to perform well, though COVID caused some temporary delays in the launch of new products by other providers. In sum, we are moving forward strongly and continue to focus on operational excellence. In this effort, Shintu and I leveraged a wealth of experience, having grown MNIL from a modest startup to more than a billion in revenue by 2017. Our performance through the first half of the year Despite the impact from COVID, it gives us confidence as we continue to position MNEO for long-term success. With that, let me turn it over to Chindu.