Amneal Pharmaceuticals, Inc.

Good morning and welcome to the annual third quarter 2020 earnings call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to the MNIL's Chief Financial Officer, Tasos Kanedaris. Please go ahead.

Thank you, Andrew. Good morning, and thank you for joining us for MNIL's third quarter 2020 earnings call. Earlier this morning, we issued a press release reporting of quarterly results. The press release as well as the slides that will be presented on this call are available on our website at www.ml.com. We're conducting a live webcast of this call, a replay of which will be also available on our website after its conclusion. Please note that today's call is copyrighted material of ML and cannot be rebroadcast without the company's express written consent. I would like to remind you that statements made during this call state the management's outlook or predictions for future periods of forward-looking statements. These statements are based solely on information that is now available to us. When querying to review this section, the NIGEL customary statements on 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 are revised and updated in our quarterly reports on Form 10-Q and current reports on Form 8-K, which you can also find on our website or on the 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 our reconciliation 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 Chirag and Chidu Patel, our co-CEOs, Andy Boyer, and Jonathan Disko, our chief commercial officers for our generics and specialty segments, as well as Steve Manzano, our general counsel and corporate secretary.

I will now turn the call over to Chirag. Good morning, and thank you for joining us in the review of NU's third quarter results. this quarter versus prior year with net revenue of $519 million up 37%, adjusted EBITDA of $114 million up 60%, and adjusted EPS of $0.16 up substantially versus $0.04. Our strong and consistent financial performance over the course of 2020 reflects the successful execution of of our MNIL 2.0 strategy. This could not have been possible without the resiliency and excellent work of our global team. We know that education and commitment to providing affordable and innovative medicines to patients is an integral part of navigating the COVID-19 pandemic this year. We all know how difficult the last few months have been due to COVID-19. And unfortunately, we are clearly not out of the woods yet. From our perspective, in Q3, we saw sequential pickup in demand and lower supply chain disruption compared to the second quarter. Having said that, we continue to be vigilant and actively preparing for the next wave of COVID-19 to ensure we meet the demands of our customers and avoid any material disruptions over the coming months. As we discussed in our first quarter 2020 call, this pandemic raised the issue of domestic preparedness and the need to fortify production of critical medicines based in the United States. MNIL is the largest U.S. genetics company domiciled in the United States, and we believe our operational expertise and excellent quality track record uniquely positions us to be part of an expanded domestic drug manufacturing strategy. Over the course of the last few months, we have spent a substantial amount of energy and resources to respond to this bipartisan effort, and we look forward to working with legislators from both parties. as well as industry to help protect the health and safety of our citizens. Ever since we rejoined as co-CEOs last summer, we shared with you our intent to reinvigorate the R&D pipeline, successfully launch new products, bolster our base business, diversify our distribution channels, and focus on operational excellence to improve profitability. In Q3, we executed on all these objectives. And let me start with our generic segment, where net revenue increased 17% compared to Q3 of 2019. The double-digit net revenue growth reflects the successful launch of eight of the 15 complex new products. We target launching by August 2021, as well as the continued strong performance by during its profit. we are building on our strong presence with a steady flow of new product launches, including flupinazine hydrochloride tablets for treatment of schizophrenia and Genetics Butans Transdermal System for pain management and shortly Genetics Lidocaine Patch. As we mentioned in the past, continuing to shift our mix of products to more complex or differentiated products is a strategic priority of ours. This is reflected by the substantial increase in our R&D pipeline focused on non-oral solid products. In addition to new product growth, we were pleased by the strength in our base business. This growth reflects the relevancy of our broad commercial portfolio and customer focus by our commercial and supply chain organizations. Finally, we are constantly looking for ways to leverage our generic product portfolio and manufacturing capability in new channels such as over-the-counter. An example of such initiatives is the recent launch of the store brand equivalent of Waltherin's alternative paint gel, which we introduced in partnership with PLD. Top-line growth as well as keeping a close eye on operations gross margin to 37.4% compared to 29.8% in Q3 of 2019. As co-CEOs, along with our broader team, we are acutely focused on operational excellence Continuing to find ways to improve efficiency and optimize our expense base is a key component of our M2.0 strategy. We have a robust list of company-wide activities from gross to net deductions to purchasing to manufacturing and SG&A expenses, which will help drive Genetics' existing gross margin above 40% over the course of time. Let me now turn over to our specialty segment where our business was stable compared with the Ferrari. We feel good about this performance considering the fact we came off a very strong second quarter. And the headwind of COVID-19 is having on a physician office visits and new patient starts. Both dietary and urinary continue to show strong growth. with cells of approximately 12% and 29%, respectively, and combined prescriptions volume of 6%. Moving on to AbCare, which concerns $89.5 million from $64 million in the prior quarter. The healthcare team has done a nice job growing the top-line business despite a slowdown in new product introductions from third-party suppliers due to COVID-19, and usually such new products carry high margins. We continue to be excited about the long-term opportunities in the growing government segment. With that, let me turn the call over to Chintu now.