Amneal Pharmaceuticals’ first quarter results were met with a negative reaction from the market, reflecting revenue that trailed Wall Street forecasts despite year-on-year growth. Management attributed the performance to strong momentum in its Specialty segment, particularly the launch of CREXONT for Parkinson’s disease, as well as ongoing expansion in injectables and biosimilars. CEO Chirag Patel highlighted, “CREXONT has made me feel and move tremendously better compared to RYTARY,” referencing patient feedback and increased market access as key drivers. The quarter also benefited from new product launches and operational efficiencies, which supported significant improvement in operating margin.
Is now the time to buy AMRX? Find out in our full research report (it’s free).
Amneal (AMRX) Q1 CY2025 Highlights:
- Revenue: $695.4 million vs analyst estimates of $720.2 million (5.5% year-on-year growth, 3.4% miss)
- Adjusted EPS: $0.21 vs analyst estimates of $0.15 (43.2% beat)
- Adjusted EBITDA: $170 million vs analyst estimates of $161.7 million (24.4% margin, 5.1% beat)
- The company reconfirmed its revenue guidance for the full year of $3.05 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $0.68 at the midpoint
- EBITDA guidance for the full year is $662.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 14.4%, up from -1.6% in the same quarter last year
- Market Capitalization: $2.52 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Amneal’s Q1 Earnings Call
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David Amsellem (Piper Sandler) asked about biosimilars’ 2025 revenue contribution and timing of vertical integration. CEO Chirag Patel confirmed expectations for $150-160 million in biosimilars revenue, with full vertical integration targeted by next year.
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Amsellem (Piper Sandler) also questioned injectable product focus. Co-CEO Chintu Patel explained that Amneal is investing equally in both complex injectables and high-volume shortage products, with new launches planned for both areas.
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Les Sulewski (Truist Securities) inquired about AvKARE’s exposure to government spending cuts and FDA approval delays. CEO Chirag Patel noted that AvKARE is seeing volume growth in government channels and has not experienced FDA delays.
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Sulewski (Truist Securities) also asked about CREXONT’s international rollout. Chirag Patel outlined progress in partnering for Canada, Latin America, Europe, Southeast Asia, and a direct launch in India, with ongoing discussions in China and Japan.
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Chris Schott (JPMorgan) probed how Amneal would respond to potential pharmaceutical tariffs. Chirag Patel highlighted available U.S. manufacturing capacity and the likelihood of cost-sharing with large customers if tariffs are enacted.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the continued adoption and insurance coverage expansion of CREXONT, (2) execution and regulatory progress for new specialty and injectable launches, and (3) developments in the biosimilars pipeline and vertical integration strategy. Progress in constructing GLP-1 manufacturing facilities and clarity on tariff impacts will also be key areas of focus.
Amneal currently trades at $8.13, up from $7.74 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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