Amneal Pharmaceuticals has recently released its 10-Q report, providing detailed insights into the company's financial performance and operations. Amneal Pharmaceuticals, Inc. is a global pharmaceutical company that develops, manufactures, and distributes a diverse portfolio of essential medicines, including retail generics, injectables, biosimilars, and specialty branded pharmaceuticals. The company operates primarily in the United States, India, and Ireland, selling to wholesalers, distributors, hospitals, governmental agencies, chain pharmacies, and individual pharmacies, either directly or indirectly. Amneal Pharmaceuticals operates through three reportable segments: Generics, Specialty, and AvKARE.
In the three months ended June 30, 2024, Amneal Pharmaceuticals reported net revenue of $701.8 million, marking a 17.1% increase from the same period in the previous year. The growth in net revenue was primarily driven by the company's Generics segment, which saw a 14.4% increase in net revenue, and the AvKARE segment, which experienced a significant 32.8% increase in net revenue. The Specialty segment also contributed to the growth with a 7.3% increase in net revenue.
The cost of goods sold for the three months ended June 30, 2024, increased by 19.2% compared to the same period in the previous year, primarily due to increased volume in the AvKARE and Generics segments, as well as increased plant and freight costs. Despite the increase in net revenue, the gross profit margin decreased to 35.6% from 36.7% in the prior year period, mainly due to the factors mentioned above.
Selling, general, and administrative expenses (SG&A) for the three months ended June 30, 2024, increased by 10.3% compared to the same period in the previous year, driven by increases in employee compensation, promotion associated with specific products, and costs associated with the growth in biosimilar revenues.
Research and development (R&D) expenses for the three months ended June 30, 2024, decreased by 4.6% compared to the same period in the previous year, primarily due to decreased in-licensing and upfront milestone payments and operating efficiencies in the infrastructure.
The company's provision for income taxes for the three months ended June 30, 2024, was $3.6 million, resulting in an effective tax rate of 17.7%. This is a significant change from the prior year period, where the company recorded an immaterial benefit from income taxes.
The market has reacted to these announcements by moving the company's shares -1.5% to a price of $7.65. If you want to know more, read the company's complete 10-Q report here.
