Amneal Pharmaceuticals has recently released its 10-K report, providing a comprehensive overview of the company's financial performance and operations. The company, headquartered in Bridgewater, New Jersey, develops, manufactures, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide. It operates through three segments: Generics, Specialty, and AvKARE, offering a wide range of pharmaceutical products and services.
In the 10-K report, Amneal Pharmaceuticals disclosed its summarized consolidated cash flows for the years ended December 31, 2024, and 2023. The report indicated that net cash provided by operating activities was $295.1 million for the year ended December 31, 2024, compared to $345.6 million for the prior year, representing a 14.6% decrease. This decrease was primarily attributed to lower collections of outstanding accounts receivable due to the timing of sales in the quarter ended December 31, 2022, and a $21.4 million upfront payment associated with a license agreement in 2023.
Furthermore, the report highlighted that net cash used in investing activities was $63.0 million for the year ended December 31, 2024, compared to $69.2 million for the prior year, indicating a 9.0% decrease. The decrease was primarily due to proceeds from the sale of a subsidiary in India to a subsidiary of Kashiv in April 2024 and a decrease in cash paid for intangible assets associated with marketed product licenses.
Additionally, net cash used in financing activities of $211.8 million for the year ended December 31, 2024, remained relatively flat compared to the prior year. This stability was attributed to a decrease in payments associated with refinancing the company's Term Loan Due 2025 in the prior year, offset by a decrease in net debt and financing leases and an increase in employee payroll tax withholding on restricted stock unit vesting.
The report also outlined the company's contractual obligations as of December 31, 2024, including payments due by period for various obligations such as term loans, interest payments, operating lease obligations, financing lease obligations, tax receivable agreement liability, and non-cancelable marketing and royalty obligations. The total contractual obligations amounted to $3,560.9 million, with significant amounts allocated to term loans due in 2025 and 2028, reflecting the company's financial commitments over the coming years.
Moreover, the 10-K report provided insights into Amneal Pharmaceuticals' critical accounting policies, including significant estimates and assumptions related to sales-related deductions, business combinations, impairment of goodwill and intangible assets, income taxes, and contingencies. The report emphasized the importance of these critical accounting estimates, highlighting their potential impact on the company's financial condition and results of operations.
As a result of these announcements, the company's shares have moved 3.5% on the market, and are now trading at a price of $8.67. If you want to know more, read the company's complete 10-K report here.
