Amneal Pharmaceuticals, Inc. has recently released its 10-K report, providing a detailed insight into its business operations and financial performance. The company, along with its subsidiaries, specializes in the development, manufacturing, marketing, and distribution of generics, injectables, biosimilars, and specialty branded pharmaceutical products globally. Amneal operates through three segments: Generics, Specialty, and AvKARE. The Generics segment offers a wide range of products including oral solid, powder, liquid, sterile injectable, nasal spray, inhalation and respiratory, biosimilar, ophthalmic, film, transdermal patch, and topical products. The Specialty segment focuses on central nervous system and endocrine disorder treatments, offering products such as Rytary for Parkinson's disease and Unithroid for hypothyroidism. The AvKARE segment primarily serves governmental agencies, the Department of Defense, and the Department of Veterans Affairs, offering pharmaceuticals, medical and surgical products, and services. The company was founded in 2002 and is headquartered in Bridgewater, New Jersey.
In its 2023 Annual Report on Form 10-K, Amneal Pharmaceuticals reported its summarized consolidated cash flows for the years ended December 31, 2024, and 2023. The 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 decrease of 14.6%. The decrease in net operating cash flows for 2024 was primarily driven by lower collections of outstanding accounts receivable due to the timing of sales in the quarter ended December 31, 2022, which benefited the year ended December 31, 2023. Additionally, the company reported a net increase in cash, cash equivalents, and restricted cash of $19.3 million for the year ended December 31, 2024, compared to $63.9 million for the prior year, indicating a decrease of 69.8%.
Regarding cash flows from investing activities, Amneal reported 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, representing a decrease of 9.0%. This decrease was primarily due to $12.0 million in proceeds from the sale of a subsidiary in India to a subsidiary of Kashiv in April 2024, and a year-over-year decrease in cash paid for intangible assets associated with marketed product licenses, partially offset by higher capital expenditures.
Furthermore, the company disclosed that net cash used in financing activities for the year ended December 31, 2024, was $211.8 million, which was relatively flat compared to the prior year. The decrease in payments associated with refinancing the Term Loan Due 2025 in the prior year and a reduction in tax distributions paid to non-controlling interests were offset by a year-over-year decrease in net debt and financing leases and an increase in employee payroll tax withholding on restricted stock unit vesting.
Amneal Pharmaceuticals also detailed its contractual obligations as of December 31, 2024. The total payments due by period for various obligations, including term loans, interest payments, operating lease obligations, financing lease obligations, tax receivable agreement liability, and non-cancelable marketing and royalty obligations, amounted to $3.56 billion. The company provided a comprehensive description of its critical accounting policies, including sales-related deductions, business combinations, impairment of goodwill and intangible assets, income taxes, and contingencies, emphasizing the significant judgments and estimates involved in these policies and their potential impact on the financial condition and results of operations. Following these announcements, the company's shares moved 3.5%, 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.
