Amneal Pharmaceuticals Inc at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Schott - JPMorgan - Analyst : Yeah. I'd love to start the conversation on the CREXONT launch. Maybe just share a little bit just any surprises or learnings from this first rollout? Obviously, the script trend looks great. But just anything -- as you look at the dynamics, what are kind of your biggest takeaways? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director So far, everything is favorable. Access -- because product is doing good. We priced it properly. So it's 20% lower than RYTARY. Because we wanted to make sure we had 38% or so rejection on Rx. We wanted to reduce those tremendously. And then Medicare patient with $2,000 out of pocket per year. So it's $166 per month for all the prescriptions. And 65% are Medicare patients who are RYTARY users and CREXONT users. So more access will be created. So, so far, everything is positive. We were surprised by how good the product is. We're doing Phase 4 to find out more about it. And we got the label for naive patients, which is amazing. So we'll keep doing more and more study to see what happens to naive patients when they're on CREXONT. There are about 500,000 patients in the United States should be on CREXONT. And they're on IR, most of them. So we'll try to convince and prove [chain], move it to CREXONT as many as we can.

Question: Chris Schott - JPMorgan - Analyst : And can you talk about the payer piece of it? It seems like the coverage is building nicely. What are the targets for this year? And then as you think about longer term, where do you think you can get coverage for the product as we look beyond '25? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director So we already got 30% or so coverage. We expect 50%-plus. RYTARY got 70% coverage, highest in the category. So we'll aim to be more than that. So, so far, the discussions are very positive.

Question: Chris Schott - JPMorgan - Analyst : Yes, absolutely. And I know you've targeted $300 million to $500 million of peak here. How quickly do you think you can get to that target level? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director I believe 2028, we can get there.

Question: Chris Schott - JPMorgan - Analyst : Excellent. Maybe the last one is just -- Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director It's not a novel launch, right? It's a -- CD, LD has been the gold standard. And we solved the absorption issue, which is the biggest -- so how it crosses the -- goes through the intestines, crosses the blood brain barriers, and how long can we have levodopa converts into dopamine and last longer. We have solved that. So we're very excited, too.

Question: Chris Schott - JPMorgan - Analyst : Maybe pivoting over to the GLP-1 piece of the story. I guess, the first part, it seems there a lot different options you can go where the list goes over time. Where do you -- what's the most exciting piece of this to you in terms of -- is it working with some of the branded companies to build capacity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 6:30PM, AMRX.OQ - Amneal Pharmaceuticals Inc at JPMorgan Healthcare Conference Is it the international markets you have? Is it longer term, the generic opportunity as some of these big drugs go off? Help me understand what excites you the most of the -- what you're getting here. Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director Yeah, Chris. So most exciting thing is Metsera and that partnership with [Affordable Innovations], and we can provide scale. So that's our number one. Number two, we can also provide more access, do more work for big companies, the gold medalist, Lilly, or other upcoming big companies. So that's the second priority. GX, we will have it, but I'm not too excited about GX. Because there will be new GLP-1s, more half-life, much lesser side effects. So why would -- if the price points are similar a little bit here and there, why would you go for all generics of Ozempic? So we'll have it in case.

Question: Chris Schott - JPMorgan - Analyst : (inaudible) for emerging. Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director And we'll have the scale to supply that. Because it's -- everybody talks about we have generics, GLP. Who is going to have scale? Who is going to produce? And this -- for tablets, you're going to do for the oral solid, we'll need tonnage. No -- Lilly -- as it probably Novo will forget it out. But who has -- who can produce peptides and tonnage? It's all kilos.

Question: Chris Schott - JPMorgan - Analyst : Maybe just last question is, how do we think about kind of the updates from the company on this front? What are the things we should be watching to see how this progresses over the next few years? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director On GLPs?

Question: Chris Schott - JPMorgan - Analyst : How do you (inaudible) from an Amneal perspective? How should we kind of monitor how your progress --? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director Well, Amneal will be giving you update -- thank you -- on the progress on the construction, as we already have the lines on order, which is a rate-limiting factor. You would -- we keep seeing the Metsera data publicly. So with that, you will see how quickly we'll be able to with some emerging markets. We'll be -- probably file it earlier. It's a GLP-1. So it's a proven compound. So those are the updates you'll see in '25, '26, '27. '27, we like to validate certain manufacturing sites.

Question: Chris Schott - JPMorgan - Analyst : Yeah. Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director With Avastin, GCSF and [GCC]. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 6:30PM, AMRX.OQ - Amneal Pharmaceuticals Inc at JPMorgan Healthcare Conference

Question: Chris Schott - JPMorgan - Analyst : I think with Prolia and Xgeva, I've been trying to get my hands around kind of how that market plays out (multiple speakers) -- Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director That is going to be competitive. And the half is in onco side, and half is in bone health.

Question: Chris Schott - JPMorgan - Analyst : Yeah. And then the vertical integration longer term, what are the next steps from Amneal perspective? When do you make that decision to make the transition to --? Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director Well, we like to make that decision sometimes this year. Because now it's the time -- right time to invest more, right? So far, we have invested probably less than $70 million, $80 million -- biosimilar to $100 million. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 6:30PM, AMRX.OQ - Amneal Pharmaceuticals Inc at JPMorgan Healthcare Conference Now it's time to invest and vertically integrate bigger pipeline, so we can have a scale in manufacturing. We take advantage of global demand. So not just United States. In some global countries, we'll be able to launch products earlier than United States. It will always be US in the mind, but it's a global development. So sometimes this late this year.

Question: Chris Schott - JPMorgan - Analyst : Excellent. Maybe the last couple of minutes here. Just thinking about 2025, maybe just talk about pushes and pulls we should be kind of keeping in mind for the business as a whole?

Question: Chris Schott - JPMorgan - Analyst : Perfect. And maybe one follow-up just on the gross margin side. Anything notable we should be thinking about?

Question: Chris Schott - JPMorgan - Analyst : Ideally, where do you want to get the leverage? (inaudible) right place for the company?

Question: Chris Schott - JPMorgan - Analyst : Great. I think we're just about time here. I appreciate all the (multiple speakers) -- Chirag Patel - Amneal Pharmaceuticals Inc - President, Co-Chief Executive Officer, Co-Founder, Director Thank you so much.