Amneal Pharmaceuticals, Inc. Q2 FY2025 Earnings Call

Good morning, and welcome to the Amneal Pharmaceuticals Second Quarter 2025 Earnings Call. I will now turn the call over to Amneal's Head of Investor Relations, Tony DiMeo.

Good morning, and thank you for joining Amneal Pharmaceuticals Second Quarter 2025 Earnings Call. Today, we issued a press release reporting Q2 results. The earnings press release and presentation are available at amneal.com. Certain statements made on this call regarding matters that are not historical facts, including, but not limited to, management's outlook or predictions, are forward-looking statements that are based solely on information that is now available to us. Please see the section entitled Cautionary Statements on Forward-Looking Statements for factors that may impact future performance. We also discuss non-GAAP measures. Information on the use of these measures and reconciliations to GAAP are in the earnings release and presentation. On the call today are Chirag and Chintu Patel, Co-Founders and Co-CEOs; Tasos Konidaris, CFO; our commercial leaders, Andy Boyer for Affordable Medicines; Joe Renda for Specialty; and Jason Daly, Chief Legal Officer. I will now hand the call over to Chirag.

Thank you, Tony. Good morning, everyone. The second quarter was another consecutive quarter of strong performance and growth with revenues of $720 million and adjusted EBITDA of $184 million. At the halfway point of the year, and with confidence in our outlook, we are pleased to raise 2025 guidance. I'm so excited to walk you through the multiple growth drivers that are shaping the future of Amneal. At Amneal, we focus each day on delivering innovative and affordable medicines that are essential for patients. Since our founding in 2002, we have methodically diversified beyond generics to build a broad and differentiated portfolio of branded and complex products. Amneal has stood out from the pack by generating consistent growth in each of the last six years, and we expect growth will continue in the years ahead. In the process, we have transformed Amneal and have entered the most exciting chapter yet. In this new chapter, there are a number of new growth drivers, including CREXONT for Parkinson's disease, Brekiya autoinjector for severe migraine, new biosimilars such as biosimilar of XOLAIR, our continued cadence of 20, 30 new generics launches each year, particularly complex products, including unique 505(b)(2) injectables for hospitals and our GLP-1 opportunity with Metsera. These new medicines and new opportunities are designed to create substantial value by: one, advancing the standard of care and increasing access to medicines for patients; two, further expanding and differentiating our portfolio for providers; and three, adding to our growth story for investors. Over time, Amneal has strategically evolved from generics to innovative and complex medicines. And we are entering our next phase of growth with strong momentum and clear confidence in growth ahead. First, in our Specialty segment, the launch of CREXONT for Parkinson's disease continues to exceed our expectations in the first year of the launch. Uptake has been very strong with U.S. market share about at 2% and on track for over 3% by the end of the year. Notably, about 80% of CREXONT scripts are coming from IR patients, which is a strong indicator of our successful strategy to pursue the broader Parkinson's market. The patient testimonials have been inspiring, and we have highlighted a few in our earnings presentations. We are highly confident that CREXONT will achieve U.S. peak sales of $300 million to $500 million. Let me now turn to our newest specialty branded product, Brekiya autoinjector, which received U.S. FDA approval in May. Brekiya is the first and only autoinjector form of DHE, a therapy that has been trusted for over 70 years for the acute treatment of migraine and cluster headaches in adults. In the migraine treatment landscape, there is significant unmet need for patients who do not respond to existing therapies. This new product gives patients sustained headache relief when they need it the most and eliminates the need for time-consuming hospital visits. We are excited to launch Brekiya with a commercial rollout in October. We continue to see this as a $50 million to $100 million peak sales opportunity. Second, in GLP-1s, we are advancing our partnership with Metsera to help deliver innovative therapies at scale. Amneal is Metsera's preferred global supplier for developed markets, including the U.S. and Europe. We will also commercialize their products in 20 emerging markets, including India. We see GLP-1 as a long-term opportunity, and we look forward to sharing more on this key catalyst over time. Third, in our Affordable Medicines segment, growth continues to be fueled by our diversified portfolio of complex products and addition of new differentiated offerings. Broadly, we continue to see favorable macro trends across all three pillars: retail generics, injectables, and biosimilars, and remain confident in our ability to execute, advance new innovations, and drive sustainable growth long term. Within biosimilars specifically, we see a favorable long-term outlook for the U.S. market. Over the next decade, the number of biologic patent expirations is expected to double compared to the past 10 years, creating significant opportunity as approximately 90% of these products do not have biosimilars in development. At the same time, development timelines and costs are trending lower with fewer Phase III study requirements and generally less competition per molecule, excluding some of the largest biologics such as HUMIRA and STELARA. Against this backdrop, our biosimilars in-licensing strategy has enabled us to build an initial portfolio. With three biosimilars already commercialized and five more in development, we anticipate having six marketed biosimilars across eight presentations by 2027. Specifically, biosimilar XOLAIR represents our largest biosimilar opportunity to date. As we have said in the past, our strategic intention is to be vertically integrated in biosimilars over time. Finally, performance in the AvKARE segment continues to be driven by a broad portfolio of products and new launches delivered across three distinct channels: government distribution and unit dose. This business, which adds stability and diversification to Amneal's portfolio is expected to drive revenue of over $900 million by 2027. In summary, Amneal has a diverse array of growth drivers that build upon our distinct market position, drive sustainable value creation and improve access and care for patients. Our strategic goal is to be America's #1 affordable medicines company, and we are well on our way. I'll now turn it over to Chintu.

Thank you, Chirag, and good morning, everyone. Let me begin by expressing my deep appreciation to our Amneal team. Your passion, resiliency, and unwavering commitment continue to drive Amneal forward as a deeply purpose-driven company. This morning, I will provide an update on our strategic priorities across operations, innovation, and expanding portfolio and how these are translating into strong execution and sustained performance in 2025. First, in operations, our global high-quality manufacturing infrastructure remains a key competitive advantage. Amneal continues to be recognized for its quality track record and industry-leading reliability. Each year, we make targeted investments in digitization and automation across our network to improve efficiency and scalability. We also stay focused on our cost structure through various operational excellence programs. These capabilities enable us to launch new complex products, help address drug shortages, and meet the needs of our customers and the patients we serve. Amneal has built one of the largest and most advanced U.S. pharmaceutical manufacturing footprints anchored in New York and New Jersey with broad capabilities across oral solids, liquids, topicals, transdermals, and complex formulations, making Made in America a core strategic advantage. In the second quarter, we announced our collaboration with ApiJect to start U.S. injectable manufacturing, leveraging their blow-fill-seal technology capabilities. This partnership strengthens our ability to serve both commercial and government markets with large production capacity while supporting U.S. emergency preparedness and national health security. This expansion extends our leading U.S. pharmaceutical manufacturing footprint and expands our domestic capabilities for future complex products in sterile dosage forms. Turning to innovation. We are very pleased with the continued strong performance of CREXONT in the first year of launch. CREXONT is uniquely designed to deliver rapid onset and sustained efficacy, giving Parkinson's patients more good on time with fewer daily doses. Our Phase IV study remains on track, and we expect this real-world data to further reinforce CREXONT's clinical value and differentiation. Next, in our specialty business is Brekiya, the now approved DHE autoinjector for migraine and cluster headache. This is the first and only autoinjector formulation of this well-established therapy. This paves the way for us to develop other drug-device combination products that are clinically relevant for providers and can help patients in other branded therapeutic areas. In GLP-1, our strategic partnership with Metsera is advancing. We are building two state-of-the-art manufacturing facilities, one for high-value peptide drug substance production and the other for advanced sterile fill-finish capabilities. Metsera's lead programs are progressing well through development with impressive efficacy and strong product profiles and timelines that are not too far out, positioning us to participate meaningfully in this high-growth market. This collaboration draws on our core strength in complex pharmaceutical R&D and manufacturing. Through our differentiated integrated business model, we believe we can drive innovation at scale and deliver new impactful obesity therapies for patients. In our Affordable Medicines portfolio, we expect to launch 20 to 30 new products each year. We have launched 15 new products so far in 2025. In Q2, we were pleased to receive approval for our generic version of Pred-Forte, a complex ophthalmic product. Among upcoming key launches this year, there is Risperdal injection for schizophrenia, a generic version of Restasis for dry eye, and many more. Overall, our Affordable Medicines pipeline remains deep and robust, capable of producing new products for years. We are very pleased with our continued progress in developing complex products across key categories such as microspheres, liposomes, and 505(b)(2) injectables. We are also making strong progress in inhalation, which will become a new vector of growth beginning next year with two commercial inhalation product launches expected in 2026. As of Q2, there are 76 ANDAs pending approval, out of which 67% are non-oral solids and 47 products in development, out of which 96% are non-oral solids. We continue to prioritize our R&D portfolio and allocate investment towards higher growth areas like Specialty brands, injectables, and biosimilars. In biosimilars, we see an opportunity for Amneal to establish a leadership position in the space. This year, we are filing five biosimilar pipeline candidates with launches targeted for 2026 and 2027. The BLA filings for two denosumab biosimilars were submitted with goal dates in quarter four. Next, we look to submit the supplemental BLA for our pegfilgrastim OBI and autoinjector in quarter four, followed by the BLA filing for biosimilar XOLAIR in quarter four. We are pleased that our pegfilgrastim OBI and autoinjector product as well as our biosimilar to XOLAIR will be made in America, underscoring our commitment to high-quality U.S.-based manufacturing and supply chain reliability. Recently, we shared positive Phase III data for biosimilar XOLAIR, positioning us to be among the first entrants in the $3 billion market. We are focused on advancing these programs and continuously adding new programs to expand our biosimilar portfolio. In summary, we have continued our strong operational momentum and execution in 2025. Our strategic focus on innovation, quality, and manufacturing excellence sets up well for sustainable growth and category leadership across our business over time. Thank you. And with that, I will hand it over to Tasos.

Thank you, Chintu, and good morning, everyone. We're very pleased with our second quarter financial performance as the resiliency of our diversified business model, strong growth in our specialty business and focus on efficiency delivered revenue growth of 3%, adjusted EBITDA growth of 13%, and adjusted EPS growth of 56%. Furthermore, we reduced net leverage to 3.7x versus 3.9x adjusted EBITDA in December 2024, and fully refinanced our debt, which will reduce interest costs substantially and extend maturities to 2032. From a top line perspective, Q2 was another quarter of growth with total net revenues up 3%. Our Affordable Medicines revenue of $433 million grew 1% on top of last year's exceptional growth of 14%. Our current quarter growth was driven by new products, where 2024 and 2025 launches added $33 million. It is important to note that during the second quarter, our commercial teams built a strong foundation with our clients across a number of new 505(b)(2) products, while our global supply teams completed a few production facilities upgrades. The combination of multiple highly innovative products and enhanced manufacturing supply to meet market demand gives us confidence for even higher revenues in subsequent quarters. Q2 Specialty revenue was also very strong at $128 million as it grew 23% year-over-year. This growth was driven by our three main branded products with CREXONT adding $11 million, RYTARY adding $9 million, up 19%, and UNITHROID adding $4 million, up 12%. We continue to be very pleased by the market acceptance of CREXONT and expect full year 2025 revenue in excess of our initial estimate of $15 million. In the second quarter, AvKARE revenues of $163 million declined 4%, while gross margin increased by 540 basis points and operating income increased by 44%. As we discussed in the first quarter, we're very pleased by the financial performance of AvKARE and the team's focus on higher profitability by maximizing the unique value we provide to the VA and DoD compared to the lower-margin distribution channel. Let me now move down the P&L, where Q2 adjusted gross margins were very strong at 45.6%, up 470 basis points year-over-year. These higher gross margins were driven by favorable product mix in each of the three segments and ongoing operating efficiencies. Notably, Q2 adjusted gross margins of Affordable Medicines grew 270 basis points to 44.3%. Our second quarter adjusted EBITDA of $184 million grew 13%, driven by top line growth, higher gross margins, and higher investments in R&D and sales and marketing to ensure future growth. Finally, we were extremely pleased by the 56% growth in adjusted earnings per share driven by the higher adjusted EBITDA, favorable foreign exchange, and lower interest expense. Looking at our first half performance, our total company revenues grew 4%. Our adjusted EBITDA of $354 million grew 12%, and our adjusted EPS of $0.45 is up 50%. We're also very pleased by the increased level of profitability as adjusted gross margin of 44.3% grew 290 basis points and adjusted EBITDA of 25% grew 180 basis points. Before I conclude with our updated 2025 financial guidance, I'll just touch on four important topics. First, we're excited about our multiple growth drivers, ensuring robust top line growth. This includes over 20 new product launches annually, strong uptake of CREXONT, the upcoming launch of Brekiya for migraine and cluster headaches, multiple new biosimilar launches next year, and large new product opportunities available to the VA and DoD. Second, from a tariff perspective, and while we don't have full clarity, we have multiple levers to mitigate any potential negative impact. As we have discussed, we have one of the largest U.S. manufacturing footprints in our industry. We have extensive experience with tech transfers. We have no meaningful exposure to Mexico, Canada, China, or Europe. And finally, no exposure to any most favored nation pricing action. Third, from a balance sheet perspective, we're extremely pleased by the full refinancing we opportunistically completed last week. In summary, we refinanced $2.7 billion of debt by issuing $2.1 billion in a new seven-year term loan B and a brand-new $600 million seven-year senior secured note. The refinancing was extremely well received and oversubscribed many times over and achieved long-term interest cost reduction of more than $33 million annually and extended maturity to 2032 versus 2028. Fourth point worth mentioning is that because of the new federal tax legislation, we expect about $46 million in cash tax savings, most of which will occur in 2026, improving our cash flow. This benefit is primarily driven by the immediate expensing of R&D and upfront depreciation of assets. With the strength of our first half performance, the multiple levers of growth drivers and solid execution, we're pleased to update our 2025 financial guidance. For revenues, we continue to expect $3 billion to $3.1 billion. We're increasing adjusted EBITDA by about $15 million in the range of $665 million and $685 million. We're increasing our adjusted EPS by about $0.05 between $0.70 and $0.75. And we're also raising our operating cash flow guidance, excluding discrete items, by about $20 million in the range of $300 million and $330 million. With that, I'll turn the call back to Chirag.

Thank you, Tasos. Q2 results and increased 2025 guidance reflect the continued strength of our diverse business. We are confident in our ability to continue advancing in this new chapter of growth towards our goal of being America's #1 affordable medicines company. Let's now open the call for question and answers.

Our first question comes from David Amsellem from Piper Sandler.

I have a couple of questions. First, regarding CREXONT and RYTARY as part of the overall Parkinson's franchise. As we approach 2025 and into 2026, considering the loss of exclusivity for RYTARY, how should we view the timeline for when the Parkinson's franchise might bottom out, and when do you expect to return that business to growth after fully absorbing the effects of the loss of exclusivity? Please provide some clarity on this as we move into next year. My second question is about the Metsera collaboration. You mentioned commercial manufacturing with cost-plus margins. I'm curious about how profitable this will be and how much these economics will contribute to your overall profitability.

David, this is Tasos. Let me address your first question regarding the current state of the business. Last year, RYTARY generated approximately $210 million in revenue, and we did not have CREXONT at that time. Even though the loss of exclusivity for RYTARY occurred on July 31, there hasn't been any approval for a generic version, which is positively impacting us this year. I believe this will also provide some short-term benefits into next year when generics do become available. This year, we estimate CREXONT will bring in around $55 million and RYTARY about $150 million, meaning the combined revenue is roughly unchanged compared to last year. Although EBITDA may face some pressure this year, we can handle that due to the growth in other areas of the business, which is essential for our investments in CREXONT. We expect revenue challenges to be more significant next year for RYTARY, given increased generic competition. However, CREXONT is experiencing rapid growth. Therefore, we anticipate that the lowest point in revenue will likely be next year. From an EBITDA standpoint, I don't foresee a large dip compared to this year, since we’ve already dealt with substantial challenges due to investments in CREXONT. Should there be any headwind in EBITDA next year, we believe we can manage it, as growth from the rest of the business will compensate. In summary, we think the low point will come next year, but we are confident in our ability to navigate this and continue driving overall growth. Now, let me turn it over to Chirag to discuss Metsera.

David, the Metsera collaborations are progressing very positively. We have a dedicated team of scientists and engineers working hard alongside Clive and his team. We're thrilled with our partnership, which is well-structured since we took on significant upfront risk in building the sites. Therefore, we expect our margins to be higher than the typical contract manufacturing organizations. While we're not currently estimating margins, they are certainly above the generics margins. Regarding international markets, we have control over marketing but are still determining the pricing. For reference, Lilly launched Mounjaro in India for $160 a month, and there might be generics like Ozempic entering the market at prices between $60 and $80 for monthly treatment. This presents a substantial opportunity for us, as we have rights across 20 countries, with India likely setting the prices for the rest. We don’t expect those prices to be lower than India's. A significant number of patients could be on this therapy, with the Indian demand at this price point estimated between $60 and $160. Currently, there is a shortage of the product, and we are looking at a market of around 50 million patients. These figures indicate that volume will drive margins, and greater penetration can lead to substantial revenue growth. We plan to start sizing all of these aspects from the beginning of 2026. Overall, we see this as a very significant opportunity for both supplying Metsera and our own international marketing efforts.

Our next question comes from Leszek Sulewski from Truist Securities.

First, on the Parkinson's franchise, maybe just provide a latest status of the RYTARY generic launches. And also, can you maybe provide some additional commentary on where you stand with the reimbursement? And separately, what's the update on the regulatory approval process across some of the other partners internationally that you've disclosed before? And maybe provide any additional timelines that you'd expect on your international or your launch in India on the product, maybe how do you think about the size of that opportunity? And then separately, maybe just kind of a longer view as you're capturing some of the uptake from these partnerships, including Metsera and others and lean more into innovative products, how are you thinking about the overall gross margin profile for the enterprise kind of moving into '27 and beyond?

Yes. Let me address the question about the RYTARY generic first, and then I will hand it over to Joe, who leads our commercial operations for Specialty. After that, Chirag and Chintu will discuss some partnerships, and I will cover the margin profile. Regarding generics, Teva currently holds a 180-day exclusivity on the generic RYTARY, but they have not yet received approval. Honestly, I am not aware of when that might occur. We believe that this presents a significant opportunity. We had anticipated that generics would be available starting August 1. This short-term delay, however, is beneficial for us financially. It enables us to reinvest in our business and enhance our guidance. Eventually, generics will likely come to market, perhaps later this year or next year, and we are well-positioned to address any challenges that may arise from that. That answers your first question. Now, I will turn it over to Joe for an update on the reimbursement for CREXONT.

Yes. Thanks, Tasos. Yes, Les, thanks for the question. We've been really pleased with coverage so far with CREXONT in the market. Actually, it's above our expectations. We are anticipating around 50% coverage or so far this year. We've garnered now over 60% commercial coverage, which includes some of the biggest payers in the market, United, CVS, VA, DoD. So really pleased with coverage, and we anticipate that to continue because we're in good dialogue with the payers related to some of the Part D plans. So our goal was always around 70% coverage. We're well on our way there, and the feedback from the market continues to be really strong from our key prescribers. So we're anticipating that the growth we're seeing is going to continue, and it's partly because of that great access that we've created so far.

Let me address some questions regarding our regulatory progress in international markets and the margin profile of our partnerships. As we've stated, 99.9% of our revenue comes from the U.S., leaving significant opportunities outside the U.S. We have strategically decided that rather than building infrastructures in those markets, which can take a long time to yield returns, the best approach is to develop partnership models everywhere except India. In India, we have a strong presence with 6,000 employees and a growing standard of living and pharmaceutical market. It makes sense for us to launch our own Amneal brand there. Our commercial team in Mumbai is already a few hundred strong, and while we are just starting to launch our product portfolio, we expect gradual growth in this area over time. In other markets, we have out-licensed CREXONT in Europe, and that regulatory process is ongoing, with product approvals and revenue building expected over the next couple of years. These are the main drivers of growth for our international business in the coming years. Regarding margins, we are committed to maintaining and increasing our gross margins steadily over time. Our adjusted EBITDA as a percentage of revenue has been around 22.5%, and we expect that to rise. We want to continue investing in the business to capture growth opportunities across injectables, biosimilars, and international markets, while ensuring we do not dilute our margins or cash flow. Now, I'll turn it over to Chintu or Chirag to see if they have any additional comments.

Thank you, Tasos. I just wanted to add on international partnership. First of all, we are very happy and pleased with CREXONT and how all the testimony for patients and our partners in Europe and LatAm are very pleased, and we are very excited. And we hope to launch these products in Europe by late 2026 and in India late '26 to early '27. So our regulatory applications are moving well, and we are excited. Plus we have a diversified manufacturing footprint and a cost advantage, we are also qualifying our India site for CREXONT to improve our margins. Just wanted to add that.

Our next question comes from Chris Schott from JPMorgan.

This is Ekaterina on for Chris. So first question is just around guidance. I think the revenue range does imply a bit of a step-up as we kind of think about revenues in the second half versus the first half of the year. Can you maybe elaborate what are the main drivers of this? I'm assuming some of this is the timing of new launches and perhaps the delay in RYTARY, but just anything else to kind of keep in mind? And second question is just around tariffs. Just latest thoughts on what these could mean for the industry in EMEA. And I think specifically, what are you hearing out of Washington on how generic products and API could be treated as we think about the 150% or 250% tariffs that are kind of being thrown around?

We anticipate a stronger second half in terms of revenue compared to the first half. As you mentioned, there are no fundamental changes except for the usual timing of new product launches. Products that we introduced late in 2024 and early 2025 will continue to gain momentum over time. Additionally, while most of the products we planned to launch in 2025 have already been released, there are still a few more expected in the third and fourth quarters that will contribute to revenue growth. Lastly, we completed several facility upgrades in the first and second quarters, which had previously hindered our ability to meet market demand, particularly for our injectable portfolio. With these improvements now in place, we can enhance our global supply capacity to better meet demand. All these factors will contribute to stronger revenue performance in the second half of the year, and we're also optimistic about growth heading into 2026 and 2027, driven by favorable conditions. I will now pass it on to Chirag to share more about their activities in Washington, D.C.

That's the toughest task to manage. We have been engaging with the administration, which is rightly concentrating on two main issues driving the pharmaceutical investigations. The first concern is national security, as there is a heavy dependence on antibiotics, with around 95% of key starting materials sourced from China. In fact, we barely manufacture anything in the U.S., and finished products account for less than 2%. When we analyze these critical categories, it’s clear we have almost no manufacturing capacity in the United States. The second issue is socioeconomics, which obviously relates to American job creation and increasing the number of factories and plants in the U.S. Therefore, while we aren't negotiating per se, we will be introducing new solutions. Imposing tariffs of 150% or even 200% would lead to chaos, as no one knows how long these tariffs would remain in place. Large tariffs would necessitate price increases for our customers since we need to continue supplying products, and we will continue generating profits—this situation affects all companies. We are the least affected because about two-thirds of our manufacturing value is within the U.S. However, shortages could arise, and this may not resolve the administration's goal of enhancing national security by relocating critical production to the U.S. from key starting materials to finished goods, thereby fostering demand for American-made products, which will naturally be more costly to produce here compared to China or India. Nevertheless, it is still uncertain; we will have to wait and see what develops. Currently, the pharmaceutical sector is exempt from all tariffs, so we will continue to monitor the situation.

Our next question is from Matt Dellatorre from Goldman Sachs.

Congrats on the continued progress. Maybe first, just to follow up on the prior question on the revenue guide. Should we expect the generics and distribution segments to inflect or catch up in the second half? And then second question, post the recent debt refinancing, what are your latest thoughts on the potential vertical integration of your biosimilars business in terms of timing or likelihood? And then maybe more broadly, how does this increased flexibility that you now have impact your broader capital allocation strategy?

Matt, this is Tasos. Regarding AvKARE, we anticipate significant growth in the second half of the year, driven by stability in our distribution channel. Additionally, we foresee our government business accelerating the growth we've already experienced this year, thanks to several large product launches. There are at least one or two major product opportunities that will arise in Q3, and AvKARE is well-positioned to take advantage of these opportunities. From a refinancing standpoint, as I previously mentioned, it was very successful and will substantially reduce our interest expenses, decreasing them by about 16% to 20% per year, depending on our usage. This is a significant improvement, as it also extends maturities by four years to 2032. We do not expect this to alter our capital allocation policy. Over time, our goal has been to appropriately fund our business and seize available opportunities. Additionally, reducing our debt over time is important to us, though it doesn't need to occur linearly every quarter or year. We believe we have done a commendable job of nearly halving our leverage in the last four to five years. Chirag, do you have anything to add?

Thank you, Tasos. Regarding your second question, Matt, about the timing of our integration, the biosimilars market is currently very competitive, and our focus is on executing quickly. The FDA, along with other regulatory agencies like the MHRA and EMA, has been very cooperative, which is crucial for achieving significant cost savings and improving patient access. We’ve observed a 2.5 times increase in volume due to lower prices, leading to more patients using these products. All regulatory and government agencies have provided strong support. Although we faced challenges initially with HUMIRA, the market has evolved, and now there are 100 biologics, with only 20 actively being developed. Our objective is to leverage our success with complex generics to build a pipeline of 30 to 35 products. By producing more in the United States and India, we can establish a global supply chain that enhances our cost position and speeds up execution. Although we aim to integrate as quickly as possible in this competitive environment, we will remain disciplined and pursue deals that won't negatively impact our hard-won debt-to-EBITDA ratio, allowing for growth at Amneal over the next decade.

This concludes our Q&A session. So I'll hand back to Chirag for closing remarks.

Thank you very much, everybody. Have a great day today. Thank you.

Thank you.

Thanks, everyone.

Thank you. This concludes today's call. Thank you for joining. You may now disconnect your lines.