AMNEAL PHARMACEUTICALS, INC., 10-Q filed on 11/8/2021
Quarterly Report
v3.21.2
Cover - shares
9 Months Ended
Sep. 30, 2021
Oct. 29, 2021
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 001-38485  
Entity Registrant Name Amneal Pharmaceuticals, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 32-0546926  
Entity Address, Address Line One 400 Crossing Boulevard,  
Entity Address, City or Town Bridgewater  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 08807  
City Area Code 908  
Local Phone Number 947-3120  
Title of 12(b) Security Class A Common Stock, par value $0.01 per share  
Trading Symbol AMRX  
Security Exchange Name NYSE  
Entity Current Reporting Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001723128  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Class A Common Stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   149,371,355
Class B Common Stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   152,116,890
v3.21.2
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Income Statement [Abstract]        
Net revenue $ 528,593 $ 519,294 $ 1,556,773 $ 1,482,489
Cost of goods sold 329,394 353,345 953,514 986,589
Cost of goods sold impairment charges 688 32,364 688 34,579
Gross profit 198,511 133,585 602,571 461,321
Selling, general and administrative 91,397 83,120 268,280 242,040
Research and development 48,927 44,519 149,973 126,470
In-process research and development impairment charges 0 0 710 960
Intellectual property legal development expenses 1,627 2,134 6,574 6,954
Acquisition, transaction-related and integration expenses 134 1,041 7,219 5,403
Charges related to legal matters, net 19,000 60 19,000 5,860
Restructuring and other charges 425 276 788 2,657
Change in fair value of contingent consideration 300 0 300 0
Property losses and associated expenses 8,186 0 8,186 0
Operating income 28,515 2,435 141,541 70,977
Other (expense) income:        
Interest expense, net (34,400) (34,895) (102,368) (111,463)
Foreign exchange (loss) gain, net (29) 9,673 (185) 7,958
Gain on sale of international businesses, net 0 0 0 123
Other income, net 3,871 898 8,697 2,102
Total other expense, net (30,558) (24,324) (93,856) (101,280)
(Loss) income before income taxes (2,043) (21,889) 47,685 (30,303)
Provision for (benefit from) income taxes 4,049 144 7,056 (105,843)
Net (loss) income (6,092) (22,033) 40,629 75,540
Less: Net loss (income) attributable to non-controlling interests 1,855 13,058 (23,628) 18,556
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. $ (4,237) $ (8,975) $ 17,001 $ 94,096
Net (loss) income per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:        
Basic (in usd per share) $ (0.03) $ (0.06) $ 0.11 $ 0.64
Diluted (in usd per share) $ (0.03) $ (0.06) $ 0.11 $ 0.63
Weighted-average common shares outstanding:        
Basic (in shares) 149,290 147,558 148,771 147,377
Diluted (in shares) 149,290 147,558 151,655 148,622
v3.21.2
Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Other Comprehensive Income [Abstract]        
Net (loss) income $ (6,092) $ (22,033) $ 40,629 $ 75,540
Less: Net loss (income) attributable to non-controlling interests 1,855 13,058 (23,628) 18,556
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. (4,237) (8,975) 17,001 94,096
Other comprehensive income (loss):        
Foreign currency translation adjustments arising during the period (1,164) (1,646) (7,348) (9,748)
Unrealized gain (loss) on cash flow hedge, net of tax 2,711 (1,599) 24,187 (74,031)
Less: Other comprehensive (income) loss attributable to non-controlling interests (781) 1,648 (8,531) 42,575
Other comprehensive income (loss) attributable to Amneal Pharmaceuticals, Inc. 766 (1,597) 8,308 (41,204)
Comprehensive (loss) income attributable to Amneal Pharmaceuticals, Inc. $ (3,471) $ (10,572) $ 25,309 $ 52,892
v3.21.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 302,655 $ 341,378
Restricted cash 7,964 5,743
Trade accounts receivable, net 627,954 638,895
Inventories 520,245 490,649
Prepaid expenses and other current assets 110,212 73,467
Related party receivables 1,307 1,407
Total current assets 1,570,337 1,551,539
Property, plant and equipment, net 459,651 477,754
Goodwill 566,406 522,814
Intangible assets, net 1,232,727 1,304,626
Financing lease right-of-use assets   10,000
Other assets 19,528 22,344
Total assets 3,974,409 4,006,033
Current liabilities:    
Accounts payable and accrued expenses 589,412 611,867
Current portion of long-term debt, net 30,471 44,228
Current portion of financing lease liabilities   2,000
Related party payable - short term 32,474 7,561
Total current liabilities 667,335 676,902
Long-term debt, net 2,687,668 2,735,264
Note payable - related party 37,629 36,440
Financing lease liabilities   2,000
Related party payable - long term 9,566 1,584
Other long-term liabilities 60,795 83,365
Total long-term liabilities 2,908,648 2,972,395
Commitments and contingencies (Notes 5 and 13)
Redeemable non-controlling interests 15,260 11,804
Stockholders' Equity    
Preferred stock, $0.01 par value, 2,000 shares authorized; none issued at both September 30, 2021 and December 31, 2020 0 0
Additional paid-in capital 650,539 628,413
Stockholders' accumulated deficit (269,820) (286,821)
Accumulated other comprehensive loss (33,227) (41,318)
Total Amneal Pharmaceuticals, Inc. stockholders' equity 350,506 303,271
Non-controlling interests 32,660 41,661
Total stockholders' equity 383,166 344,932
Total liabilities and stockholders' equity 3,974,409 4,006,033
Class A Common Stock    
Stockholders' Equity    
Common stock 1,492 1,475
Class B Common Stock    
Stockholders' Equity    
Common stock 1,522 1,522
Excluding Related Party    
Current assets:    
Operating lease right-of-use assets 38,993 33,947
Financing lease right-of-use assets 65,682 9,541
Current liabilities:    
Current portion of operating lease liabilities 9,180 6,474
Current portion of financing lease liabilities 3,218 1,794
Operating lease liabilities 32,562 30,182
Financing lease liabilities 60,966 2,318
Related Party    
Current assets:    
Operating lease right-of-use assets 21,085 24,792
Financing lease right-of-use assets 0 58,676
Current liabilities:    
Current portion of operating and financing lease liabilities - related party 2,580 3,978
Current portion of note payable - related party 0 1,000
Operating lease liabilities 19,462 23,049
Financing lease liabilities $ 0 $ 60,193
v3.21.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2021
Dec. 31, 2020
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 2,000,000 2,000,000
Preferred stock, shares issued (in shares) 0 0
Class A Common Stock    
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 900,000,000 900,000,000
Common stock, shares issued (in shares) 149,332,000 147,674,000
Class B Common Stock    
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 152,117,000 152,117,000
v3.21.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:    
Net (loss) income $ 40,629 $ 75,540
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 172,223 175,514
Unrealized foreign currency loss (94) (7,779)
Amortization of debt issuance costs and discount 6,873 6,449
Gain on sale of international businesses, net 0 (123)
Intangible asset impairment charges 1,398 35,539
Asset-related credit 0 (536)
Change in fair value of contingent consideration 300 0
Stock-based compensation 20,670 15,617
Inventory provision 39,290 56,198
Non-cash property losses 5,152 0
Other operating charges and credits, net 3,965 6,248
Changes in assets and liabilities:    
Trade accounts receivable, net 10,894 (50,748)
Inventories (65,643) (80,722)
Prepaid expenses, other current assets and other assets (27,493) 17,638
Related party receivables 7,201 870
Accounts payable, accrued expenses and other liabilities (32,819) 21,737
Related party payables (3,987) 1,601
Net cash provided by operating activities 178,559 273,043
Cash flows from investing activities:    
Purchases of property, plant and equipment (30,230) (26,912)
Deposits for future acquisition of property, plant, and equipment (2,655) (4,229)
Acquisition of intangible assets (500) (3,250)
Acquisitions, net of cash acquired (73,828) (251,360)
Net cash used in investing activities (107,213) (285,751)
Cash flows from financing activities:    
Proceeds from issuance of debt 0 180,000
Payments of principal on debt, financing leases and other (68,240) (26,500)
Payments of deferred financing costs 0 (4,102)
Proceeds from exercise of stock options 834 216
Employee payroll tax withholding on restricted stock unit vesting (2,595) (795)
Tax distributions to non-controlling interests (36,678) (1,628)
Distribution of earnings to and acquisition of non-controlling interests 0 (3,300)
Payments of principal on financing lease - related party (93) (802)
Repayment of related party note (1,000) 0
Net cash (used in) provided by financing activities (107,772) 143,089
Effect of foreign exchange rate on cash (76) 447
Net (decrease) increase in cash, cash equivalents, and restricted cash (36,502) 130,828
Cash, cash equivalents, and restricted cash - beginning of period 347,121 152,822
Cash, cash equivalents, and restricted cash - end of period 310,619 283,650
Cash and cash equivalents - end of period 302,655 281,278
Restricted cash - end of period 7,964 2,372
Supplemental disclosure of cash flow information:    
Cash paid for interest 91,678 99,207
Cash (paid) received for income taxes, net (11,583) 109,444
Supplemental disclosure of non-cash investing and financing activity:    
Notes payable for acquisitions - related party 0 36,033
Deferred consideration for acquisition - related party 30,099 0
Contingent consideration for acquisition - related party 6,100 0
Payments for restricted stock unit tax vesting 9 6
Payable for acquisition of product rights and licenses $ 1,500 $ 0
v3.21.2
Consolidated Statement of Stockholders' Equity - USD ($)
$ in Thousands
Total
Subsequent To Combination
Common Stock
Class A Common Stock
Common Stock
Class B Common Stock
Additional Paid-in Capital
Stockholders' Accumulated Deficit
Accumulated Other Comprehensive (Loss) Income
Non-Controlling Interests
Non-Controlling Interests
Subsequent To Combination
Shares beginning balance (in shares) at Dec. 31, 2019     147,070,000 152,117,000          
Stockholders' equity beginning balance at Dec. 31, 2019 $ 346,788   $ 1,470 $ 1,522 $ 606,966 $ (377,880) $ (68) $ 114,778  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income 74,625         94,096   (19,471)  
Foreign currency translation adjustment (9,748)           (4,795) (4,953)  
Stock-based compensation 15,617       15,617        
Exercise of stock options (in shares)     79,000            
Exercise of stock options 216   $ 1   217   (9) 7  
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)     438,000            
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (801)   $ 4   227   (25) (1,007)  
Unrealized gain (loss) on cash flow hedge, net of tax (74,031)           (36,409) (37,622)  
Tax distributions (1,170)             (1,170)  
Distribution of earnings to and acquisition of non-controlling interests (3,300)       106     (3,406)  
Shares ending balance (in shares) at Sep. 30, 2020     147,587,000 152,117,000          
Stockholders' equity ending balance at Sep. 30, 2020 348,196   $ 1,475 $ 1,522 623,133 (283,784) (41,306) 47,156  
Redeemable Non-Controlling Interests, beginning balance at Dec. 31, 2019 0                
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Net (loss) income 915                
Tax distributions (458)                
Non-controlling interests from Rondo transaction 11,475                
Distribution of earnings to and acquisition of non-controlling interests 0                
Redeemable Non-Controlling Interests, ending balance at Sep. 30, 2020 11,932                
Shares beginning balance (in shares) at Jun. 30, 2020     147,493,000 152,117,000          
Stockholders' equity beginning balance at Jun. 30, 2020 371,016   $ 1,474 $ 1,522 617,504 (274,809) (39,696) 65,021  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (21,640)         (8,975)   (12,665)  
Foreign currency translation adjustment (1,646)           (810) (836)  
Stock-based compensation 5,415       5,415        
Exercise of stock options (in shares)     21,000            
Exercise of stock options 58   $ 0   59   (3) 2  
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)     73,000            
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (108)   $ 1   49   (10) (148)  
Unrealized gain (loss) on cash flow hedge, net of tax (1,599)           (787) (812)  
Distribution of earnings to and acquisition of non-controlling interests (3,300)       106     (3,406)  
Shares ending balance (in shares) at Sep. 30, 2020     147,587,000 152,117,000          
Stockholders' equity ending balance at Sep. 30, 2020 348,196   $ 1,475 $ 1,522 623,133 (283,784) (41,306) 47,156  
Redeemable Non-Controlling Interests, beginning balance at Jun. 30, 2020 12,380                
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Net (loss) income (393)                
Tax distributions (55)                
Redeemable Non-Controlling Interests, ending balance at Sep. 30, 2020 11,932                
Shares beginning balance (in shares) at Dec. 31, 2020     147,674,000 152,117,000          
Stockholders' equity beginning balance at Dec. 31, 2020 344,932   $ 1,475 $ 1,522 628,413 (286,821) (41,318) 41,661  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income 34,959         17,001   17,958  
Foreign currency translation adjustment (7,348)           (3,626) (3,722)  
Stock-based compensation 20,670       20,670        
Exercise of stock options (in shares)     302,000            
Exercise of stock options 834   $ 3   835   (40) 36  
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)     1,356,000            
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (2,604)   $ 14   621   (177) (3,062)  
Unrealized gain (loss) on cash flow hedge, net of tax 24,187           11,934 12,253  
Tax distributions   $ (34,464)             $ (34,464)
Non-controlling interests from the KSP Acquisition 2,000             2,000  
Shares ending balance (in shares) at Sep. 30, 2021     149,332,000 152,117,000          
Stockholders' equity ending balance at Sep. 30, 2021 383,166   $ 1,492 $ 1,522 650,539 (269,820) (33,227) 32,660  
Redeemable Non-Controlling Interests, beginning balance at Dec. 31, 2020 11,804                
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Net (loss) income 5,670                
Tax distributions (2,214)                
Redeemable Non-Controlling Interests, ending balance at Sep. 30, 2021 15,260                
Shares beginning balance (in shares) at Jun. 30, 2021     149,209,000 152,117,000          
Stockholders' equity beginning balance at Jun. 30, 2021 390,272   $ 1,490 $ 1,522 642,657 (265,583) (33,979) 44,165  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (7,783)         (4,237)   (3,546)  
Foreign currency translation adjustment (1,164)           (577) (587)  
Stock-based compensation 7,708       7,708        
Exercise of stock options (in shares)     53,000            
Exercise of stock options 153   $ 1   149   (6) 9  
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (in shares)     70,000            
Restricted stock unit vesting, net of shares withheld to cover payroll taxes (147)   $ 1   25   (8) (165)  
Unrealized gain (loss) on cash flow hedge, net of tax 2,711           1,343 1,368  
Tax distributions   $ (8,584)             $ (8,584)
Shares ending balance (in shares) at Sep. 30, 2021     149,332,000 152,117,000          
Stockholders' equity ending balance at Sep. 30, 2021 383,166   $ 1,492 $ 1,522 $ 650,539 $ (269,820) $ (33,227) $ 32,660  
Redeemable Non-Controlling Interests, beginning balance at Jun. 30, 2021 14,112                
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Net (loss) income 1,691                
Tax distributions (543)                
Redeemable Non-Controlling Interests, ending balance at Sep. 30, 2021 $ 15,260                
v3.21.2
Nature of Operations
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations Nature of Operations
Amneal Pharmaceuticals, Inc. (the “Company”) is a pharmaceutical company specializing in developing, manufacturing, marketing and distributing high-value generic and branded specialty pharmaceutical products across a broad array of dosage forms and therapeutic areas. The Company operates principally in the United States, India, and Ireland, and sells to wholesalers, distributors, hospitals, chain pharmacies and individual pharmacies, either directly or indirectly. The Company is a holding company, whose principal assets are common units (“Amneal Common Units”) of Amneal Pharmaceuticals, LLC (“Amneal”). In 2018, Amneal completed the acquisition of Impax Laboratories, Inc. (“Impax”), a generic and specialty pharmaceutical company.
The group, together with their affiliates and certain assignees, who owned Amneal when it was a private company (the “Amneal Group”) held 50.5% of Amneal Common Units and the Company held the remaining 49.5% as of September 30, 2021. Although the Company has a minority economic interest in Amneal, it is Amneal’s sole managing member, having the sole voting power to make all of Amneal’s business decisions and control its management. Therefore, the Company consolidates the financial statements of Amneal and its subsidiaries. The Company records non-controlling interests for the portion of Amneal’s economic interests that it does not hold.
v3.21.2
Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States of America, should be read in conjunction with Amneal’s annual audited financial statements for the year ended December 31, 2020 included in the Company’s 2020 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements have been omitted from the accompanying unaudited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of September 30, 2021, cash flows for the nine months ended September 30, 2021 and 2020 and the results of its operations, its comprehensive income (loss) and its changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020. The consolidated balance sheet data at December 31, 2020 was derived from the Company's audited annual financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America.
Except for the updates included in this Note, the accounting policies of the Company are set forth in Note 2. Summary of Significant Accounting Policies contained in the Company’s 2020 Annual Report on Form 10-K.
Contingent consideration
Business acquisitions may include future payments that are contingent upon the occurrence of certain pharmaceutical regulatory milestones or net sales of pharmaceutical products. For acquisitions that are accounted for as a business combination, the obligations for such contingent consideration payments are recorded at fair value on the acquisition date. For contingent milestone payments, the Company uses a probability-weighted income approach utilizing an appropriate discount rate. For contingent tiered royalties on net sales, the Company uses a Monte Carlo simulation model. Contingent consideration liabilities are revalued to fair value at the end of each reporting period. Changes in the fair value of contingent consideration, other than changes due to payments, are recognized as a gain or loss and recorded within change in fair value of contingent consideration in the consolidated statements of operations. Refer to Note 3. Acquisitions and Note 10. Fair Value Measurements for additional information.
Foreign Currencies

The Company has operations in the U.S., India, Ireland, and other international jurisdictions. Generally, foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. The U.S. dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the foreign currency translation adjustments in accumulated other comprehensive loss.
Use of Estimates
The preparation of financial statements requires the Company's management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The following are some, but not all, of such estimates: the determination of chargebacks, sales returns, rebates, billbacks, valuation of intangible and other assets acquired in business combinations, allowances for accounts receivable, accrued liabilities, initial and subsequent valuation of contingent consideration recognized in business combinations, stock-based compensation, valuation of inventory balances, the determination of useful lives for product rights and the assessment of expected cash flows used in evaluating goodwill and other long-lived assets for impairment. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides elective amendments for entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.  These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to expand and clarify the scope of Topic 848 to include derivative instruments on discounting transactions. The amendments in this ASU are effective in the same timeframe as ASU 2020-04. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
Reclassification

Prior period balances related to (i) financing lease right-of-use assets of $10 million formerly included in other assets, (ii) current portion of financing lease liabilities of $2 million formerly included in accounts payable and accrued expenses, and (iii) long-term lease liabilities of $2 million formerly included in other long-term liabilities as of December 31, 2020 have been reclassified to their respective balance sheet captions to conform to the current period presentation in the consolidated balance sheets.
v3.21.2
Acquisitions
9 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
Kashiv Specialty Pharmaceuticals, LLC Acquisition
On January 11, 2021, the Company and Kashiv Biosciences, LLC (a related party, see Note 15. Related Party Transactions) (“Kashiv”) entered into a definitive agreement for Amneal to acquire a 98% interest in Kashiv Specialty Pharmaceuticals, LLC (“KSP”), a subsidiary of Kashiv focused on the development of innovative drug delivery platforms, novel 505(b)(2) drugs and complex generics (the “KSP Acquisition”).
On April 2, 2021, the Company completed the KSP Acquisition.  Under the terms of the transaction, the cash portion of the consideration was $104 million, comprised of a purchase price of $100 million (including initial and deferred consideration) and a working capital adjustment of $4 million.  The initial cash purchase price was funded by cash on hand. For further detail of the purchase price, refer to the table below.
For the nine months ended September 30, 2021, the Company incurred $3 million in transaction costs associated with the KSP Acquisition, which is recorded in acquisition, transaction-related and integration expenses. Transaction costs associated with the KSP Acquisition were immaterial for the three months ended September 30, 2021 and for both of the three and nine months ended September 30, 2020.

The KSP Acquisition was accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer.
The preliminary purchase price was calculated as follows (in thousands):
Cash, including working capital payments$74,440 
Deferred consideration (1)
30,099 
Contingent consideration (regulatory milestones) (2)
500 
Contingent consideration (royalties) (2)
5,600 
Settlement of Amneal trade accounts payable due to KSP (3)
(7,117)
Fair value consideration transferred$103,522 

(1)The deferred consideration is stated at the preliminary fair value estimate of $30.1 million, which is the $30.5 million contractually stated amount less a $0.4 million discount. The deferred consideration consists of $30 million due on January 11, 2022 and $0.5 million due on March 10, 2022. As the deferred consideration is non-interest bearing, the Company, using guideline companies and market borrowings with comparable risk profiles, discounted the deferred consideration at 1.7% over the period from April 2, 2021 to the maturity dates, for a fair value of $30 million on the date of acquisition. This discount will be amortized to interest expense over the life of the deferred consideration utilizing the effective interest rate method.
(2)Kashiv is eligible to receive up to an additional $8 million in contingent payments upon the achievement of certain regulatory milestones and potential royalty payments from high single-digits to mid double-digits, depending on the amount of aggregate annual net sales for certain future pharmaceutical products. The estimated fair value of contingent consideration on the acquisition date was $6 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, probability of achievement of milestones, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.
(3)Represents trade accounts payable due to KSP that were effectively settled upon closing of the KSP Acquisition.
The following is a summary of the preliminary purchase price allocation for the KSP Acquisition (in thousands):
Preliminary Fair Values as of
April 2, 2021
Cash$112 
Restricted cash500 
Prepaid expenses and other current assets381 
Property, plant and equipment5,375 
Goodwill43,830 
Intangible assets56,500 
Operating lease right-of-use assets9,367 
Total assets acquired116,065 
Accounts payable and accrued expenses1,239 
Operating lease liability9,177 
Related party payable127 
Total liabilities assumed10,543 
Non-controlling interests2,000 
Fair value of consideration transferred$103,522 
Total acquired intangible assets of $56.5 million were comprised of marketed product rights of $29.4 million and in-process research and development (“IPR&D”) of $27.1 million.
The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

Fair Value
Weighted-Average
Useful Life (in years)
Marketed product rights$29,400 5.9
The estimated fair value of the in-process research and development and identifiable intangible assets was determined using the "income approach," which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of the cash flows an asset would generate over its remaining useful life. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management's best estimates as of the closing date of the KSP Acquisition on April 2, 2021.
Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset or product (including net revenues, cost of sales, R&D, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.
Goodwill is calculated as the excess of the consideration transferred and fair value of the non-controlling interests over the net assets recognized. Of the total goodwill acquired in connection with the KSP Acquisition, $41 million was allocated to the Company’s Generics segment and $3 million was allocated to the Specialty segment, based on the probability weighted cash flows of the assets acquired as of the date of acquisition.
For the three and nine months ended September 30, 2021, the KSP Acquisition contributed operating loss of $8 million and $14 million, respectively, which included approximately $2 million and $4 million of amortization expense from intangible assets acquired in the KSP Acquisition, to the Company’s consolidated results of operations in the corresponding periods. Offsetting the operating loss was a reduction of third-party consulting services and the elimination of royalties due to KSP.
AvKARE and R&S Acquisitions
On December 10, 2019, the Company, through its investment in Rondo Partners, LLC (“Rondo”), entered into an equity purchase agreement (“Rondo Equity Purchase Agreement”) and an operating agreement to acquire approximately a 65.1% controlling financing interest in both AvKARE Inc., a Tennessee corporation, and Dixon-Shane, LLC d/b/a R&S Northeast LLC, a Kentucky limited liability company (“R&S”) (collectively the “Rondo Acquisitions”). Prior to closing, AvKARE, Inc. converted to a limited liability company, AvKARE, LLC. AvKARE, LLC is one of the largest private label providers of generic pharmaceuticals in the U.S. federal agency sector, primarily focused on serving the Department of Defense and the Department of Veterans Affairs. R&S is a national pharmaceutical wholesaler focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.
On January 31, 2020, the Company completed the Rondo Acquisitions.  The purchase price of $294 million, included cash of $254 million and the issuance of long-term promissory notes to the sellers with an aggregate principal amount of $44 million (estimated fair value of $35 million) (the “Sellers Notes”) and a short-term promissory note (the “Short-Term Seller Note”) with a principal amount of $1 million to the sellers.  The cash purchase price was funded by $76 million of cash on hand and $178 million of proceeds from a $180 million term loan.  The remaining $2 million consisted of working capital costs. The Company is not party to or a guarantor of the term loan, Sellers Notes or Short-Term Sellers Note. For further detail of the purchase price, refer to the table below.
For the nine months ended September 30, 2020, there were $1 million of transaction costs associated with the Rondo Acquisitions recorded in acquisition, transaction-related and integration expenses (none for the three and nine months ended September 30, 2021 or three months ended September 30, 2020).
The Rondo Acquisitions were accounted for under the acquisition method of accounting, with Amneal as the accounting acquirer of AvKARE, LLC and R&S.
The purchase price was calculated as follows (in thousands):
Cash$254,000 
Sellers Notes (1)
35,033 
Settlement of Amneal trade accounts receivable from R&S (2)
6,855 
Short-Term Seller Note (3)
1,000 
Working capital adjustment (4)
(2,640)
Fair value consideration transferred$294,248 
(1)In accordance with ASC 805, Business Combinations, all consideration transferred was measured at its acquisition-date fair value. The Sellers Notes are stated at the fair value estimate of $35 million, which is the $44 million aggregate principal amount less a $9 million discount.  The fair value of the Sellers Notes was estimated using the Monte-Carlo simulation approach under the option pricing framework.
(2)Represents trade accounts receivable from R&S that were effectively settled upon closing of the Rondo Acquisitions.
(3)Represents the principal amount due on the Short-Term Seller Note, which approximates fair value. The entire Short-Term Seller Note was repaid in February 2021.
(4)Represents a working capital adjustment pursuant to the terms of the purchase agreement. The entire amount was received in cash by the Company in September 2020.
The following is a summary of the purchase price allocation for the Rondo Acquisitions (in thousands):
Final Fair Values as of
January 31, 2020
Trade accounts receivable, net$46,702 
Inventories71,908 
Prepaid expenses and other current assets11,316 
Related party receivables61 
Property, plant and equipment5,278 
Goodwill103,679 
Intangible assets, net130,800 
Operating lease right-of-use assets - related party5,544 
Total assets acquired375,288 
Accounts payable and accrued expenses62,489 
Related party payables1,532 
Operating lease liabilities - related party5,544 
Total liabilities assumed69,565 
Redeemable non-controlling interests11,475 
Fair value of consideration transferred$294,248 

The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

Fair Values
Weighted-Average
Useful Life
Government licenses$66,700 7 years
Government contracts22,000 4 years
National contracts28,600 5 years
Customer relationships13,000 10 years
Trade name500 6 years
$130,800 
The estimated fair value of the government licenses was determined using the “with-and-without method,” which is a valuation technique that provides an estimate of the fair value of an intangible asset that is equal to the difference between the present value of the prospective revenues and expenses for the business with and without the subject intangible asset in place. The estimated fair values of the government contracts, national contracts, and customer relationships were determined using the “income approach,” which is a valuation technique that provides an estimate of the fair value of an intangible asset based on market participant expectations of the cash flows that an intangible asset would generate over its remaining useful life. The estimated fair value of the trade name was determined using the “relief from royalty method,” which is a valuation technique that provides an estimate of the fair value of an intangible asset equal to the present value of the after-tax royalty savings attributable to owning the intangible asset. The assumptions, including the expected projected cash flows, utilized in the purchase price allocation and in determining the purchase price were based on management's best estimates as of the closing date of the Rondo Acquisitions on January 31, 2020.
Some of the more significant assumptions inherent in the development of those asset valuations included the estimated net cash flows for each year for each asset (including net revenues, cost of sales, selling and marketing costs and working capital / contributory asset charges), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, competitive trends impacting the asset and each cash flow stream, as well as other factors. The underlying assumptions used to prepare the discounted cash flow analysis may change; accordingly, for these and other reasons, actual results may vary significantly from estimated results.
The Sellers Notes and redeemable non-controlling interests were estimated using the Monte-Carlo simulation approach under the option pricing framework. The non-controlling interests are redeemable at the option of either the non-controlling interest holder or Amneal. The fair value of the redeemable non-controlling interests considers these redemption rights.
Of the $104 million of goodwill acquired in connection with the Rondo Acquisitions, approximately $70 million was allocated to the Company’s AvKARE segment and approximately $34 million was allocated to the Generics segment.  Goodwill was allocated to the Generics segment as net revenue of products manufactured from Amneal and distributed by the Rondo Acquisitions is reflected in Generics’ segment results.  Goodwill is calculated as the excess of the fair value of the consideration transferred and the fair value of the redeemable non-controlling interests over the fair value of the net assets recognized. Factors that contributed to the recognition of goodwill include Amneal’s intent to diversify its business and open growth opportunities in the large, complex and growing federal healthcare market.
Unaudited Pro Forma Information
The unaudited pro forma combined results of operations for the three and nine months ended September 30, 2021 and 2020 (assuming the closing of the Rondo Acquisitions occurred on January 1, 2019 and the closing of the KSP Acquisition occurred on January 1, 2020) are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net revenue$528,593 $519,349 $1,556,773 $1,513,505 
Net (loss) income$(5,964)$(24,736)$42,852 $60,923 
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.$(4,174)$(11,358)$18,115 $84,828 

The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the closing of the Rondo Acquisitions taken place on January 1, 2019 and the closing of the KSP Acquisition taken place on January 1, 2020. Furthermore, the pro forma results do not purport to project the future results of operations of the Company.
Adjustments to arrive at the unaudited pro forma information primarily related to increases in cost of goods sold and selling, general and administrative expenses for amortization of acquired intangible assets, net of the applicable tax impact.
v3.21.2
Revenue Recognition
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when the Company transfers control of its products to the customer, which typically occurs at a point-in-time, either upon shipment or delivery. Substantially all of the Company’s net revenues relate to products which are transferred to the customer at a point-in-time.
Concentration of Revenue
The following table summarizes revenues from each of our customers which individually accounted for 10% or more of our total gross revenues:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Customer A27 %32 %30 %34 %
Customer B26 %26 %26 %26 %
Customer C27 %26 %26 %24 %
Disaggregated Revenue
The Company's significant therapeutic classes for its Generics and Specialty segments and sales channels for its AvKARE segment, as determined based on net revenue for each of the three and nine months ended September 30, 2021 and 2020 are set forth below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Generics
Anti-Infective$9,406 $9,813 $24,996 $32,589 
Hormonal107,614 93,580 325,971 271,499 
Antiviral (1)
9,762 9,236 1,560 26,015 
Central Nervous System91,263 107,139 294,182 302,949 
Cardiovascular System35,692 28,517 107,137 82,876 
Gastroenterology17,172 21,371 56,333 59,249 
Oncology21,203 13,927 73,683 45,349 
Metabolic Disease/Endocrine12,893 9,987 26,331 33,395 
Respiratory8,233 10,875 26,874 28,203 
Dermatology14,860 14,818 42,556 42,402 
Other therapeutic classes18,983 22,657 39,857 74,592 
International and other46 — 592 1,947 
Total Generics net revenue347,127 341,920 1,020,072 1,001,065 
Specialty
Hormonal/Metabolic16,422 12,934 49,230 41,033 
Central Nervous System68,869 68,061 201,710 210,428 
Other therapeutic classes7,454 6,873 26,371 18,640 
Total Specialty net revenue92,745 87,868 277,311 270,101 
AvKARE (2)
Distribution48,048 53,399 141,863 116,824 
Government Label29,898 28,902 90,142 75,353 
Institutional7,873 4,890 18,832 12,814 
Other2,902 2,315 8,553 6,332 
Total AvKARE net revenue88,721 89,506 259,390 211,323 
Total net revenue$528,593 $519,294 $1,556,773 $1,482,489 
(1) Antiviral net revenue for the nine months ended September 30, 2021 decreased from the prior year period, primarily due to a decline in Oseltamivir (generic Tamiflu®) sales from lower demand and increased returns activity above historical levels due to decreased influenza activity during the COVID-19 pandemic.
(2) The AvKARE segment consists of the businesses acquired in the Rondo Acquisitions on January 31, 2020. Net revenue for the nine months ended September 30, 2020 represents eight months of activity.
A rollforward of the major categories of sales-related deductions for the nine months ended September 30, 2021 is as follows (in thousands):
Contract
Charge - Backs
and Sales
Volume
Allowances
Cash Discount
Allowances
Accrued
Returns
Allowance
Accrued
Medicaid and
Commercial
Rebates
Balance at December 31, 2020$628,804 $22,690 $174,984 $131,088 
Provision related to sales recorded in the period2,315,814 79,229 72,052 94,421 
Credits/payments issued during the period(2,503,722)(79,526)(64,709)(130,990)
Balance at September 30, 2021$440,896 $22,393 $182,327 $94,519 
v3.21.2
Alliance and Collaboration
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Alliance and Collaboration Alliance and Collaboration
The Company has entered into several alliance, collaboration, license, distribution and similar agreements with respect to certain of its products and services with third-party pharmaceutical companies. The consolidated statements of operations include revenue recognized under agreements the Company has entered into to develop marketing and/or distribution relationships with its partners to fully leverage the technology platform and revenue recognized under development agreements which generally obligate the Company to provide research and development services over multiple periods. The Company's significant arrangements are discussed below.
Distribution, License, Development and Supply Agreement with AstraZeneca UK Limited
In January 2012, Impax entered into an agreement with AstraZeneca UK Limited (“AstraZeneca”) to distribute branded products under the terms of a distribution, license, development and supply agreement (the “AZ Agreement”). The parties subsequently entered into a First Amendment to the AZ Agreement dated May 31, 2016 (as amended, the “AZ Amendment”). Under the terms of the AZ Agreement, AstraZeneca granted to Impax an exclusive license to commercialize the tablet, orally disintegrating tablet and nasal spray formulations of Zomig® (zolmitriptan) products for the treatment of migraine headaches in the United States and in certain U.S. territories, except during an initial transition period when AstraZeneca fulfilled all orders of Zomig® products on Impax’s behalf and AstraZeneca paid to Impax the gross profit on such Zomig® products. Pursuant to the AZ Amendment, under certain conditions, and depending on the nature and terms of the study agreed to with the FDA, Impax agreed to conduct, at its own expense, the juvenile toxicity study and pediatric study required by the FDA under the Pediatric Research Equity Act (“PREA”) for approval of the nasal formulation of Zomig® for the acute treatment of migraine in pediatric patients ages six through eleven years old, as further described in the study protocol mutually agreed to by the parties (the “PREA Study”). In consideration for Impax conducting the PREA Study at its own expense, the AZ Amendment provided for the total royalty payments payable by Impax to AstraZeneca on net sales of Zomig® products under the AZ Agreement to be reduced by an aggregate amount of $30 million to be received in quarterly amounts specified in the AZ Amendment beginning from the quarter ended June 30, 2016 and through the quarter ended December 31, 2020. In the event the royalty reduction amounts exceed the royalty payments payable by Impax to AstraZeneca pursuant to the AZ Agreement in any given quarter, AstraZeneca was required to pay Impax an amount equal to the difference between the royalty reduction amount and the royalty payment payable by Impax to AstraZeneca. Impax’s commitment to perform the PREA Study could have been terminated, without penalty, under certain circumstances as set forth in the AZ Amendment. The Company recognizes the amounts received from AstraZeneca for the PREA Study as a reduction to research and development expense. The PREA Study was completed during March 2021.
In May 2013, Impax’s exclusivity period for branded Zomig® tablets and orally disintegrating tablets expired and Impax launched authorized generic versions of those products in the United States. As discussed above, pursuant to the AZ Amendment, the total royalty payments payable by Impax to AstraZeneca on net sales of Zomig ® products under the AZ Agreement was reduced by certain specified amounts beginning from the quarter ended June 30, 2016 and through the quarter ended December 31, 2020, with such reduced royalty amounts totaling an aggregate amount of $30 million. The Company recorded cost of sales for royalties under this agreement of $3 million and $9 million for the three and nine months ended September 30, 2021, respectively, and $3 million and $12 million for the three and nine months ended September 30, 2020, respectively.
Biosimilar Licensing and Supply Agreement
On May 7, 2018, the Company entered into a licensing and supply agreement with Mabxience S.L. for its biosimilar candidate for Avastin® (bevacizumab). The supply agreement was subsequently amended on March 2, 2021 and the licensing agreement was amended on March 4, 2021. The Company will be the exclusive partner in the U.S. market. The Company will pay development and regulatory milestone payments as well as commercial milestone payments on reaching pre-agreed sales targets in the market to Mabxience, up to $78 million. For the nine months ended September 30, 2021, the Company recognized $10 million of research and development expense related to the agreement (none for the three months ended September 30, 2021). For the nine months ended September 30, 2020, the Company expensed a milestone of $5 million in research and development expense related to the agreement (none for the three months ended September 30, 2020).
Agreements with Kashiv Biosciences, LLC
For detail on the Company’s related party agreements with Kashiv Biosciences, LLC, refer to Note 15. Related Party Transactions.
v3.21.2
(Loss) Earnings per Share
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
(Loss) Earnings per Share (Loss) Earnings per Share
Basic (loss) earnings per share of the Company’s class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding during the period. Diluted (loss) earnings per share of class A common stock is computed by dividing net (loss) income attributable to Amneal Pharmaceuticals, Inc. by the weighted-average number of shares of class A common stock outstanding, adjusted to give effect to potentially dilutive securities.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of class A common stock (in thousands, except per share amounts):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.$(4,237)$(8,975)$17,001 $94,096 
Denominator:
Weighted-average shares outstanding - basic149,290 147,558 148,771 147,377 
Effect of dilutive securities:
Stock options— — 785 320 
Restricted stock units— — 2,099 925 
Weighted-average shares outstanding - diluted
149,290 147,558 151,655 148,622 
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:
Basic$(0.03)$(0.06)$0.11 $0.64 
Diluted$(0.03)$(0.06)$0.11 $0.63 
Shares of the Company's class B common stock do not share in the earnings or losses of the Company and, therefore, are not participating securities. As such, separate presentation of basic and diluted (loss) earnings per share of class B common stock under the two-class method has not been presented.
The following table presents potentially dilutive securities excluded from the computations of diluted (loss) earnings per share of class A common stock (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Stock options
3,102 
(4)
3,923 
(4)
347 
(1)
671 
(1)
Restricted stock units
8,171 
(4)
9,266 
(4)
— — 

Performance stock units
5,184 
(4)
3,001 
(4)
5,184 
(2)
3,001 
(2)
Shares of class B common stock152,117 
(3)
152,117 
(3)
152,117 
(3)
152,117 
(3)
(1)Excluded from the computation of diluted earnings per share of class A common stock because the exercise price of the stock options exceeded the average market price of the class A common stock during the period (out-of-the-money).
(2)Excluded from the computation of diluted earnings per share of class A common stock because the performance vesting conditions were not met for the nine months ended September 30, 2021 and 2020.
(3)Shares of class B common stock are considered potentially dilutive shares of class A common stock. Shares of class B common stock have been excluded from the computations of diluted earnings per common share because the effect of their inclusion would have been anti-dilutive under the if-converted method.   
(4)Excluded from the computation of diluted loss per share of class A common stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for both the three months ended September 30, 2021 and 2020.
v3.21.2
Income Taxes
9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the three months ended September 30, 2021, the Company's provision for income taxes and effective tax rates were $4 million and (198.2)%, respectively, compared to $0.1 million and (0.7)%, respectively, for the three months ended September 30, 2020.
For the nine months ended September 30, 2021, the Company’s provision for (benefit from) income taxes and effective tax rates were $7 million and 14.8%, respectively, compared to $(106) million and 349.3%, respectively, for the nine months ended September 30, 2020. The year-over-year change in provision for (benefit from) income taxes was primarily related to a $110 million discrete income tax benefit from the carryback of U.S. Federal Net Operating Loss (“NOL”) deferred tax assets (“DTAs”) under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”).
As of September 30, 2019, the Company established a valuation allowance based upon all available objective and verifiable evidence both positive and negative, including historical levels of pre-tax income (loss) both on a consolidated basis and tax reporting entity basis, legislative developments, expectations and risks associated with estimates of future pre-tax income, and prudent and feasible tax planning strategies. The Company estimated that as of September 30, 2019, it had generated a cumulative consolidated three-year pre-tax loss, which continued as of December 31, 2020.  As a result of the initial September 30, 2019 and December 31, 2020 analyses, the Company determined that it remained more likely than not that it would not realize the benefits of its gross DTAs and therefore maintained its valuation allowance. As of December 31, 2020, this valuation allowance was $423 million, and it reduced the carrying value of these gross DTAs, net of the impact of the reversal of taxable temporary differences, to zero. As of September 30, 2021, based on its evaluation of available positive and negative evidence, the Company had maintained its position with respect to the valuation allowance.
On March 27, 2020, the CARES Act was signed into law. The CARES Act is an emergency economic stimulus package in response to the COVID-19 pandemic which, among other things, includes provisions relating to income and non-income-based tax laws. The CARES Act permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs originating in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate refunds of previously paid income taxes. As a result of the CARES Act in 2020, the Company carried back approximately $345 million in NOLs generated in 2018 to prior taxable income years.
ASC 740, Income Taxes, requires the effect from adjusting deferred tax assets or changes to valuation allowances due to the CARES Act to be recognized as a component of income taxes expense or benefit in the interim period that includes the period in which the legislation is enacted (quarter ended March 31, 2020), and it cannot be allocated to subsequent interim periods by an adjustment of the estimated annual effective tax rate. In the three months ended March 31, 2020, the Company reclassified the 2018 NOL carryback amount for previously paid income taxes to income tax receivable and reversed the corresponding valuation allowance. In carrying back the 2018 loss to an earlier year, the Company is able to benefit the losses at a 35% tax rate rather than the current U.S. corporate tax rate of 21%.  Accordingly, the Company recorded a discrete income tax benefit of $110 million, for the nine months ended September 30, 2020. During July 2020, the Company received a cash refund for $106 million of the $110 million NOL carryback, plus interest of approximately $4 million. During February 2021, the Company received an additional cash refund for $2 million, plus interest. The remainder of the NOL carryback is expected to be received in the next twelve months.
The Company entered into a tax receivable agreement (“TRA”) for which it is generally required to pay the other holders of Amneal Common Units 85% of the applicable tax savings, if any, in U.S. federal and state income tax that it is deemed to realize as a result of certain tax attributes of their Amneal Common Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Amneal Common Units for shares of class A Common Stock and (ii) tax benefits attributable to payments made under the TRA.  In conjunction with the valuation allowance recorded on the DTAs at September 30, 2019, the Company reversed the TRA liability.
The projection of future taxable income involves significant judgment. Actual taxable income may differ from the Company’s estimates, which could significantly impact the timing of the recognition of the contingent liability under the TRA. As noted above, the Company has determined it is more-likely-than-not it will be unable to utilize all of its DTAs subject to the TRA; therefore, as of September 30, 2021, the Company has not recognized the contingent liability under the TRA related to the tax savings it may realize from common units sold or exchanged. If utilization of these DTAs becomes more likely than not in the future, at such time, Amneal will recognize a liability under the TRA as a result of basis adjustments under Internal Revenue Code Section 754. As of both September 30, 2021 and December 31, 2020, the contingent liability, if recognized, amounts to approximately $206 million.
The timing and amount of any payments under the TRA may vary depending upon a number of factors, including the timing and number of Amneal common units sold or exchanged for the Company's class A Common Stock, the price of the Company's class A Common Stock on the date of sale or exchange, the timing and amount of the Company's taxable income, and the tax rate in effect at the time of realization of the Company's taxable income (the TRA liability is determined based on a percentage of the corporate tax savings from the use of the TRA's attributes). Further sales or exchanges occurring subsequent to September 30, 2021 could result in future Amneal tax deductions and obligations to pay 85% of such benefits to the holders of Amneal common units. These obligations could be incremental to and substantially larger than the approximate $206 million contingent liability as of September 30, 2021 described above. Under certain conditions, such as a change of control or other early termination event, the Company could be obligated to make TRA payments in advance of tax benefits being realized. Payments could also be in excess of the tax savings that the Company may ultimately realize.

Any future recognition of these TRA liabilities will be recorded through charges in the Company’s consolidated statements of operations.  However, if the tax attributes are not utilized in future years, it is reasonably possible no amounts would be paid under the TRA.  Should the Company determine that a DTA with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and if a resulting TRA payment is determined to be probable, a corresponding TRA liability will be recorded.
v3.21.2
Trade Accounts Receivable, Net
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Trade Accounts Receivable, Net Trade Accounts Receivable, Net
Trade accounts receivable, net is comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Gross accounts receivable$1,092,767 $1,291,785 
Allowance for credit losses(1,524)(1,396)
Contract charge-backs and sales volume allowances(440,896)(628,804)
Cash discount allowances(22,393)(22,690)
Subtotal(464,813)(652,890)
Trade accounts receivable, net$627,954 $638,895 
Concentration of Receivables
The following table summarizes receivables from each of our customers representing 10% or more of the Company’s gross trade receivables:
September 30,
2021
December 31,
2020
Customer A31 %39 %
Customer B24 %20 %
Customer C28 %26 %
v3.21.2
Inventories
9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories are comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Raw materials
$214,284 $209,180 
Work in process
42,851 40,937 
Finished goods
263,110 240,532 
Total inventories$520,245 $490,649 
v3.21.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. Valuation techniques used to measure fair value should maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company uses the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Value is determined using pricing models, discounted cash flow methodologies, or similar techniques and also includes instruments for which the determination of fair value requires significant judgment or estimation.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification for each reporting period. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands):
Fair Value Measurement Based on
September 30, 2021TotalQuoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Liabilities
Interest rate swap (1)
$29,716 $— $29,716 $— 
Deferred compensation plan liabilities (2)
$13,686 $— $13,686 $— 
Contingent consideration liability (3)
$6,400 $— $— $6,400 
December 31, 2020
Liabilities
Interest rate swap (1)
$53,903 $— $53,903 $— 
Deferred compensation plan liabilities (2)
$14,007 $— $14,007 $— 
(1)The fair value measurement of the Company’s interest rate swap classified within Level 2 of the fair value hierarchy is a model-derived valuation as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present, and future market conditions. Refer to Note 11. Financial Instruments for information on the Company's interest rate swap.
(2)As of both September 30, 2021 and December 31, 2020, deferred compensation plan liabilities of $2 million and $12 million were recorded in current and non-current liabilities, respectively. These liabilities are recorded at the value of the amount owed to the plan participants, with changes in value recognized as compensation expense. The calculation of the deferred compensation plan obligation is derived from observable market data by reference to hypothetical investments selected by the participants.
(3)The fair value measurement of contingent consideration liability has been classified as a Level 3 recurring liability as its valuation requires judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for various inputs, the estimated fair value could be higher or lower than what the Company
determined. As of September 30, 2021, contingent consideration liability of $6 million was recorded within related party payable-long term. Refer to Note 3. Acquisitions, for additional information related to the KSP Acquisition.
There were no transfers between levels in the fair value hierarchy during the nine months ended September 30, 2021.
Contingent consideration

On April 2, 2021, the Company completed the KSP Acquisition, which provided for contingent milestone payments of up to an aggregate of $8 million (undiscounted) upon the achievement of certain regulatory milestones, as well as contingent royalty payments that are tiered depending on the net sales amount of aggregate annual net sales for certain future pharmaceutical products.

The following table provides a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) through September 30, 2021 (in thousands):

Nine Months Ended
September 30, 2021
Balance, beginning of period$— 
Addition due to the KSP Acquisition6,100 
Change in fair value during period300 
Balance, end of period$6,400 


The fair value measurement of the contingent consideration liabilities was determined based on significant unobservable inputs, including the discount rate, estimated probabilities of success, timing of achieving specified regulatory milestones and the estimated amount of future sales of the acquired products. The contingent consideration liability is estimated by applying a probability-weighted expected payment model for contingent milestone payments and a Monte Carlo simulation model for contingent royalty payments, which are then discounted to present value. Changes to the fair value of the contingent consideration liabilities can result from changes to one or a number of the aforementioned inputs. If different assumptions were used for various inputs, the estimated fair value could be higher or lower than what the Company determined.

The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of September 30, 2021:


Contingent Consideration Liability
Fair Value as of
September 30, 2021
(in thousands)
Unobservable inputRange
Weighted Average(1)
Regulatory Milestones$500Discount rate2.8 %-4.6%3.0%
Probability of payment1.8 %-20.0%16.7%
Projected year of payment2023-20272023
Royalties$5,900Discount rate11.0 %-11.0%11.0%
Probability of payment1.8 %-20.0%18.0%
Projected year of payment2023-20322029

(1) Unobservable inputs were weighted by the relative fair value of each product candidate acquired.

Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
The carrying amounts of cash, accounts receivable and accounts payable approximate their fair values due to the short-term maturity of these instruments.
The Company's outstanding Term Loan falls into the Level 2 category within the fair value level hierarchy. The fair value was determined using market data for valuation. The fair value of the Term Loan as of both September 30, 2021 and December 31, 2020 was approximately $2.6 billion.
The Rondo Term Loan entered into on January 31, 2020 falls into the Level 2 category within the fair value level hierarchy. During the three months ended September 30, 2021, the Company prepaid $25 million towards the outstanding principal of the Rondo Term Loan. The fair value of the Rondo Term Loan at September 30, 2021 and December 31, 2020 was $141 million and $172 million, respectively.
The Sellers Notes fall into the Level 2 category within the fair value level hierarchy. The carrying value of the Sellers Notes at September 30, 2021 and December 31, 2020 was $38 million and $36 million, respectively, which approximate their fair values.
Refer to Note 17. Debt in our 2020 Annual Report on Form 10-K for detailed information about our indebtedness, including definitions of terms.
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
There were no non-recurring fair value measurements during the nine months ended September 30, 2021 and 2020.
v3.21.2
Financial Instruments
9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
The Company uses an interest rate swap to manage its exposure to market risks for changes in interest rates.
Interest Rate Risk
The Company is exposed to interest rate risk on its debt obligations.  The Company's debt obligations consist of variable-rate and fixed-rate debt instruments.  The Company's primary objective is to achieve the lowest overall cost of funding while managing the variability in cash outflows within an acceptable range.  In order to achieve this objective, the Company has entered into an interest rate swap on the Term Loan.
Interest income earned on cash and cash equivalents may fluctuate as interest rates change; however, due to their relatively short maturities, the Company does not hedge these assets or their investment cash flows because the impact of interest rate risk is not material.
Interest Rate Derivative – Cash Flow Hedge
The interest rate swap involves the periodic exchange of payments without the exchange of underlying principal or notional amounts. In October 2019, the Company entered into an interest rate lock agreement for a total notional amount of $1.3 billion to hedge part of the Company's interest rate exposure associated with the variability in future cash flows from changes in the one-month LIBOR associated with its Term Loan.
As of September 30, 2021, the total loss, net of income taxes, related to the Company’s cash flow hedge was $30 million, of which $15 million was recognized in accumulated other comprehensive loss and $15 million was recognized in non-controlling interests.
A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows (in thousands):
September 30, 2021December 31, 2020
Derivatives Designated as Hedging InstrumentsBalance Sheet
Classification
Fair ValueBalance Sheet
Classification
Fair Value
Variable-to-fixed interest rate swapOther long-term liabilities$29,716 Other long-term liabilities$53,903 
v3.21.2
Goodwill and Intangible Assets
9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in goodwill for the nine months ended September 30, 2021 and for the year ended December 31, 2020 were as follows (in thousands):
September 30,
2021
December 31,
2020
Balance, beginning of period$522,814 $419,504 
Goodwill acquired during the period43,830 103,679 
Currency translation(238)(369)
Balance, end of period$566,406 $522,814 
As of September 30, 2021, $364 million, $133 million, and $70 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. As of December 31, 2020, $361 million, $92 million, and $70 million of goodwill was allocated to the Specialty, Generics, and AvKARE segments, respectively. Refer to Note 3. Acquisitions for additional information related to goodwill acquired during the respective periods.
Intangible assets at September 30, 2021 and December 31, 2020 were comprised of the following (in thousands):
September 30, 2021December 31, 2020
Weighted-Average
Amortization Period
(in years)
CostAccumulated
Amortization
NetCostAccumulated
Amortization
Net
Amortizing intangible assets:
Product rights8.3$1,180,005 $(434,824)$745,181 $1,153,096 $(328,587)$824,509 
Other intangible assets5.1133,800 (51,779)82,021 133,800 (33,078)100,722 
Subtotal$1,313,805 $(486,603)$827,202 $1,286,896 $(361,665)$925,231 
In-process research and development
405,525 — 405,525 379,395 — 379,395 
Total intangible assets$1,719,330 $(486,603)$1,232,727 $1,666,291 $(361,665)$1,304,626 

During the nine months ended September 30, 2021, the Company recognized $57 million of intangible assets associated with the KSP Acquisition, consisting of $29 million of product rights and $27 million of IPR&D. Product rights are amortized to cost of goods sold over their estimated useful lives. During the nine months ended September 30, 2020, the Company recognized $131 million of intangible assets associated with the Rondo Acquisitions, of which all are classified in other intangible assets in the table above.  These intangible assets consist of government licenses, government contracts, national contracts, customer relationships and a trade name and are amortized to selling, general, and administrative over their estimated useful lives.  Refer to Note 3. Acquisitions for additional information.
Amortization expense related to intangible assets recognized is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Amortization$43,809 $44,548 $129,001 $131,100 
The following table presents future amortization expense for the next five years and thereafter, excluding $406 million of IPR&D intangible assets (in thousands):
Future
Amortization
Remainder of 2021$43,701 
2022164,385 
2023150,681 
2024140,269 
2025100,177 
Thereafter227,989 
   Total$827,202 

The Company reviews intangible assets with finite lives for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, and reviews indefinite-lived intangible assets, including IPR&D, are tested for impairment if impairment indicators arise and, at a minimum, annually.
For the three months ended September 30, 2021, the Company recognized a $0.7 million intangible asset impairment, which was recognized in cost of goods sold impairment charges. For the nine months ended September 30, 2021, the Company recognized $1.4 million of intangible asset impairments, of which $0.7 million was recognized in cost of goods sold impairment charges and $0.7 million was recognized in in-process research and development impairment charges.
The impairment charges for the three months ended September 30, 2021 was related to two marketed products which experienced significant price erosion during 2021. The impairment charges for the nine months ended September 30, 2021 related to the two aforementioned marketed products, and one IPR&D product, which experienced a delay in its estimated launch date.
For the three months ended September 30, 2020, the Company recognized a $32 million intangible asset impairment, which was recognized in cost of goods sold impairment charges. For the nine months ended September 30, 2020, the Company recognized $36 million of intangible asset impairments, of which $35 million was recognized in cost of goods sold impairment charges and $1 million was recognized in in-process research and development impairment charges.
The impairment charge for the three months ended September 30, 2020 was related to one marketed product for which the supply agreement ended under an early termination due to market conditions.
The impairment charges for the nine months ended September 30, 2020 were primarily related to six marketed products and two IPR&D products.  For the marketed products, four products experienced significant price erosion during 2020, without an offsetting increase in customer demand, resulting in significantly lower than expected future cash flows and negative margins, while one product had its contract terminated, and one product’s supply agreement ended under an early termination due to market conditions. The IPR&D charges were associated with two products, one of which experienced a delay in its estimated launch date and the other of which was canceled due to the withdrawal of our development partner.
v3.21.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
Commercial Manufacturing, Collaboration, License, and Distribution Agreements
The Company continues to seek to enhance its product line and develop a balanced portfolio of differentiated products through product acquisitions and in-licensing. Accordingly, the Company, in certain instances, may be contractually obligated to make potential future development, regulatory, and commercial milestone, royalty and/or profit sharing payments in conjunction with collaborative agreements or acquisitions that the Company has entered into with third parties. The Company has also licensed certain technologies or intellectual property from various third parties. The Company is generally required to make upfront payments as well as other payments upon successful completion of regulatory or sales milestones. The agreements generally permit the Company to terminate the agreement with no significant continuing obligation. The Company could be required to make significant payments pursuant to these arrangements. These payments are contingent upon the occurrence of certain future
events and, given the nature of these events, it is unclear when, if ever, the Company may be required to pay such amounts. Further, the timing of any future payment is not reasonably estimable. Certain of these arrangements are with related parties (refer to Note 15. Related Party Transactions).
Contingencies
Legal Proceedings
The Company's legal proceedings are complex, constantly evolving and subject to uncertainty. As such, the Company cannot predict the outcome or impact of the legal proceedings set forth below. Additionally, the Company is subject to legal proceedings that are not set forth below. While the Company believes it has valid claims and/or defenses to the matters described below, the nature of litigation is unpredictable, and the outcome of the following proceedings could include damages, fines, penalties and injunctive or administrative remedies. For any proceedings where losses are probable and reasonably capable of estimation, the Company accrues for a potential loss. When the Company has a probable loss for which a reasonable estimate of the liability is a range of losses and no amount within that range is a better estimate than any other amount, the Company records the loss at the low end of the range. While these accruals have been deemed reasonable by the Company’s management, the assessment process relies heavily on estimates and assumptions that may ultimately prove inaccurate or incomplete. Additionally, unforeseen circumstances or events may lead the Company to subsequently change its estimates and assumptions. Unless otherwise indicated below, the Company is unable at this time to estimate the possible loss or the range of loss, if any, associated with such legal proceedings and claims.
The Company currently intends to vigorously prosecute and/or defend these proceedings as appropriate. From time to time, however, the Company may settle or otherwise resolve these matters on terms and conditions that it believes to be in its best interest. For the three and nine months ended September 30, 2021, the Company recorded a charge of $19 million for a commercial legal proceeding. For the nine months ended September 30, 2020, the Company recorded net charges of $6 million for commercial legal proceedings (charges for the three months ended September 30, 2020 were immaterial). As of September 30, 2021 and December 31, 2020, the Company recorded total liabilities for legal proceedings of $57 million and $11 million, respectively, of which $33 million and $6 million, respectively, were recorded for a securities class action covered by insurance (refer to Securities Class Actions below and Note 17. Prepaid Expenses and Other Current Assets for additional information). Insurance recoveries are recorded in the periods when it is probable they will be realized.
The ultimate resolution of any or all claims, legal proceedings or investigations could differ materially from our estimate and have a material adverse effect on the Company's results of operations and/or cash flows in any given accounting period, or on the Company's overall financial condition. 
Additionally, the Company manufactures and derives a portion of its revenue from the sale of pharmaceutical products in the opioid class of drugs and may therefore face claims arising from the regulation and/or consumption of such products.
The Company believes it has meritorious claims and defenses in these matters and intends to vigorously prosecute and defend them. However, because the ultimate outcome and costs associated with litigation are inherently uncertain and difficult to predict, except as otherwise stated, the Company is not in a position to predict the likelihood of an unfavorable outcome or provide an estimate of the amount or range of potential loss in the event of an unfavorable outcome in any of these matters, and any adverse outcome could negatively affect the Company and could have a material adverse effect on the Company's results of operations, cash flows and/or overall financial condition.
Medicaid Reimbursement and Price Reporting Matters
The Company is required to provide pricing information to state agencies, including agencies that administer federal Medicaid programs. Certain state agencies have alleged that manufacturers have reported improper pricing information, which allegedly caused them to overpay reimbursement costs.  Other agencies have alleged that manufacturers have failed to timely file required reports concerning pricing information. Liabilities are periodically established by the Company for any potential claims or settlements of overpayment. The Company intends to vigorously defend against any such claims.  The ultimate settlement of any potential liability for such claims may be higher or lower than estimated.
Patent Litigation
There is substantial litigation in the pharmaceutical, biological, and biotechnology industries with respect to the manufacture, use, and sale of new products which are the subject of conflicting patent and intellectual property claims. One or more patents
often cover the brand name products for which the Company is developing generic versions and the Company typically has patent rights covering the Company’s branded products.
Under federal law, when a drug developer files an Abbreviated New Drug Application (“ANDA”) for a generic drug seeking approval before expiration of a patent which has been listed with the FDA as covering the brand name product, the developer must certify its product will not infringe the listed patent(s) and/or the listed patent is invalid or unenforceable (commonly referred to as a “Paragraph IV” certification). Notices of such certification must be provided to the patent holder, who may file a suit for patent infringement within 45 days of the patent holder’s receipt of such notice. If the patent holder files suit within the 45-day period, the FDA can review and tentatively approve the ANDA, but generally is prevented from granting final marketing approval of the product until a final judgment in the action has been rendered in favor of the generic drug developer, or 30 months from the date the notice was received, whichever is sooner. The Company’s Generics segment is typically subject to patent infringement litigation brought by branded pharmaceutical manufacturers in connection with the Company’s Paragraph IV certifications seeking an order delaying the approval of the Company’s ANDA until expiration of the patent(s) at issue in the litigation.
The uncertainties inherent in patent litigation make the outcome of such litigation difficult to predict. For the Company’s Generics segment, the potential consequences in the event of an unfavorable outcome in such litigation include delaying launch of its generic products until patent expiration. If the Company were to launch its generic product prior to successful resolution of a patent litigation, the Company could be liable for potential damages measured by the profits lost by the branded product manufacturer rather than the profits earned by the Company if it is found to infringe a valid, enforceable patent, or enhanced treble damages in cases of willful infringement. For the Company’s Specialty segment, an unfavorable outcome may significantly accelerate generic competition ahead of expiration of the patents covering the Company’s branded products. All such litigation typically involves significant expense.
The Company is generally responsible for all of the patent litigation fees and costs associated with current and future products not covered by its alliance and collaboration agreements. The Company has agreed to share legal expenses with respect to third-party and Company products under the terms of certain of the alliance and collaboration agreements. The Company records the costs of patent litigation as expense in the period when incurred for products it has developed, as well as for products which are the subject of an alliance or collaboration agreement with a third-party.
Patent Defense Matter

Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al. (Dimethyl Fumarate)

In June 2017, Biogen International GMBH (“Biogen”) filed suit against Amneal and various other generic manufacturers in the United States District Court for the District of Delaware (“D. Del.”) alleging patent infringement based on the filing of ANDAs by Amneal and others for generic alternatives to Biogen’s Tecfidera® (dimethyl fumarate) capsules product (Biogen International GMBH, et al. v. Amneal Pharmaceuticals LLC, et al., No. 1:17-cv-00823-MN). Biogen also filed suit in June 2017 against Mylan Pharmaceuticals Inc. (“Mylan”) in the United States District Court for the Northern District of West Virginia (“N.D. W. Va.”) relating to Mylan’s own ANDA for Tecfidera®. On June 18, 2020, the N.D. W. Va. court issued an order finding the sole Biogen patent at issue invalid. Biogen has appealed the order to the United States Court of Appeals for the Federal Circuit. On September 22, 2020, the D. Del. court entered judgment in favor of defendants (including Amneal), adopting the finding of invalidity made by the N.D. W. Va. court but ordering that claims could be reinstated based on the result of the appeal of the N.D. W. Va. court’s order. Amneal, like Mylan and a number of other generic manufacturers, has now launched its generic dimethyl fumarate capsules product “at-risk,” pending the outcome of Biogen’s appeal of the N.D. W. Va. court’s order before the Federal Circuit.
Other Litigation Related to the Company’s Business

Opana ER® FTC Matters

On February 25, 2014, Impax received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (“FTC”) concerning its investigation into the drug Opana® ER and its generic equivalents. On March 30, 2016, the FTC filed a complaint against Impax, Endo Pharmaceuticals Inc. (“Endo”), and others in the United States District Court for the Eastern District of Pennsylvania, alleging that Impax and Endo violated antitrust laws when they entered into a June 2010 settlement agreement that resolved patent litigation in connection with the submission of Impax’s ANDA for generic original Opana® ER. In October 2016, the Court granted Impax’s motion to sever, formally terminating the suit against Impax. In January 2017, the FTC filed a Part 3 Administrative Complaint against Impax with similar allegations regarding the 2010 settlement. Following trial, in May 2018, the Administrative Law Judge ruled in favor of Impax and dismissed the Complaint in its entirety. FTC Complaint Counsel appealed the decision to the full Commission, and in March 2019, the FTC issued an Opinion & Order reversing the Administrative Law Judge’s decision. The Opinion & Order did not provide for any monetary damages but enjoined Impax from entering into future agreements containing certain terms. Impax filed a Petition for Review of the FTC’s Opinion & Order with the United States Court of Appeals for the Fifth Circuit, and on April 13, 2021, the Fifth Circuit issued a decision denying Impax’s Petition for Review, effectively affirming the FTC’s Opinion & Order. On September 10, 2021, Impax filed a petition for writ of certiorari in the U.S. Supreme Court; the Court has not yet decided whether it will take the case.

On July 12, 2019, the Company received a CID from the FTC concerning an August 2017 settlement agreement between Impax and Endo, which resolved a subsequent patent infringement and breach of contract dispute between the parties regarding the above-referenced June 2010 settlement agreement related to Opana® ER. The Company cooperated with the FTC regarding the CID. On January 25, 2021, the FTC filed a complaint against Endo, Impax and Amneal in the United States District Court for the District of Columbia, alleging that the 2017 settlement violated antitrust laws. In April 2021, the Company filed a motion to dismiss the FTC’s complaint, and that motion is currently pending. The Company believes it has strong defenses to the FTC’s allegations and intends to vigorously defend the action, however, no assurance can be given as to the timing or outcome of the litigation.
Opana ER® Antitrust Litigation

From June 2014 to April 2015, a number of complaints styled as class actions on behalf of direct purchasers and indirect purchasers (or end-payors) and several separate individual complaints on behalf of certain direct purchasers (the “opt-out plaintiffs”) of Opana ER® were filed against Endo and Impax.

In December 2014, the United States Judicial Panel on Multidistrict Litigation (the “JPML”) transferred the actions to the United States District Court for the Northern District of Illinois (“N.D. Ill.”) for coordinated pretrial proceedings, as In Re: Opana ER Antitrust Litigation (MDL No. 2580) (“MDL”). In each case, the complaints allege that Endo engaged in an anticompetitive scheme by, among other things, entering into an anticompetitive settlement agreement with Impax to delay generic competition of Opana ER® and in violation of state and federal antitrust laws. Plaintiffs seek, among other things, unspecified monetary damages and equitable relief, including disgorgement and restitution. On March 25, 2019, plaintiffs filed motions for class certification and served expert reports. Defendants’ oppositions to class certification and expert reports were filed and served on August 29, 2019. On April 15, 2020, defendants filed motions for summary judgment and each side moved to exclude certain opposing experts. On June 4, 2021, the MDL court granted the end-payor plaintiffs’ and direct purchaser plaintiffs’ class certification motions. Defendants appealed certification of the end-payor plaintiffs’ class, and on July 13, 2021, the Seventh Circuit granted defendants’ petition and remanded the case to the MDL to consider specific issues regarding uninjured class members. On August 11, 2021, the MDL court entered an order certifying end-payor plaintiffs’ class with an amended class definition. On June 4, 2021, the MDL also denied defendants’ summary judgment motion except as to certain state law claims and issued an opinion excluding certain experts of both sides. Trial is currently scheduled for June 2022.
Attorney General of the State of Connecticut Interrogatories and Subpoena Duces Tecum

On July 14, 2014, Impax received a subpoena and interrogations from the State of Connecticut Attorney General ("Connecticut AG") concerning its investigation into sales of Impax's generic product, digoxin. According to the Connecticut AG, the investigation concerned whether anyone engaged in a contract, combination or conspiracy in restraint of trade or commerce which had the effect of (i) fixing, controlling or maintaining prices or (ii) allocating or dividing customers or territories relating to the sale of digoxin. Impax cooperated in the investigation and produced documents and information in response to the subpoena in 2014 and 2015. However, no assurance can be given as to the timing or outcome of this investigation.
United States Department of Justice Investigations

On November 6, 2014, Impax disclosed that one of its sales representatives received a grand jury subpoena from the Antitrust Division of the United States Department of Justice (the “DOJ”). On March 13, 2015, Impax received a grand jury subpoena from the DOJ requesting the production of information and documents regarding the sales, marketing, and pricing of four generic prescription medications. Impax has cooperated in the investigation and produced documents and information in response to the subpoenas from 2014 to 2016. However, no assurance can be given as to the timing or outcome of the investigation.

On April 30, 2018, Impax received a CID from the Civil Division of the DOJ (the “Civil Division”). The CID requests the production of information and documents regarding the pricing and sale of Impax’s pharmaceuticals and interactions with other generic pharmaceutical manufacturers regarding whether generic pharmaceutical manufacturers engaged in market allocation and price-fixing agreements, paid illegal remuneration, and caused false claims to be submitted to the Federal government. Impax has cooperated with the Civil Division’s investigation. However, no assurance can be given as to the timing or outcome of the investigation.
In Re Generic Pharmaceuticals Pricing Antitrust Litigation
Since March 2016, multiple putative antitrust class action complaints have been filed on behalf of direct purchasers, indirect purchasers (or end-payors), and indirect resellers, as well as individual complaints on behalf of certain direct and indirect purchasers, and municipalities (the “opt-out plaintiffs”) against manufacturers of generic drugs, including Impax and the Company. The complaints allege a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for various generic drugs in violation of federal and state antitrust and consumer protection laws. Plaintiffs seek unspecified monetary damages and equitable relief, including disgorgement and restitution. The lawsuits have been consolidated in an MDL in the United States District Court for the Eastern District of Pennsylvania (In re Generic Pharmaceuticals Pricing Antitrust Litigation, No. 2724, (E.D. Pa.)).
On May 10, 2019, Attorneys General of 43 States and the Commonwealth of Puerto Rico filed a complaint in the United States District Court for the District of Connecticut against various manufacturers and individuals, including the Company, alleging a conspiracy to fix, maintain, stabilize, and/or raise prices, rig bids, and allocate markets or customers for multiple generic drugs. On November 1, 2019, the State Attorneys General filed an Amended Complaint on behalf of nine additional states and territories. On June 10, 2020, Attorneys General of 46 States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Territory of Guam, the U.S. Virgin Islands, and the District of Columbia filed a new complaint against various manufacturers and individuals, including the Company, alleging a conspiracy to fix prices, rig bids, and allocate markets or customers for additional generic drugs. Plaintiff States seek unspecified monetary damages and penalties and equitable relief, including disgorgement and restitution. On September 9, 2021, the State Attorneys General filed an Amended Complaint on behalf of California in addition to the original Plaintiff States. These lawsuits have been incorporated into MDL No. 2724. Fact and document discovery in MDL No. 2724 are proceeding. In May 2021, the Court issued a revised order designating certain plaintiffs’ complaints regarding two generic drug products to proceed as bellwether cases, along with the Plaintiff States’ June 10, 2020 complaint. No final scheduling order has yet been issued for this matter.
Prescription Opioid Litigation
The Company and certain of its affiliates have been named as defendants in various matters filed in state and federal courts relating to the sale of prescription opioid pain relievers. Plaintiffs in these actions include state Attorneys General, county and municipal governments, hospitals, Indian tribes, pension funds, third-party payors and individuals. Plaintiffs seek unspecified monetary damages and other forms of relief based on various causes of action, including negligence, public nuisance, unjust enrichment, and civil conspiracy, as well as alleged violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), state and federal controlled substances laws and other statutes. All cases involving the Company also name other manufacturers, distributors and retail pharmacies as defendants, and there are numerous other cases involving allegations relating to prescription opioid pain relievers against other manufacturers, distributors and retail pharmacies in which the Company and its affiliates are not named.

Nearly all cases pending in federal district courts have been consolidated for pre-trial proceedings in an MDL in the United States District Court for the Northern District of Ohio (In re: National Prescription Opiate Litigation, Case No. 17-mdl-2804). There are approximately 890 cases in the MDL in which the Company or its affiliates have been named as defendants. The Company also is named in approximately 120 state court cases pending in 11 states. The Company has filed motions to dismiss in many of these cases. No firm trial dates have been set except one case in New Mexico (September 2022) and one in Alabama (July 2022). Following a decision by the West Virginia Supreme Court of Appeals in June 2021, the trial court in West Virginia
set trial dates for April (manufacturers), July (distributors), and September (pharmacies) 2022, but the Company is not a defendant in the manufacturer trial and it is unclear if the Company will be involved in the trial of any case currently selected by the court.
Securities Class Actions

On April 17, 2017, New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund filed an amended putative class action complaint in the United States District Court for the Northern District of California against Impax and four former Impax officers alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 (Fleming v. Impax Laboratories Inc., et al., No. 4:16-cv-6557-HSG). Plaintiff alleges that Impax (1) concealed collusion with a competitor to fix the price of the generic drug digoxin; (2) concealed anticipated erosion in the price of generic drug diclofenac; and (3) overstated the value of the generic drug budesonide. In August 2019, the Court granted Impax’s motion to dismiss Plaintiff’s subsequent second amended complaint in its entirety. Plaintiff appealed to the United States Court of Appeals for the Ninth Circuit, and on January 11, 2021, the Ninth Circuit issued an unpublished opinion affirming in part and reversing in part the District Court’s decision. Impax subsequently filed a motion for rehearing with the Ninth Circuit, and Plaintiff filed a motion to intervene seeking to add Sheet Metal Workers’ Pension Fund of Southern California, Arizona and Nevada (“Sheet Metal Workers”) as an additional named Plaintiff The Ninth Circuit denied the motions, and on April 1, 2021, the case was remanded to the District Court. On April 19, 2021, the Company filed a motion to dismiss the remaining claims and an opposition to Sheet Metal Workers’ renewed motion to intervene. In June 2021, the Company reached a tentative agreement to settle all claims in the case for $33 million, subject to certain terms and conditions and subject to court approval. The proposed settlement is covered in full by insurance (refer to Note 17. Prepaid Expenses and Other Current Assets).

On December 18, 2019, Cambridge Retirement System filed a putative class action complaint in the Superior Court of New Jersey, Somerset County against the Company and certain current or former officers alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (Cambridge Retirement System v. Amneal Pharmaceuticals, Inc., et al., No. SOM-L-1701-19). Plaintiffs allege that the May 7, 2018 amended registration statement and prospectus issued in connection with the Amneal/Impax business combination was materially false and/or misleading because it failed to disclose that Amneal allegedly engaged in anticompetitive conduct to fix generic drug prices. Plaintiffs filed a motion for class certification on October 30, 2020 and in April 2021 filed a second amended complaint including similar allegations with regard to a November 2017 registration statement and prospectus issued in connection with the Amneal/ Impax business combination. The Company’s motion to dismiss and Plaintiff’s motion for class certification are currently pending.
United States Department of Justice / Drug Enforcement Administration Subpoenas

On July 7, 2017, Amneal Pharmaceuticals of New York, LLC received an administrative subpoena issued by the Long Island, NY District Office of the Drug Enforcement Administration (the “DEA”) requesting information related to compliance with certain recordkeeping and reporting requirements. On or about April 12, 2019 and May 28, 2019, the Company received grand jury subpoenas from the U.S. Attorney’s Office for the Eastern District of New York (the “USAO”) relating to similar topics concerning the Company’s suspicious order monitoring program and its compliance with the Controlled Substances Act. The Company is cooperating with the USAO in responding to the subpoenas and has entered civil and criminal tolling agreements with the USAO through approximately May 12, 2022. It is not possible to determine the exact outcome of these investigations at this time.

On March 14, 2019, Amneal received a subpoena (the “Subpoena”) from an Assistant U.S. Attorney (“AUSA”) for the Southern District of Florida. The Subpoena requests information and documents generally related to the marketing, sale, and distribution of oxymorphone. The Company intends to cooperate with the AUSA regarding the Subpoena. However, no assurance can be given as to the timing or outcome of its underlying investigation.

On October 7, 2019, Amneal received a subpoena from the New York State Department of Financial Services seeking documents and information related to sales of opioid products in the state of New York. The Company is cooperating with the request and providing responsive information. It is not possible to determine the exact outcome of this investigation at this time.

Ranitidine Litigation

The Company and its affiliates have been named as defendants, along with numerous other pharmaceutical manufacturers, wholesale distributors, and retail pharmacy chains, in In re Zantac/Ranitidine NDMA Litigation (MDL No. 2924), pending in the Southern District of Florida. Plaintiffs allege that defendants failed to disclose and/or concealed the alleged inherent
presence of N-Nitrosodimethylamine (or “NDMA”) in brand-name Zantac® or generic ranitidine and the alleged associated risk of cancer. Consolidated groups of (a) personal injury plaintiffs, (b) economic loss/medical monitoring class action plaintiffs, and (c) third-party payor plaintiffs have each filed master complaints against brand and generic pharmaceutical manufacturers, distributors, retailers, and repackagers of ranitidine-containing products. The Company or its affiliates have been named in the three master complaints and approximately 290 personal injury short form complaints. On December 31, 2020, the Court dismissed in full the three master complaints against the generic manufacturers, including the Company and its affiliates, with leave to file amended complaints on certain claims relating to manufacturing, storage and transportation. Plaintiffs filed amended complaints in February 2021, and Defendants filed various motions to dismiss the amended complaints in March 2021. On July 8, 2021, the MDL dismissed all claims against the generic drug manufacturers, including the Company and its affiliates, without leave to file further amended complaints. Plaintiffs have appealed the MDL court’s dismissal to the 11th Circuit Court of Appeals, which has consolidated the appeals of the personal injury cases.

On June 18, 2020, Amneal Pharmaceuticals LLC was named in a lawsuit filed in New Mexico brought by the New Mexico Attorney General alleging claims of public nuisance, negligence, and violations of consumer protection laws against various brand and generic manufacturers and store-brand distributors of Zantac®/Ranitidine. Plaintiff seeks unspecified compensatory and punitive damages, as well as abatement, medical monitoring, restitution and injunctive relief. The Company filed a motion to dismiss on May 17, 2021, and filed a notice of supplemental authority based on the MDL court’s July 2021 dismissal order. The Court denied the motion on August 17, 2021. On November 12, 2020, Amneal Pharmaceuticals LLC was named in a public nuisance and consumer protection lawsuit filed in state court in Baltimore, Maryland, on behalf of the Mayor and City Council of Baltimore. Defendants removed the case to federal court and on April 1, 2021, the case was remanded to state court. On August 23, 2021, the Company filed a motion to dismiss, which is currently pending.

On October 1, 2021, Amneal Pharmaceuticals, LLC, and Amneal Pharmaceuticals of New York, LLC, were named in a lawsuit filed in Pennsylvania state court along with 25 other defendants, including brand-name manufacturers, generic manufacturers, and one Pennsylvania-based pharmacy. The Complaint largely tracks the dismissed master personal injury complaint from the MDL.

Metformin Litigation

Amneal and AvKARE, Inc. were named as defendants, along with numerous other manufacturers, retail pharmacies, and wholesalers, in several putative class action lawsuits pending in the United States District Court for the District of New Jersey (“D.N.J.”), consolidated as In Re Metformin Marketing and Sales Practices Litigation (No. 2:20-cv-02324-MCA-MAH). The lawsuits all allege that defendants made and sold to putative class members generic metformin products that were “adulterated” or “contaminated” with NDMA.

An economic loss complaint filed on behalf of consumers and third-party payors who purchased or paid or made reimbursements for metformin alleges that plaintiffs suffered economic losses in connection with their purchases or reimbursements due to the purported contamination. On May 20, 2021, the Court granted Defendants’ motion to dismiss the economic loss complaint, and Plaintiffs filed an amended complaint on June 21, 2021. On August 5, 2021, Defendants moved to dismiss the amended complaint. Additionally, medical monitoring class action complaints were filed on behalf of consumers who consumed allegedly contaminated metformin allege “cellular damage, genetic harm, and/or are at an increased risk of developing cancer” and seek medical monitoring, including evaluation and treatment. These cases are currently stayed.

On March 29, 2021, a plaintiff filed a complaint in the United States District Court for the Middle District of Alabama asserting claims against manufacturers of Valsartan, Losartan, and Metformin based on the alleged presence of nitrosamines in those products. The only allegations against Amneal concern Metformin. (Davis v. Camber Pharmaceuticals, Inc., et al., C.A. No. 2:21-00254 (M.D. Ala.) (the “Davis Action”)). On May 5, 2021, the JPML transferred the Davis Action into the In re: Valsartan, Losartan, and Irbesartan Products Liability Litigation multi-district litigation for pretrial proceedings.
Xyrem® (Sodium Oxybate) Antitrust Litigation

Amneal has been named as a defendant, along with Jazz Pharmaceuticals, Inc. (“Jazz”) and numerous other manufacturers of generic versions of Jazz’s Xyrem® (sodium oxybate), in several putative class action lawsuits filed in the United States District Court for the Northern District of California and the United States District Court for the Southern District of New York, alleging that the generic manufacturers entered into anticompetitive agreements with Jazz in connection with settling patent litigation related to Xyrem®. Plaintiffs seek unspecified monetary damages and penalties as well as equitable relief, including disgorgement and restitution. On December 16, 2020, the JPML transferred the actions to the United States District Court for the Northern District of California for consolidated pretrial proceedings consolidated as In re Xyrem (Sodium Oxybate) Antitrust Litigation (No. 5:20-md-02966-LHK). Plaintiffs filed a consolidated amended class complaint in March 2021, which Defendants moved to dismiss. On August 13, 2021, the District Court granted in part and denied in part Defendants’ motion, dismissing the federal damages claims and a number of state-law claims, while permitting the remaining claims to proceed. Discovery is currently ongoing.

Value Drug Company v. Takeda Pharmaceuticals U.S.A., Inc.

On August 5, 2021, Value Drug Company filed a purported class action lawsuit in the United States District Court for the Eastern District of Pennsylvania against Takeda Pharmaceuticals U.S.A., Inc. (“Takeda”) and numerous other manufacturers of generic versions of Takeda’s Colcrys® (colchicine), including Amneal Pharmaceuticals LLC, alleging that the generic manufacturers conspired with Takeda to restrict output of generic Colcrys in order to maintain higher prices, in violation of the antitrust laws. The Company has not yet responded to the allegations.

Galeas v. Amneal Pharmaceuticals, Inc.

On July 27, 2021, Cesy Galeas filed a purported class action lawsuit in the U.S. District Court for the Eastern District of New York against Amneal Pharmaceuticals, Inc., alleging that the payment schedule for certain workers violated New York Labor Law. The Company has not yet responded to the complaint but it has notified the Court that it intends to file a motion to dismiss the claims.
v3.21.2
Segment Information
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has three reportable segments: Generics, Specialty, and AvKARE.
Generics
Generics develops, manufactures and commercializes complex oral solids, injectables, ophthalmics, liquids, topicals, softgels, inhalation products and transdermals across a broad range of therapeutic categories. Generics’ retail and institutional portfolio contains approximately 250 product families, many of which represent difficult-to-manufacture products or products that have a high barrier-to-entry, such as oncologics, anti-infectives and supportive care products for healthcare providers.
Specialty
Specialty delivers proprietary medicines to the U.S. market. The Company offers a growing portfolio in core therapeutic categories including central nervous system disorders, endocrinology, parasitic infections and other therapeutic areas. The Company's specialty products are marketed through skilled specialty sales and marketing teams, who call on neurologists, movement disorder specialists, endocrinologists and primary care physicians in key markets throughout the U.S. Specialty also has a number of product candidates that are in varying stages of development.
AvKARE
AvKARE provides pharmaceuticals, medical and surgical products and services primarily to governmental agencies, primarily focused on serving the Department of Defense and the Department of Veterans Affairs.  AvKARE is also a wholesale distributor of bottle and unit dose pharmaceuticals under the registered names of AvKARE and AvPAK, as well as medical and surgical products.  AvKARE is also a packager and wholesale distributor of pharmaceuticals and vitamins to its retail and institutional customers who are located throughout the United States focused primarily on offering 340b-qualified entities products to provide consistency in care and pricing.
The Company’s chief operating decision makers evaluate the financial performance of the Company’s segments based upon segment operating income (loss). Items below operating income (loss) are not reported by segment, since they are excluded
from the measure of segment profitability reviewed by the Company’s chief operating decision makers. Additionally, general and administrative expenses, certain selling expenses, certain litigation settlements, and non-operating income and expenses are included in “Corporate and Other.” The Company does not report balance sheet information by segment since it is not reviewed by the Company’s chief operating decision makers.
The tables below present segment information reconciled to total Company financial results, with segment operating income (loss) including gross profit less direct selling, general and administrative expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):
Three Months Ended September 30, 2021
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other
Total
Company
Net revenue$347,127 $92,745 $88,721 $— $528,593 
Cost of goods sold208,670 47,303 73,421 — 329,394 
Cost of goods sold impairment charges688 — — — 688 
Gross profit137,769 45,442 15,300 — 198,511 
Selling, general and administrative15,941 22,211 14,683 38,562 91,397 
Research and development34,999 13,928 — — 48,927 
Intellectual property legal development expenses1,584 43 — — 1,627 
Acquisition, transaction-related and integration expenses— — — 134 134 
Charges related to legal matters, net— — — 19,000 19,000 
Restructuring and other charges— — — 425 425 
Change in fair value of contingent consideration— 300 — — 300 
Property losses and associated expenses8,186 — — — 8,186 
Operating income (loss)$77,059 $8,960 $617 $(58,121)$28,515 

Nine Months Ended September 30, 2021
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other
Total
Company
Net revenue$1,020,072 $277,311 $259,390 $— $1,556,773 
Cost of goods sold598,122 144,184 211,208 — 953,514 
Cost of goods sold impairment charges688 — — — 688 
Gross profit421,262 133,127 48,182 — 602,571 
Selling, general and administrative46,500 62,748 41,986 117,046 268,280 
Research and development114,547 35,426 — — 149,973 
In-process research and development impairment charges710 — — — 710 
Intellectual property legal development expenses6,506 68 — — 6,574 
Acquisition, transaction-related and integration expenses— 16 1,422 5,781 7,219 
Charges related to legal matters, net— — — 19,000 19,000 
Restructuring and other charges80 — — 708 788 
Change in fair value of contingent consideration— 300 — — 300 
Property losses and associated expenses8,186 — — — 8,186 
Operating income (loss)$244,733 $34,569 $4,774 $(142,535)$141,541 
Three Months Ended September 30, 2020
Generics (1)
Specialty
AvKARE (1,2)
Corporate
and Other
Total
Company
Net revenue$341,920 $87,868 $89,506 $— $519,294 
Cost of goods sold229,067 47,735 76,543 — 353,345 
Cost of goods sold impairment charges32,364 — — — 32,364 
Gross profit80,489 40,133 12,963 — 133,585 
Selling, general and administrative13,153 19,181 15,374 35,412 83,120 
Research and development39,232 5,287 — — 44,519 
Intellectual property legal development expenses2,132 — — 2,134 
Acquisition, transaction-related and integration expenses— — 1,040 1,041 
Charges related to legal matters, net60 — — — 60 
Restructuring and other (credit) charges(536)— — 812 276 
Operating income (loss)$26,448 $15,662 $(2,411)$(37,264)$2,435 
Nine Months Ended September 30, 2020
Generics (1)
Specialty
AvKARE (1,2)
Corporate
and Other
Total
Company
Net revenue$1,001,065 $270,101 $211,323 $— $1,482,489 
Cost of goods sold666,841 145,782 173,966 — 986,589 
Cost of goods sold impairment charges34,579 — — — 34,579 
Gross profit299,645 124,319 37,357 — 461,321 
Selling, general and administrative42,578 56,993 41,809 100,660 242,040 
Research and development108,582 17,888 — — 126,470 
In-process research and development impairment charges960 — — — 960 
Intellectual property legal development expenses6,947 — — 6,954 
Acquisition, transaction-related and integration expenses325 83 — 4,995 5,403 
Charges related to legal matters, net5,610 250 — — 5,860 
Restructuring and other (credit) charges(158)— — 2,815 2,657 
Operating income (loss)$134,801 $49,098 $(4,452)$(108,470)$70,977 
(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.
(2)The AvKARE segment consists of the businesses acquired in the Rondo Acquisitions on January 31, 2020. Operating results for the nine months ended September 30, 2021 represent eight months of activity.
v3.21.2
Related Party Transactions
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
The Company has various business agreements with certain third-party companies in which there is some common ownership and/or management between those entities, on the one hand, and the Company, on the other hand. The Company has no direct ownership or management in any of such related party companies. The related party relationships that generated income and/ or expense in the respective reporting periods are described below.
Financing Lease - Related Party
The Company has a financing lease for two buildings located in Long Island, New York, which are used as an integrated manufacturing and office facility. The Company leased these buildings from LAX Hotel, LLC from 2012 until January 2021. LAX Hotel, LLC had been controlled by a member of the Amneal Group, who also serves as observer on the Company's Board of Directors. As a result, this lease had been historically accounted for as a related party financing lease.
During January 2021, LAX Hotel, LLC sold its interests in the leased buildings to an unrelated third party. Therefore, this lease is no longer a related party transaction, and the corresponding financing lease right-of-use asset and liability have been reclassified in the consolidated balance sheet as of September 30, 2021 to reflect this change. For the nine months ended September 30, 2021, related party lease costs and interest expense associated with this lease were $0.2 million and $0.4 million, respectively (none for the three months ended September 30, 2021). For the three and nine months ended September 30, 2020, related party lease costs and interest expense were approximately $1 million and $4 million, respectively.
For annual payments required under the terms of the non-cancelable lease agreement over the next five years and thereafter, refer to Note 12. Leases in the Company’s 2020 Annual Report on Form 10-K.
Kanan, LLC
Kanan, LLC (“Kanan”) is a real estate company which owns Amneal’s manufacturing facilities located at 65 Readington Road, Branchburg, New Jersey, 131 Chambers Brook Road, Branchburg, New Jersey and 1 New England Avenue, Piscataway, New Jersey. Certain executive officers of the Company beneficially own, through certain revocable trusts, equity securities of Kanan. In addition, they serve on the management team of Kanan. Amneal leases these facilities from Kanan under two separate triple-net lease agreements that expire in 2027 and 2031, respectively, at an annual rental cost of approximately $2 million combined, subject to CPI rent escalation adjustments as provided in the lease agreements. Rent expense paid to Kanan for both the three months ended September 30, 2021 and 2020 was $0.5 million. Rent expense paid to Kanan for both the nine months ended September 30, 2021 and 2020 was $1.6 million.
Industrial Real Estate Holdings NY, LLC and Sutaria Family Realty, LLC
Industrial Real Estate Holdings NY, LLC (“IRE”) is a real estate management entity, which was the sub-landlord of Amneal’s leased manufacturing facility located at 75 Adams Avenue, Hauppauge, New York. IRE is controlled by a member of the Amneal Group, who also serves as an observer on the Company's Board of Directors. Effective June 1, 2020, the lease was assigned to the Company with the consent of the landlord, Sutaria Family Realty, LLC, which is also a related party because a member of Company management is a beneficial owner. Concurrently with the assignment of the lease, the Company exercised a renewal option for $0.1 million to extend the lease by 5 years until March 31, 2026. Monthly rent payments are $0.1 million and increase by 3% annually. Rent paid to the related parties for the three months ended September 30, 2021 and 2020 was $0.3 million and $0.4 million, respectively. Rent paid to the related parties for both of the nine months ended September 30, 2021 and 2020 was approximately $1 million.
Kashiv BioSciences, LLC
Kashiv is an independent contract development organization focused primarily on the development of 505(b)(2) NDA products. Amneal has various business agreements with Kashiv. Certain executive officers of the Company beneficially own, directly and through certain revocable or irrevocable trusts for the benefit of their immediate families, outstanding equity securities of Kashiv. In addition, they serve as managers of Kashiv.
On January 11, 2021, the Company and Kashiv entered into a definitive agreement for Amneal to acquire a 98% interest in KSP, a subsidiary of Kashiv focused on the development of complex generics, innovative drug delivery platforms and novel 505(b)(2) drugs. The acquisition closed on April 2, 2021. Certain of the contracts between Amneal and Kashiv were acquired in this transaction and have become transactions among Amneal's consolidated subsidiaries subsequent to the transaction closing. Refer to Note 3. Acquisitions for further details on the KSP Acquisition.
Agreements with Kashiv Not Affected by the Acquisition of KSP
The parties entered into a lease for parking spaces next to the Company’s manufacturing site in Piscataway, NJ. The total amount of expense paid to Kashiv pursuant to this agreement for each of the three and nine months ended September 30, 2021 and 2020 was less than $0.1 million.
Amneal also has various consulting arrangements with Kashiv to collaborate on the development and commercialization of certain generic pharmaceutical products. The total expenses associated with these arrangements for the nine months ended September 30, 2021 was $0.5 million (none for the three months ended September 30, 2021).
The table below includes the terms and expenses recognized for each of the product specific contracts with Kashiv.
(Amounts in millions)Research and development expenses
For the three months
ended September 30
For the nine months
ended September 30
ProductsAgreement Date2021202020212020
Filgrastim and PEG-Filgrastim (1)
October 2017$— $$— $
Ganirelix Acetate and Cetrorelix Acetate (2)
August 2020$— $$$
(1) Kashiv granted Amneal an exclusive license, under its New Drug Application, to distribute and sell two bio-similar products in the U.S. Kashiv is responsible for development, regulatory filings, obtaining FDA approval, and manufacturing, and Amneal is responsible for marketing, selling and pricing activities. The term of the agreement is 10 years from the respective product’s launch date. The agreement provides for potential future milestone payments to Kashiv of (i) up to $21 million relating to regulatory approval, (ii) up to $43 million for successful delivery of commercial launch inventory, (iii) between $20 million and $50 million relating to number of competitors at launch for one product, and (iv) between $15 million and $68 million for the achievement of cumulative net sales for both products. The milestones are subject to certain performance conditions which may or may not be achieved, including FDA filing, FDA approval, launch activities and commercial sales volume objectives. In addition, the agreement provides for Amneal to pay a profit share equal to 50% of net profits, after considering manufacturing and marketing costs.
(2) Amneal and Kashiv entered into a product development agreement for the development and commercialization of two generic peptide products, Ganirelix Acetate and Cetrorelix Acetate. Under the agreement, the intellectual property and ANDA for these products are owned by Amneal, and Kashiv is to receive a profit share for all sales of the products made by Amneal. In connection with the agreement, Amneal made an upfront payment for $1 million during August 2020. The agreement also provides for potential future milestone payments to Kashiv of (i) up to $2 million relating to development milestones, and (ii) up to $0.3 million relating to regulatory filings. The milestones are subject to certain performance conditions which may or may not be achieved, including FDA filings. In addition, Amneal is to pay $3 million of development fees to Kashiv as the development work is completed.
Agreements with Kashiv Included in the Acquisition of KSP
The following contracts previously between Amneal and Kashiv were acquired with KSP and have become transactions among Amneal's consolidated subsidiaries subsequent to the transaction closing on April 2, 2021. The disclosures below relate to the historical agreements as related party transactions through April 2, 2021. Additionally, there were no related expenses for any of these agreements during the three months ended September 30, 2021.
Amneal had various development and commercialization arrangements with Kashiv to collaborate on the development and commercialization of certain generic pharmaceutical products. For the nine months ended September 30, 2021 and 2020, total reimbursable expenses associated with these arrangements was $0.3 million and $0.2 million, respectively (none for either of the three months ended September 30, 2021 and 2020). Kashiv received a percentage of net profits with respect to Amneal’s sales of these products. The total profit share paid to Kashiv for the nine months ended September 30, 2021 was $3 million. For the three and nine months ended September 30, 2020, total profit share paid to Kashiv was $3 million and $8 million, respectively.
On February 20, 2020, the Company and Kashiv entered into a master services agreement covering certain services that Kashiv provided the Company for commercial product support related to EluRyng and other products, including Ranitidine and Nitrofurantoin. For the nine months ended September 30, 2021, the Company recorded $1 million to cost of goods sold to compensate Kashiv for services performed. For the three and nine months ended September 30, 2020, the Company recorded $2 million and $5 million, respectively, to cost of goods sold to compensate Kashiv for services performed.
The following table includes the expenses recognized for each of the product specific contracts with Kashiv prior to the acquisition of these contracts as part of the KSP Acquisition.
(Amounts in millions)Research and development expenses
For the three months
ended September 30
For the nine months
ended September 30
ProductsAgreement Date2021202020212020
Levothyroxine Sodium(1)
June 2019$— $— $— $
K127 (2)
November 2019$— $— $$
Posaconazole (3)
May 2020$— $— $— $— 
(1) Pursuant to a product development agreement, Amneal and Kashiv agreed to collaborate on the development and commercialization of Levothyroxine Sodium. Under the agreement, the intellectual property and ANDA for this product is owned by Amneal, and Kashiv received a profit share for all sales of the product made by Amneal. Amneal was precluded from selling the product made by Kashiv during the term of the license and supply agreement with Jerome Stevens Pharmaceuticals (refer to Note 5. Alliance and Collaboration, in the Company's 2020 Annual Report on Form 10-K for additional details). Under the terms of the amended agreement with Kashiv, Amneal paid $2 million in July 2019 and may be required to pay up to an additional $18 million upon certain regulatory milestones being met.
(2) Amneal and Kashiv had a licensing agreement for the development and commercialization of Kashiv’s orphan drug K127 (Pyridostigmine) for the treatment of Myasthenia Gravis. Under the terms of the agreement, Kashiv was responsible for all development and clinical work required to secure Food and Drug Administration approval, and Amneal was responsible for filing the NDA and commercializing the product. The Company made an upfront payment of approximately $2 million to Kashiv in December 2019, and Kashiv was eligible to receive development and regulatory milestones totaling approximately $17 million. Kashiv was also eligible to receive tiered royalties from the low double-digits to mid-teens on net sales of K127.
(3) Amneal and Kashiv had a product development agreement for the development and commercialization of Posaconazole. In connection with the agreement, Amneal paid an upfront amount of $0.3 million in May 2020 for execution of the agreement. The agreement also provided for potential future milestone payments to Kashiv of (i) up to $0.8 million relating to development milestones, (ii) up to $0.3 million relating to regulatory approval, and (iii) up to $1 million for the achievement of cumulative net sales. The milestones were subject to certain performance conditions which may or may not be achieved, including FDA filing, FDA approval and commercial sales volume objectives.
As of September 30, 2021 and December 31, 2020, payables of approximately $0.1 million and $5 million, respectively, were due to Kashiv. Additionally, as of December 31, 2020 a receivable of $0.1 million was due from Kashiv.
As discussed in Note 3. Acquisitions, the purchase price for the KSP Acquisition included payment of cash on hand, deferred consideration, and contingent consideration. As of September 30, 2021, deferred consideration of $30 million was recorded within related party payable-short term. Additionally, as of September 30, 2021, contingent consideration liability of $6 million was recorded within related party payable-long term.
PharmaSophia, LLC
PharmaSophia, LLC (“PharmaSophia”) is a joint venture formed by Nava Pharma, LLC (“Nava”) and Oakwood Laboratories, LLC for the purpose of developing certain products. Certain executive officers of the Company beneficially own, directly and through certain revocable or irrevocable trusts for the benefit of their immediate families, outstanding equity securities of Nava. Nava beneficially owns 50% of the outstanding equity securities of PharmaSophia. In addition, these executive officers also serve as managers of Nava.
Currently PharmaSophia is actively developing one injectable product. PharmaSophia and Nava are parties to a research and development agreement pursuant to which Nava provides research and development services to PharmaSophia. Nava subcontracted this obligation to Amneal, entering into a subcontract research and development services agreement pursuant to which Amneal provides research and development services to Nava in connection with the products being developed by PharmaSophia. The total amount of income earned from these agreements for both the three months ended September 30, 2021
and 2020 was less than $0.1 million. The total amount of income earned from these agreements for the nine months ended September 30, 2021 and 2020 was $0.3 million and $0.4 million, respectively. At September 30, 2021 and December 31, 2020, receivables of $1 million and $0.8 million, respectively, were due from the related party.
Fosun International Limited
Fosun International Limited (“Fosun”) is a Chinese international conglomerate and investment company that is a shareholder of the Company. On June 6, 2019, the Company entered into a license and supply agreement with a subsidiary of Fosun, which is a Chinese pharmaceutical company. Under the terms of the agreement, the Company will hold the imported drug license required for pharmaceutical products manufactured outside of China and will supply Fosun with finished, packaged products for Fosun to then sell in the China market. Fosun will be responsible for obtaining regulatory approval in China and for shipping the product from Amneal’s facility to Fosun’s customers in China. In consideration for access to the Company's U.S. regulatory filings to support its China regulatory filings and for the supply of product, Fosun paid the Company a $1 million non-refundable fee, net of tax, in July 2019 and will be required to pay the Company $0.3 million for each of eight products upon the first commercial sale of each in China in addition to a supply price and a profit share. The Company has not recognized any revenue from this agreement.
On August 12, 2021, the Company entered into an active pharmaceutical ingredient (“API”) co-development agreement with a subsidiary of Fosun. Under the terms of the agreement, the Company provided Fosun a license to manufacture and sell two pharmaceutical products outside of the United States. Fosun will be responsible for obtaining regulatory approval outside the United States. Fosun paid the Company a $0.2 million non-refundable fee in October 2021 and will be required to pay the Company $0.1 million for each of the two products upon the first commercial sale of each in China in addition to a profit share.
Apace KY, LLC d/b/a Apace Packaging LLC
Apace KY, LLC d/b/a Apace Packaging LLC (“Apace”) provides packaging solutions pursuant to an exclusive packaging agreement. Apace markets its services which include bottling and blistering for the pharmaceutical industry. A member of Company management beneficially owns outstanding equity securities of Apace. The total amount of expenses from this arrangement for the three months ended September 30, 2021 and 2020 was $3 million and $2 million, respectively. The total amount of expenses from this arrangement for both the nine months ended September 30, 2021 and 2020 was $8 million. At September 30, 2021 and December 31, 2020, payables of approximately $0.7 million and $1 million respectively, were due to the related party for packaging services. Additionally, at December 31, 2020, receivables of $0.5 million was due from the related party for a product recall (none at September 30, 2021).
Tracy Properties LLC
R&S leases operating facilities, office and warehouse space from Tracy Properties LLC ("Tracy"). A member of Company management beneficially owns outstanding equity securities of Tracy. The total amount of expenses from this arrangement for both of the three months ended September 30, 2021 and 2020 was $0.2 million. The total amount of expenses from this arrangement for both of the nine months ended September 30, 2021 and 2020 was $0.4 million.
AzaTech Pharma LLC
R&S purchases inventory from AzaTech Pharma LLC (“AzaTech”) for resale. A member of Company management beneficially owns outstanding equity securities of AzaTech. The total amount of purchases from this arrangement for both of the three months ended September 30, 2021 and 2020 was approximately $1 million. The total amount of purchases from this arrangement for both of the nine months ended September 30, 2021 and 2020 was approximately $3 million. At September 30, 2021 and December 31, 2020, payables of approximately $0.8 million and $1 million, respectively, were due to AzaTech for inventory purchases.
AvPROP, LLC
AvKARE LLC leases its operating facilities from AvPROP, LLC (“AvPROP”). A member of Company management beneficially owns outstanding equity securities of AvPROP. Rent expense from this arrangement for both of the three months ended September 30, 2021 and 2020 was less than $0.1 million. Rent expense from this arrangement for both of the nine months ended September 30, 2021 and 2020 was $0.1 million.
Tarsadia Investments, LLC
Tarsadia Investments, LLC (“Tarsadia”) is a private investment firm that provides financial services and is a significant shareholder of the Company. A member of Amneal Group, and an observer to the Board, is the Chairman and Founder of Tarsadia Investments. Another member of the Amneal Group, and a member of the Board, is a Managing Director of Tarsadia Investments. Tarsadia offers capital and strategic support for companies with substantial growth potential primarily in the healthcare, financial services, real estate, and clean technology sectors. The Company entered into an agreement in which Tarsadia will provide financial consulting services. The services are not expected to have a material impact to the Company’s financial statements.
Avtar Investments, LLC
Avtar Investments, LLC (“Avtar”) is a private investment firm. Members of Company management beneficially own, directly and through certain revocable or irrevocable trusts for the benefit of their immediate families, outstanding equity securities of Avtar. During April 2020, the Company entered into an agreement in which Avtar will provide consulting services. The total amount of consulting expense incurred for the three and nine months ended September 30, 2021 was $0.1 million and $0.3 million, respectively. The total amount of consulting expense incurred for the three and nine months ended September 30, 2020 was $0.1 million and $0.9 million, respectively. As of both September 30, 2021 and December 31, 2020, less than $0.1 million was due to Avtar.
Zep Inc.
Zep Inc. (“Zep”) is a producer, and distributor of maintenance and cleaning solutions for retail, food & beverage, industrial & institutional, and vehicle care customers. An executive officer of the Company serves as a director of Zep. During May 2020, AvKARE entered into an agreement to supply cleaning products to Zep. The amount of revenue recorded for the three and nine months ended September 30, 2020 was $0.1 million and $0.5 million, respectively (none for the three and nine months ended September 30, 2021). As of December 31, 2020, $0.1 million was recorded in related party receivables (there was no related party receivable as of September 30, 2021).
Tax Distributions
Under the terms of its limited liability company agreement, Amneal is obligated to make tax distributions to its members, which are also holders of non-controlling interests in the Company. For further details, refer to Note 16. Stockholders' Equity and Redeemable Non-Controlling Interests.
Additionally, under the terms of the limited liability company agreement between the Company and the holders of the Rondo Class B Units, Rondo is obligated to make tax distributions to those holders, subject to certain limitations as defined in the Rondo Credit Facility. For further details, refer to Note 16. Stockholders' Equity and Redeemable Non-Controlling Interests.
Tax Indemnification – Rondo Acquisitions
In accordance with the Rondo Equity Purchase Agreement, the Company will be indemnified by the sellers of AvKARE, LLC and R&S for $0.2 million of state taxes paid on behalf of the sellers for a tax period prior to the closing of the Rondo Acquisition. As a result, the Company recorded $0.2 million of related party receivables as of September 30, 2021.
Notes Payable – Related Party
The sellers of AvKARE, LLC and R&S hold the remaining 34.9% interest in Rondo (“Rondo Class B Units”).  Certain holders of the Rondo Class B Units are also holders of the Sellers Notes and were holders of the Short-Term Sellers Note until it was repaid in its entirety in February 2021.  For additional information, refer to Note 3. Acquisitions.
v3.21.2
Stockholders’ Equity and Redeemable Non-Controlling Interests
9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Stockholders’ Equity and Redeemable Non-Controlling Interests Stockholders’ Equity and Redeemable Non-Controlling Interests
Non-Controlling Interests
The Company consolidates the financial statements of Amneal and its subsidiaries and records non-controlling interests for the portion of Amneal’s economic interests that is not held by the Company. Non-controlling interests are adjusted for capital transactions that impact the non-publicly held economic interests in Amneal.
Under the terms of Amneal's limited liability company agreement, as amended, Amneal is obligated to make tax distributions to its members based on the members' taxable income from Amneal. During the three and nine months ended September 30, 2021, the Company recorded tax distributions of approximately $9 million and $34 million as a reduction of non-controlling interests, respectively, and paid in full. For the nine months ended September 30, 2020, a tax distribution of $1 million (none for the three months ended September 30, 2020) was recorded as a reduction of non-controlling interests. As of September 30, 2021, there were no amounts due for tax distributions.
During September 2020, the Company made a $3 million payment to the non-controlling interest holders in one of Amneal's non-public subsidiaries to distribute earnings of approximately $1 million and acquire their ownership interests in the non-public subsidiary for $2 million.
As discussed in Note 3. Acquisitions, the Company acquired a 98% interest in KSP on April 2, 2021. The sellers of KSP, a related party, hold the remaining interest. The Company will attribute 2% of the net income or loss of KSP to the non-controlling interests. As of September 30, 2021, the non-controlling interest attributable to KSP was approximately $2 million.
Redeemable Non-Controlling Interests
As discussed in Note 3. Acquisitions, the Company acquired a 65.1% interest in Rondo on January 31, 2020.  The sellers of AvKARE, LLC and R&S hold the remaining 34.9% interest as Rondo Class B Units.  Beginning on January 1, 2026, the holders of the Rondo Class B Units have the right (“Put Right”) to require the Company to acquire the Rondo Class B Units for a purchase price that is based on a multiple of Rondo’s earnings before income taxes, depreciation, and amortization (EBITDA) if certain financial targets and other conditions are met.  Additionally, beginning on January 31, 2020, the Company has the right to acquire the Rondo Class B Units based on the same value and conditions as the Put Right.  The Rondo Class B Units are also redeemable by the holders upon a change in control.
Since the redemption of the Rondo Class B Units is outside of the Company's control, the units have been presented outside of stockholders' equity as redeemable non-controlling interests. Upon closing of the Rondo Acquisitions on January 31, 2020, the redeemable non-controlling interests were recorded as a component of the fair value of consideration transferred at an estimated fair value of $11 million. The fair value of the redeemable non-controlling interests was estimated using the Monte-Carlo simulation approach under the option pricing framework, which considers the redemption rights of both the Company and the holders of the Rondo Class B Units.

The Company will attribute 34.9% of the net income or loss of Rondo to the redeemable non-controlling interests. The Company will also accrete the redeemable non-controlling interests to redemption value upon an event that makes redemption probable. For the three and nine months ended September 30, 2021, the Company recorded tax distributions of $0.5 million and $2.2 million as a reduction of redeemable non-controlling interests, respectively. For the three and nine months ended September 30, 2020, the Company recorded tax distributions of $0.1 million and $0.5 million as a reduction of redeemable non-controlling interests, respectively. As of September 30, 2021, there were no amounts due for tax distributions related to redeemable non-controlling interests.
Changes in Accumulated Other Comprehensive Loss by Component (in thousands):
Foreign
currency
translation
adjustment
Unrealized
gain (loss) on cash
flow hedge, net
of tax
Accumulated
other
comprehensive
loss
Balance December 31, 2019$(7,832)$7,764 $(68)
Other comprehensive loss before reclassification(6,643)(34,560)(41,203)
Reallocation of ownership interests(22)(25)(47)
Balance December 31, 2020(14,497)(26,821)(41,318)
Other comprehensive loss before reclassification(3,626)11,934 8,308 
Reallocation of ownership interests(88)(129)(217)
Balance September 30, 2021$(18,211)$(15,016)$(33,227)
v3.21.2
Prepaid Expenses and Other Current Assets
9 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets are comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Deposits and advances$2,113 $1,696 
Prepaid insurance10,066 6,916 
Prepaid regulatory fees1,707 3,565 
Income and other tax receivables9,062 11,882 
Prepaid taxes8,270 5,542 
Other current receivables (1)
45,297 17,117 
Chargebacks receivable (2)
12,167 4,913 
Other prepaid assets21,530 21,836 
Total prepaid expenses and other current assets$110,212 $73,467 
(1)As discussed in Note 13. Commitments and Contingencies, the Company recorded receivables from insurers of $33 million and $6 million as of September 30, 2021 and December 31, 2020, respectively, associated with an insured securities class action lawsuit.
(2)When a sale occurs on a contract item, the difference between the cost paid to the manufacturer by the Company and the contract cost that the end customer has with the manufacturer is rebated back to the Company by the manufacturer. The Company establishes a chargeback (rebate) receivable and a reduction to cost of goods sold in the same period as the related sale.
v3.21.2
Property Losses and Associated Expenses
9 Months Ended
Sep. 30, 2021
Unusual or Infrequent Items, or Both [Abstract]  
Property Losses and Associated Expenses Property Losses and Associated Expenses
On September 1, 2021, Tropical Storm Ida brought extreme rainfall and flash flooding to New Jersey that caused damage to two of the Company’s facilities in Branchburg. Operations at these facilities were closed for the majority of September in order to assess the damage, make repairs and restore operations. As a result of the significant recovery effort and sufficient safety stock, the Company did not incur a material business disruption for the three and nine months ended September 30, 2021.

The Company nevertheless concluded that all inventory on-hand at the time of the flooding was damaged and unsellable and that a majority of the equipment was damaged beyond repair. In addition, the Company incurred significant costs to repair both facilities. Accordingly, the Company recorded $8 million of charges for property losses and associated expenses for both of the three and nine months ended September 30, 2021, which was comprised of the following (in thousands):

Impairment of equipment$4,202 
Impairment of inventory950 
Repairs and maintenance expenses2,025 
Salaries and benefits for cleaning and repairing facilities1,009 
Subtotal$8,186 


The Company has insurance policies for property damage, inventory losses and business interruption. Insurance recoveries are recorded in the periods when it is probable they will be realized. No insurance recoveries have been recorded for the three or nine months ended September 30, 2021 related to property losses.
v3.21.2
Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Biotechnology license agreement

On October 1, 2021, the Company entered into a license agreement with a clinical-stage biotechnology company for the development and commercialization of injectable products. The Company will pay a profit share in the low double digits on sales of these products. The agreement also contains contingent pre-approval, approval and commercial milestone payments of up to $4 million, $27 million, and $200 million, respectively, payable by the Company. The milestone payments are subject to certain performance conditions, including regulatory approvals and sales, which may not be achieved.
Puniska Healthcare Pvt. Ltd.

On November 2, 2021, the Company entered into a definitive agreement to acquire Puniska Healthcare Pvt. Ltd. (“Puniska”), a privately held manufacturer of parenteral and injectable drugs in India.
Under the terms of the transaction, Amneal will pay the sellers of Puniska $93 million. Upon execution of the agreement, the Company paid $73 million for approximately 74% of the equity interests of Puniska. The Company expects to pay an additional $4 million for land held by one of the sellers during November 2021 and $16 million for the remaining 26% of the equity interests upon approval by the government of India. The Company expects to fund the entire purchase price with cash on hand.

The Company is evaluating the accounting for the transaction. As such, the Company is not able to disclose certain information relating to the acquisition, including the preliminary fair value of assets acquired and liabilities assumed.
v3.21.2
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States of America, should be read in conjunction with Amneal’s annual audited financial statements for the year ended December 31, 2020 included in the Company’s 2020 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements have been omitted from the accompanying unaudited consolidated financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of September 30, 2021, cash flows for the nine months ended September 30, 2021 and 2020 and the results of its operations, its comprehensive income (loss) and its changes in stockholders' equity for the three and nine months ended September 30, 2021 and 2020. The consolidated balance sheet data at December 31, 2020 was derived from the Company's audited annual financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America.
Except for the updates included in this Note, the accounting policies of the Company are set forth in Note 2. Summary of Significant Accounting Policies contained in the Company’s 2020 Annual Report on Form 10-K.
Contingent consideration Contingent considerationBusiness acquisitions may include future payments that are contingent upon the occurrence of certain pharmaceutical regulatory milestones or net sales of pharmaceutical products. For acquisitions that are accounted for as a business combination, the obligations for such contingent consideration payments are recorded at fair value on the acquisition date. For contingent milestone payments, the Company uses a probability-weighted income approach utilizing an appropriate discount rate. For contingent tiered royalties on net sales, the Company uses a Monte Carlo simulation model. Contingent consideration liabilities are revalued to fair value at the end of each reporting period. Changes in the fair value of contingent consideration, other than changes due to payments, are recognized as a gain or loss and recorded within change in fair value of contingent consideration in the consolidated statements of operations. Refer to Note 3. Acquisitions and Note 10. Fair Value Measurements for additional information.
Foreign Currencies
Foreign Currencies

The Company has operations in the U.S., India, Ireland, and other international jurisdictions. Generally, foreign subsidiaries’ functional currency is the local currency of operations and the net assets of foreign operations are translated into U.S. dollars using current exchange rates. The U.S. dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the foreign currency translation adjustments in accumulated other comprehensive loss.
Use of Estimates
Use of Estimates
The preparation of financial statements requires the Company's management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The following are some, but not all, of such estimates: the determination of chargebacks, sales returns, rebates, billbacks, valuation of intangible and other assets acquired in business combinations, allowances for accounts receivable, accrued liabilities, initial and subsequent valuation of contingent consideration recognized in business combinations, stock-based compensation, valuation of inventory balances, the determination of useful lives for product rights and the assessment of expected cash flows used in evaluating goodwill and other long-lived assets for impairment. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides elective amendments for entities that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.  These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), to expand and clarify the scope of Topic 848 to include derivative instruments on discounting transactions. The amendments in this ASU are effective in the same timeframe as ASU 2020-04. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
Reclassification
Reclassification

Prior period balances related to (i) financing lease right-of-use assets of $10 million formerly included in other assets, (ii) current portion of financing lease liabilities of $2 million formerly included in accounts payable and accrued expenses, and (iii) long-term lease liabilities of $2 million formerly included in other long-term liabilities as of December 31, 2020 have been reclassified to their respective balance sheet captions to conform to the current period presentation in the consolidated balance sheets.
Performance Obligations The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is recognized when the Company transfers control of its products to the customer, which typically occurs at a point-in-time, either upon shipment or delivery. Substantially all of the Company’s net revenues relate to products which are transferred to the customer at a point-in-time.
v3.21.2
Acquisitions (Tables)
9 Months Ended
Sep. 30, 2021
Business Acquisition [Line Items]  
Schedule of Business Acquisition Pro Forma Data
The unaudited pro forma combined results of operations for the three and nine months ended September 30, 2021 and 2020 (assuming the closing of the Rondo Acquisitions occurred on January 1, 2019 and the closing of the KSP Acquisition occurred on January 1, 2020) are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net revenue$528,593 $519,349 $1,556,773 $1,513,505 
Net (loss) income$(5,964)$(24,736)$42,852 $60,923 
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.$(4,174)$(11,358)$18,115 $84,828 
Kashiv Specialty Pharmaceuticals, LLC  
Business Acquisition [Line Items]  
Schedule of Purchase Price
The preliminary purchase price was calculated as follows (in thousands):
Cash, including working capital payments$74,440 
Deferred consideration (1)
30,099 
Contingent consideration (regulatory milestones) (2)
500 
Contingent consideration (royalties) (2)
5,600 
Settlement of Amneal trade accounts payable due to KSP (3)
(7,117)
Fair value consideration transferred$103,522 

(1)The deferred consideration is stated at the preliminary fair value estimate of $30.1 million, which is the $30.5 million contractually stated amount less a $0.4 million discount. The deferred consideration consists of $30 million due on January 11, 2022 and $0.5 million due on March 10, 2022. As the deferred consideration is non-interest bearing, the Company, using guideline companies and market borrowings with comparable risk profiles, discounted the deferred consideration at 1.7% over the period from April 2, 2021 to the maturity dates, for a fair value of $30 million on the date of acquisition. This discount will be amortized to interest expense over the life of the deferred consideration utilizing the effective interest rate method.
(2)Kashiv is eligible to receive up to an additional $8 million in contingent payments upon the achievement of certain regulatory milestones and potential royalty payments from high single-digits to mid double-digits, depending on the amount of aggregate annual net sales for certain future pharmaceutical products. The estimated fair value of contingent consideration on the acquisition date was $6 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, probability of achievement of milestones, projected year of payments and expected net product sales. Refer to Note 10. Fair Value Measurements, for additional information on the methodology and determination of this liability.
(3)Represents trade accounts payable due to KSP that were effectively settled upon closing of the KSP Acquisition.
Schedule of Purchase Price Allocation
The following is a summary of the preliminary purchase price allocation for the KSP Acquisition (in thousands):
Preliminary Fair Values as of
April 2, 2021
Cash$112 
Restricted cash500 
Prepaid expenses and other current assets381 
Property, plant and equipment5,375 
Goodwill43,830 
Intangible assets56,500 
Operating lease right-of-use assets9,367 
Total assets acquired116,065 
Accounts payable and accrued expenses1,239 
Operating lease liability9,177 
Related party payable127 
Total liabilities assumed10,543 
Non-controlling interests2,000 
Fair value of consideration transferred$103,522 
Schedule of Acquired Intangible Assets
The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

Fair Value
Weighted-Average
Useful Life (in years)
Marketed product rights$29,400 5.9
AvKARE and R&S Acquisitions  
Business Acquisition [Line Items]  
Schedule of Purchase Price
The purchase price was calculated as follows (in thousands):
Cash$254,000 
Sellers Notes (1)
35,033 
Settlement of Amneal trade accounts receivable from R&S (2)
6,855 
Short-Term Seller Note (3)
1,000 
Working capital adjustment (4)
(2,640)
Fair value consideration transferred$294,248 
(1)In accordance with ASC 805, Business Combinations, all consideration transferred was measured at its acquisition-date fair value. The Sellers Notes are stated at the fair value estimate of $35 million, which is the $44 million aggregate principal amount less a $9 million discount.  The fair value of the Sellers Notes was estimated using the Monte-Carlo simulation approach under the option pricing framework.
(2)Represents trade accounts receivable from R&S that were effectively settled upon closing of the Rondo Acquisitions.
(3)Represents the principal amount due on the Short-Term Seller Note, which approximates fair value. The entire Short-Term Seller Note was repaid in February 2021.
(4)Represents a working capital adjustment pursuant to the terms of the purchase agreement. The entire amount was received in cash by the Company in September 2020.
Schedule of Purchase Price Allocation
The following is a summary of the purchase price allocation for the Rondo Acquisitions (in thousands):
Final Fair Values as of
January 31, 2020
Trade accounts receivable, net$46,702 
Inventories71,908 
Prepaid expenses and other current assets11,316 
Related party receivables61 
Property, plant and equipment5,278 
Goodwill103,679 
Intangible assets, net130,800 
Operating lease right-of-use assets - related party5,544 
Total assets acquired375,288 
Accounts payable and accrued expenses62,489 
Related party payables1,532 
Operating lease liabilities - related party5,544 
Total liabilities assumed69,565 
Redeemable non-controlling interests11,475 
Fair value of consideration transferred$294,248 
Schedule of Acquired Intangible Assets
The acquired intangible assets are being amortized over their estimated useful lives as follows (in thousands):

Fair Values
Weighted-Average
Useful Life
Government licenses$66,700 7 years
Government contracts22,000 4 years
National contracts28,600 5 years
Customer relationships13,000 10 years
Trade name500 6 years
$130,800 
v3.21.2
Revenue Recognition (Tables)
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments
The following table summarizes revenues from each of our customers which individually accounted for 10% or more of our total gross revenues:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Customer A27 %32 %30 %34 %
Customer B26 %26 %26 %26 %
Customer C27 %26 %26 %24 %
Schedule of Disaggregated Revenue The Company's significant therapeutic classes for its Generics and Specialty segments and sales channels for its AvKARE segment, as determined based on net revenue for each of the three and nine months ended September 30, 2021 and 2020 are set forth below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Generics
Anti-Infective$9,406 $9,813 $24,996 $32,589 
Hormonal107,614 93,580 325,971 271,499 
Antiviral (1)
9,762 9,236 1,560 26,015 
Central Nervous System91,263 107,139 294,182 302,949 
Cardiovascular System35,692 28,517 107,137 82,876 
Gastroenterology17,172 21,371 56,333 59,249 
Oncology21,203 13,927 73,683 45,349 
Metabolic Disease/Endocrine12,893 9,987 26,331 33,395 
Respiratory8,233 10,875 26,874 28,203 
Dermatology14,860 14,818 42,556 42,402 
Other therapeutic classes18,983 22,657 39,857 74,592 
International and other46 — 592 1,947 
Total Generics net revenue347,127 341,920 1,020,072 1,001,065 
Specialty
Hormonal/Metabolic16,422 12,934 49,230 41,033 
Central Nervous System68,869 68,061 201,710 210,428 
Other therapeutic classes7,454 6,873 26,371 18,640 
Total Specialty net revenue92,745 87,868 277,311 270,101 
AvKARE (2)
Distribution48,048 53,399 141,863 116,824 
Government Label29,898 28,902 90,142 75,353 
Institutional7,873 4,890 18,832 12,814 
Other2,902 2,315 8,553 6,332 
Total AvKARE net revenue88,721 89,506 259,390 211,323 
Total net revenue$528,593 $519,294 $1,556,773 $1,482,489 
(1) Antiviral net revenue for the nine months ended September 30, 2021 decreased from the prior year period, primarily due to a decline in Oseltamivir (generic Tamiflu®) sales from lower demand and increased returns activity above historical levels due to decreased influenza activity during the COVID-19 pandemic.
(2) The AvKARE segment consists of the businesses acquired in the Rondo Acquisitions on January 31, 2020. Net revenue for the nine months ended September 30, 2020 represents eight months of activity.
Schedule of Major Categories of Sales-Related Deductions
A rollforward of the major categories of sales-related deductions for the nine months ended September 30, 2021 is as follows (in thousands):
Contract
Charge - Backs
and Sales
Volume
Allowances
Cash Discount
Allowances
Accrued
Returns
Allowance
Accrued
Medicaid and
Commercial
Rebates
Balance at December 31, 2020$628,804 $22,690 $174,984 $131,088 
Provision related to sales recorded in the period2,315,814 79,229 72,052 94,421 
Credits/payments issued during the period(2,503,722)(79,526)(64,709)(130,990)
Balance at September 30, 2021$440,896 $22,393 $182,327 $94,519 
v3.21.2
(Loss) Earnings per Share (Tables)
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings (Loss) Per Share, Basic and Diluted
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of class A common stock (in thousands, except per share amounts):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Numerator:
Net (loss) income attributable to Amneal Pharmaceuticals, Inc.$(4,237)$(8,975)$17,001 $94,096 
Denominator:
Weighted-average shares outstanding - basic149,290 147,558 148,771 147,377 
Effect of dilutive securities:
Stock options— — 785 320 
Restricted stock units— — 2,099 925 
Weighted-average shares outstanding - diluted
149,290 147,558 151,655 148,622 
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:
Basic$(0.03)$(0.06)$0.11 $0.64 
Diluted$(0.03)$(0.06)$0.11 $0.63 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table presents potentially dilutive securities excluded from the computations of diluted (loss) earnings per share of class A common stock (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Stock options
3,102 
(4)
3,923 
(4)
347 
(1)
671 
(1)
Restricted stock units
8,171 
(4)
9,266 
(4)
— — 

Performance stock units
5,184 
(4)
3,001 
(4)
5,184 
(2)
3,001 
(2)
Shares of class B common stock152,117 
(3)
152,117 
(3)
152,117 
(3)
152,117 
(3)
(1)Excluded from the computation of diluted earnings per share of class A common stock because the exercise price of the stock options exceeded the average market price of the class A common stock during the period (out-of-the-money).
(2)Excluded from the computation of diluted earnings per share of class A common stock because the performance vesting conditions were not met for the nine months ended September 30, 2021 and 2020.
(3)Shares of class B common stock are considered potentially dilutive shares of class A common stock. Shares of class B common stock have been excluded from the computations of diluted earnings per common share because the effect of their inclusion would have been anti-dilutive under the if-converted method.   
(4)Excluded from the computation of diluted loss per share of class A common stock because the effect of their inclusion would have been anti-dilutive since there was a net loss attributable to the Company for both the three months ended September 30, 2021 and 2020.
v3.21.2
Trade Accounts Receivable, Net (Tables)
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of Trade Accounts Receivable, Net
Trade accounts receivable, net is comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Gross accounts receivable$1,092,767 $1,291,785 
Allowance for credit losses(1,524)(1,396)
Contract charge-backs and sales volume allowances(440,896)(628,804)
Cash discount allowances(22,393)(22,690)
Subtotal(464,813)(652,890)
Trade accounts receivable, net$627,954 $638,895 
Schedules of Percent of Gross Trade Receivables
The following table summarizes receivables from each of our customers representing 10% or more of the Company’s gross trade receivables:
September 30,
2021
December 31,
2020
Customer A31 %39 %
Customer B24 %20 %
Customer C28 %26 %
v3.21.2
Inventories (Tables)
9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Components of Inventories, Net of Reserves
Inventories are comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Raw materials
$214,284 $209,180 
Work in process
42,851 40,937 
Finished goods
263,110 240,532 
Total inventories$520,245 $490,649 
v3.21.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands):
Fair Value Measurement Based on
September 30, 2021TotalQuoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Liabilities
Interest rate swap (1)
$29,716 $— $29,716 $— 
Deferred compensation plan liabilities (2)
$13,686 $— $13,686 $— 
Contingent consideration liability (3)
$6,400 $— $— $6,400 
December 31, 2020
Liabilities
Interest rate swap (1)
$53,903 $— $53,903 $— 
Deferred compensation plan liabilities (2)
$14,007 $— $14,007 $— 
(1)The fair value measurement of the Company’s interest rate swap classified within Level 2 of the fair value hierarchy is a model-derived valuation as of a given date in which all significant inputs are observable in active markets including certain financial information and certain assumptions regarding past, present, and future market conditions. Refer to Note 11. Financial Instruments for information on the Company's interest rate swap.
(2)As of both September 30, 2021 and December 31, 2020, deferred compensation plan liabilities of $2 million and $12 million were recorded in current and non-current liabilities, respectively. These liabilities are recorded at the value of the amount owed to the plan participants, with changes in value recognized as compensation expense. The calculation of the deferred compensation plan obligation is derived from observable market data by reference to hypothetical investments selected by the participants.
(3)The fair value measurement of contingent consideration liability has been classified as a Level 3 recurring liability as its valuation requires judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for various inputs, the estimated fair value could be higher or lower than what the Company
determined. As of September 30, 2021, contingent consideration liability of $6 million was recorded within related party payable-long term. Refer to Note 3. Acquisitions, for additional information related to the KSP Acquisition.
Reconciliation of Contingent Consideration Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)
The following table provides a reconciliation of the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) through September 30, 2021 (in thousands):

Nine Months Ended
September 30, 2021
Balance, beginning of period$— 
Addition due to the KSP Acquisition6,100 
Change in fair value during period300 
Balance, end of period$6,400 
Significant Inputs Used in Fair Value Measurements
The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of September 30, 2021:


Contingent Consideration Liability
Fair Value as of
September 30, 2021
(in thousands)
Unobservable inputRange
Weighted Average(1)
Regulatory Milestones$500Discount rate2.8 %-4.6%3.0%
Probability of payment1.8 %-20.0%16.7%
Projected year of payment2023-20272023
Royalties$5,900Discount rate11.0 %-11.0%11.0%
Probability of payment1.8 %-20.0%18.0%
Projected year of payment2023-20322029

(1) Unobservable inputs were weighted by the relative fair value of each product candidate acquired.
v3.21.2
Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets
A summary of the fair values of derivative instruments in the consolidated balance sheets was as follows (in thousands):
September 30, 2021December 31, 2020
Derivatives Designated as Hedging InstrumentsBalance Sheet
Classification
Fair ValueBalance Sheet
Classification
Fair Value
Variable-to-fixed interest rate swapOther long-term liabilities$29,716 Other long-term liabilities$53,903 
v3.21.2
Goodwill and Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in goodwill for the nine months ended September 30, 2021 and for the year ended December 31, 2020 were as follows (in thousands):
September 30,
2021
December 31,
2020
Balance, beginning of period$522,814 $419,504 
Goodwill acquired during the period43,830 103,679 
Currency translation(238)(369)
Balance, end of period$566,406 $522,814 
Schedule of Finite-Lived Intangible Assets
Intangible assets at September 30, 2021 and December 31, 2020 were comprised of the following (in thousands):
September 30, 2021December 31, 2020
Weighted-Average
Amortization Period
(in years)
CostAccumulated
Amortization
NetCostAccumulated
Amortization
Net
Amortizing intangible assets:
Product rights8.3$1,180,005 $(434,824)$745,181 $1,153,096 $(328,587)$824,509 
Other intangible assets5.1133,800 (51,779)82,021 133,800 (33,078)100,722 
Subtotal$1,313,805 $(486,603)$827,202 $1,286,896 $(361,665)$925,231 
In-process research and development
405,525 — 405,525 379,395 — 379,395 
Total intangible assets$1,719,330 $(486,603)$1,232,727 $1,666,291 $(361,665)$1,304,626 
Finite-lived Intangible Assets Amortization Expense
Amortization expense related to intangible assets recognized is as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Amortization$43,809 $44,548 $129,001 $131,100 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The following table presents future amortization expense for the next five years and thereafter, excluding $406 million of IPR&D intangible assets (in thousands):
Future
Amortization
Remainder of 2021$43,701 
2022164,385 
2023150,681 
2024140,269 
2025100,177 
Thereafter227,989 
   Total$827,202 
v3.21.2
Segment Information (Tables)
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The tables below present segment information reconciled to total Company financial results, with segment operating income (loss) including gross profit less direct selling, general and administrative expenses, research and development expenses, and other operating expenses to the extent specifically identified by segment (in thousands):
Three Months Ended September 30, 2021
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other
Total
Company
Net revenue$347,127 $92,745 $88,721 $— $528,593 
Cost of goods sold208,670 47,303 73,421 — 329,394 
Cost of goods sold impairment charges688 — — — 688 
Gross profit137,769 45,442 15,300 — 198,511 
Selling, general and administrative15,941 22,211 14,683 38,562 91,397 
Research and development34,999 13,928 — — 48,927 
Intellectual property legal development expenses1,584 43 — — 1,627 
Acquisition, transaction-related and integration expenses— — — 134 134 
Charges related to legal matters, net— — — 19,000 19,000 
Restructuring and other charges— — — 425 425 
Change in fair value of contingent consideration— 300 — — 300 
Property losses and associated expenses8,186 — — — 8,186 
Operating income (loss)$77,059 $8,960 $617 $(58,121)$28,515 

Nine Months Ended September 30, 2021
Generics (1)
Specialty
AvKARE (1)
Corporate
and Other
Total
Company
Net revenue$1,020,072 $277,311 $259,390 $— $1,556,773 
Cost of goods sold598,122 144,184 211,208 — 953,514 
Cost of goods sold impairment charges688 — — — 688 
Gross profit421,262 133,127 48,182 — 602,571 
Selling, general and administrative46,500 62,748 41,986 117,046 268,280 
Research and development114,547 35,426 — — 149,973 
In-process research and development impairment charges710 — — — 710 
Intellectual property legal development expenses6,506 68 — — 6,574 
Acquisition, transaction-related and integration expenses— 16 1,422 5,781 7,219 
Charges related to legal matters, net— — — 19,000 19,000 
Restructuring and other charges80 — — 708 788 
Change in fair value of contingent consideration— 300 — — 300 
Property losses and associated expenses8,186 — — — 8,186 
Operating income (loss)$244,733 $34,569 $4,774 $(142,535)$141,541 
Three Months Ended September 30, 2020
Generics (1)
Specialty
AvKARE (1,2)
Corporate
and Other
Total
Company
Net revenue$341,920 $87,868 $89,506 $— $519,294 
Cost of goods sold229,067 47,735 76,543 — 353,345 
Cost of goods sold impairment charges32,364 — — — 32,364 
Gross profit80,489 40,133 12,963 — 133,585 
Selling, general and administrative13,153 19,181 15,374 35,412 83,120 
Research and development39,232 5,287 — — 44,519 
Intellectual property legal development expenses2,132 — — 2,134 
Acquisition, transaction-related and integration expenses— — 1,040 1,041 
Charges related to legal matters, net60 — — — 60 
Restructuring and other (credit) charges(536)— — 812 276 
Operating income (loss)$26,448 $15,662 $(2,411)$(37,264)$2,435 
Nine Months Ended September 30, 2020
Generics (1)
Specialty
AvKARE (1,2)
Corporate
and Other
Total
Company
Net revenue$1,001,065 $270,101 $211,323 $— $1,482,489 
Cost of goods sold666,841 145,782 173,966 — 986,589 
Cost of goods sold impairment charges34,579 — — — 34,579 
Gross profit299,645 124,319 37,357 — 461,321 
Selling, general and administrative42,578 56,993 41,809 100,660 242,040 
Research and development108,582 17,888 — — 126,470 
In-process research and development impairment charges960 — — — 960 
Intellectual property legal development expenses6,947 — — 6,954 
Acquisition, transaction-related and integration expenses325 83 — 4,995 5,403 
Charges related to legal matters, net5,610 250 — — 5,860 
Restructuring and other (credit) charges(158)— — 2,815 2,657 
Operating income (loss)$134,801 $49,098 $(4,452)$(108,470)$70,977 
(1)Operating results for the sale of Amneal products by AvKARE are included in Generics.
(2)The AvKARE segment consists of the businesses acquired in the Rondo Acquisitions on January 31, 2020. Operating results for the nine months ended September 30, 2021 represent eight months of activity.
v3.21.2
Related Party Transactions (Tables)
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The table below includes the terms and expenses recognized for each of the product specific contracts with Kashiv.
(Amounts in millions)Research and development expenses
For the three months
ended September 30
For the nine months
ended September 30
ProductsAgreement Date2021202020212020
Filgrastim and PEG-Filgrastim (1)
October 2017$— $$— $
Ganirelix Acetate and Cetrorelix Acetate (2)
August 2020$— $$$
(1) Kashiv granted Amneal an exclusive license, under its New Drug Application, to distribute and sell two bio-similar products in the U.S. Kashiv is responsible for development, regulatory filings, obtaining FDA approval, and manufacturing, and Amneal is responsible for marketing, selling and pricing activities. The term of the agreement is 10 years from the respective product’s launch date. The agreement provides for potential future milestone payments to Kashiv of (i) up to $21 million relating to regulatory approval, (ii) up to $43 million for successful delivery of commercial launch inventory, (iii) between $20 million and $50 million relating to number of competitors at launch for one product, and (iv) between $15 million and $68 million for the achievement of cumulative net sales for both products. The milestones are subject to certain performance conditions which may or may not be achieved, including FDA filing, FDA approval, launch activities and commercial sales volume objectives. In addition, the agreement provides for Amneal to pay a profit share equal to 50% of net profits, after considering manufacturing and marketing costs.
(2) Amneal and Kashiv entered into a product development agreement for the development and commercialization of two generic peptide products, Ganirelix Acetate and Cetrorelix Acetate. Under the agreement, the intellectual property and ANDA for these products are owned by Amneal, and Kashiv is to receive a profit share for all sales of the products made by Amneal. In connection with the agreement, Amneal made an upfront payment for $1 million during August 2020. The agreement also provides for potential future milestone payments to Kashiv of (i) up to $2 million relating to development milestones, and (ii) up to $0.3 million relating to regulatory filings. The milestones are subject to certain performance conditions which may or may not be achieved, including FDA filings. In addition, Amneal is to pay $3 million of development fees to Kashiv as the development work is completed.
The following table includes the expenses recognized for each of the product specific contracts with Kashiv prior to the acquisition of these contracts as part of the KSP Acquisition.
(Amounts in millions)Research and development expenses
For the three months
ended September 30
For the nine months
ended September 30
ProductsAgreement Date2021202020212020
Levothyroxine Sodium(1)
June 2019$— $— $— $
K127 (2)
November 2019$— $— $$
Posaconazole (3)
May 2020$— $— $— $— 
(1) Pursuant to a product development agreement, Amneal and Kashiv agreed to collaborate on the development and commercialization of Levothyroxine Sodium. Under the agreement, the intellectual property and ANDA for this product is owned by Amneal, and Kashiv received a profit share for all sales of the product made by Amneal. Amneal was precluded from selling the product made by Kashiv during the term of the license and supply agreement with Jerome Stevens Pharmaceuticals (refer to Note 5. Alliance and Collaboration, in the Company's 2020 Annual Report on Form 10-K for additional details). Under the terms of the amended agreement with Kashiv, Amneal paid $2 million in July 2019 and may be required to pay up to an additional $18 million upon certain regulatory milestones being met.
(2) Amneal and Kashiv had a licensing agreement for the development and commercialization of Kashiv’s orphan drug K127 (Pyridostigmine) for the treatment of Myasthenia Gravis. Under the terms of the agreement, Kashiv was responsible for all development and clinical work required to secure Food and Drug Administration approval, and Amneal was responsible for filing the NDA and commercializing the product. The Company made an upfront payment of approximately $2 million to Kashiv in December 2019, and Kashiv was eligible to receive development and regulatory milestones totaling approximately $17 million. Kashiv was also eligible to receive tiered royalties from the low double-digits to mid-teens on net sales of K127.
(3) Amneal and Kashiv had a product development agreement for the development and commercialization of Posaconazole. In connection with the agreement, Amneal paid an upfront amount of $0.3 million in May 2020 for execution of the agreement. The agreement also provided for potential future milestone payments to Kashiv of (i) up to $0.8 million relating to development milestones, (ii) up to $0.3 million relating to regulatory approval, and (iii) up to $1 million for the achievement of cumulative net sales. The milestones were subject to certain performance conditions which may or may not be achieved, including FDA filing, FDA approval and commercial sales volume objectives.
v3.21.2
Stockholders’ Equity and Redeemable Non-Controlling Interests (Tables)
9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss by Component
Changes in Accumulated Other Comprehensive Loss by Component (in thousands):
Foreign
currency
translation
adjustment
Unrealized
gain (loss) on cash
flow hedge, net
of tax
Accumulated
other
comprehensive
loss
Balance December 31, 2019$(7,832)$7,764 $(68)
Other comprehensive loss before reclassification(6,643)(34,560)(41,203)
Reallocation of ownership interests(22)(25)(47)
Balance December 31, 2020(14,497)(26,821)(41,318)
Other comprehensive loss before reclassification(3,626)11,934 8,308 
Reallocation of ownership interests(88)(129)(217)
Balance September 30, 2021$(18,211)$(15,016)$(33,227)
v3.21.2
Prepaid Expenses and Other Current Assets (Tables)
9 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets are comprised of the following (in thousands):
September 30,
2021
December 31,
2020
Deposits and advances$2,113 $1,696 
Prepaid insurance10,066 6,916 
Prepaid regulatory fees1,707 3,565 
Income and other tax receivables9,062 11,882 
Prepaid taxes8,270 5,542 
Other current receivables (1)
45,297 17,117 
Chargebacks receivable (2)
12,167 4,913 
Other prepaid assets21,530 21,836 
Total prepaid expenses and other current assets$110,212 $73,467 
(1)As discussed in Note 13. Commitments and Contingencies, the Company recorded receivables from insurers of $33 million and $6 million as of September 30, 2021 and December 31, 2020, respectively, associated with an insured securities class action lawsuit.
(2)When a sale occurs on a contract item, the difference between the cost paid to the manufacturer by the Company and the contract cost that the end customer has with the manufacturer is rebated back to the Company by the manufacturer. The Company establishes a chargeback (rebate) receivable and a reduction to cost of goods sold in the same period as the related sale.
v3.21.2
Property Losses and Associated Expenses (Tables)
9 Months Ended
Sep. 30, 2021
Unusual or Infrequent Items, or Both [Abstract]  
Schedule of Property Losses and Associated Expenses Accordingly, the Company recorded $8 million of charges for property losses and associated expenses for both of the three and nine months ended September 30, 2021, which was comprised of the following (in thousands):
Impairment of equipment$4,202 
Impairment of inventory950 
Repairs and maintenance expenses2,025 
Salaries and benefits for cleaning and repairing facilities1,009 
Subtotal$8,186 
v3.21.2
Nature of Operations - Additional Information (Details) - Amneal Group
Sep. 30, 2021
Noncontrolling Interest [Line Items]  
Ownership by parent (percent) 49.50%
Amneal Group  
Noncontrolling Interest [Line Items]  
Ownership percentage by noncontrolling owners (percent) 50.50%
v3.21.2
Summary of Significant Accounting Policies (Details)
$ in Millions
Dec. 31, 2020
USD ($)
Accounting Policies [Abstract]  
Financing lease right-of-use assets $ 10
Current portion of financing lease liabilities 2
Long-term lease liabilities $ 2
v3.21.2
Acquisitions - Additional Information (Details) - USD ($)
3 Months Ended 9 Months Ended
Apr. 02, 2021
Jan. 31, 2020
Jan. 30, 2020
Sep. 30, 2021
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 10, 2019
Business Acquisition [Line Items]                  
Intangible assets acquired       $ 57,000,000 $ 57,000,000 $ 131,000,000      
Intangible assets       1,313,805,000 1,313,805,000   $ 1,286,896,000    
Goodwill       566,406,000 566,406,000   522,814,000 $ 419,504,000  
Generics                  
Business Acquisition [Line Items]                  
Goodwill       34,000,000 34,000,000        
Specialty                  
Business Acquisition [Line Items]                  
Goodwill       364,000,000 364,000,000   361,000,000    
AvKARE                  
Business Acquisition [Line Items]                  
Goodwill       70,000,000 70,000,000   $ 70,000,000    
Term Loan                  
Business Acquisition [Line Items]                  
Debt, face amount   $ 180,000,000              
In-process research and development                  
Business Acquisition [Line Items]                  
Intangible assets acquired       27,000,000 27,000,000        
Kashiv Specialty Pharmaceuticals, LLC                  
Business Acquisition [Line Items]                  
Voting interest acquired (percent) 98.00%                
Total consideration, net of cash acquired $ 103,522,000                
Consideration paid in cash on hand 100,000,000                
Working capital costs 4,000,000                
Acquisition, transaction costs         3,000,000        
Intangible assets, net 56,500,000                
Goodwill 43,830,000                
Operating loss contributed       8,000,000 14,000,000        
Amortization       2,000,000 4,000,000        
Kashiv Specialty Pharmaceuticals, LLC | Generics                  
Business Acquisition [Line Items]                  
Goodwill 41,000,000                
Kashiv Specialty Pharmaceuticals, LLC | Specialty                  
Business Acquisition [Line Items]                  
Goodwill 3,000,000                
Kashiv Specialty Pharmaceuticals, LLC | Marketed product rights                  
Business Acquisition [Line Items]                  
Intangible assets acquired 29,400,000                
Kashiv Specialty Pharmaceuticals, LLC | In-process research and development                  
Business Acquisition [Line Items]                  
Intangible assets $ 27,100,000                
AvKARE and R&S Acquisitions                  
Business Acquisition [Line Items]                  
Voting interest acquired (percent)   65.10%             65.10%
Total consideration, net of cash acquired   $ 294,248,000              
Consideration paid in cash on hand   254,000,000              
Working capital costs   2,000,000              
Acquisition, transaction costs       0 0 $ 1,000,000      
Intangible assets, net   130,800,000              
Intangible assets acquired     $ 130,800,000            
Goodwill   103,679,000   104,000,000 104,000,000        
Liabilities incurred, fair value   11,000,000              
AvKARE and R&S Acquisitions | Cash on Hand                  
Business Acquisition [Line Items]                  
Consideration paid in cash on hand   76,000,000              
AvKARE and R&S Acquisitions | Short Term Promissory Note                  
Business Acquisition [Line Items]                  
Liabilities incurred   1,000,000              
AvKARE and R&S Acquisitions | Long Term Promissory Notes                  
Business Acquisition [Line Items]                  
Liabilities incurred   44,000,000              
Liabilities incurred, fair value   35,033,000              
AvKARE and R&S Acquisitions | Debt                  
Business Acquisition [Line Items]                  
Consideration paid in cash on hand   $ 178,000,000              
AvKARE | AvKARE                  
Business Acquisition [Line Items]                  
Goodwill       $ 70,000,000 $ 70,000,000        
v3.21.2
Acquisitions - Payments to Acquire Business (Details) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2021
Apr. 02, 2021
Jan. 31, 2020
Jun. 30, 2021
Mar. 10, 2022
Jan. 11, 2022
Dec. 31, 2020
Business Acquisition [Line Items]              
Deferred consideration, gross fair value $ 30,000            
Kashiv Specialty Pharmaceuticals, LLC              
Business Acquisition [Line Items]              
Cash, including working capital payments   $ 74,440          
Deferred consideration, gross fair value   30,099          
Contingent consideration (milestones)   500          
Contingent consideration (royalties)   5,600          
Settlement of Amneal trade accounts payable due to KSP   (7,117)          
Cash   100,000          
Fair value consideration transferred   103,522          
Deferred consideration   30,500          
Deferred consideration discount   400          
Deferred consideration, discount rate (percent)       1.70%      
Contingent consideration, maximum liability   8,000          
Contingent consideration $ 6,400 $ 6,000         $ 0
Kashiv Specialty Pharmaceuticals, LLC | Forecast              
Business Acquisition [Line Items]              
Deferred consideration         $ 500 $ 30,000  
AvKARE and R&S Acquisitions              
Business Acquisition [Line Items]              
Cash     $ 254,000        
Sellers Notes     11,000        
Settlement of Amneal trade accounts receivable from R&S     6,855        
Working capital adjustment     (2,640)        
Fair value consideration transferred     294,248        
AvKARE and R&S Acquisitions | Short Term Promissory Note              
Business Acquisition [Line Items]              
Short-Term Seller Note     1,000        
AvKARE and R&S Acquisitions | Long Term Promissory Notes              
Business Acquisition [Line Items]              
Sellers Notes     35,033        
Short-Term Seller Note     44,000        
Sellers notes discount     $ 9,000        
v3.21.2
Acquisitions - Preliminary Purchase Price Allocation for the Acquisitions (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Apr. 02, 2021
Dec. 31, 2020
Jan. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]          
Goodwill $ 566,406   $ 522,814   $ 419,504
Kashiv Specialty Pharmaceuticals, LLC          
Business Acquisition [Line Items]          
Cash   $ 112      
Restricted cash   500      
Prepaid expenses and other current assets   381      
Property, plant and equipment   5,375      
Goodwill   43,830      
Intangible assets, net   56,500      
Operating lease right-of-use assets - related party   9,367      
Total assets acquired   116,065      
Accounts payable and accrued expenses   1,239      
Operating lease liabilities - related party   9,177      
Related party payables   127      
Total liabilities assumed   10,543      
Redeemable non-controlling interests   2,000      
Fair value of consideration transferred   $ 103,522      
AvKARE and R&S Acquisitions          
Business Acquisition [Line Items]          
Prepaid expenses and other current assets       $ 11,316  
Property, plant and equipment       5,278  
Goodwill $ 104,000     103,679  
Intangible assets, net       130,800  
Operating lease right-of-use assets - related party       5,544  
Trade accounts receivable, net       46,702  
Inventories       71,908  
Related party receivables       61  
Total assets acquired       375,288  
Accounts payable and accrued expenses       62,489  
Operating lease liabilities - related party       5,544  
Related party payables       1,532  
Total liabilities assumed       69,565  
Redeemable non-controlling interests       11,475  
Fair value of consideration transferred       $ 294,248  
v3.21.2
Acquisitions - Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Apr. 02, 2021
Jan. 30, 2020
Sep. 30, 2021
Sep. 30, 2021
Sep. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values     $ 57,000 $ 57,000 $ 131,000
AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 130,800      
Marketed product rights | Kashiv Specialty Pharmaceuticals, LLC          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values $ 29,400        
Weighted-Average Useful Life 5 years 10 months 24 days        
Government licenses | AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 66,700      
Weighted-Average Useful Life   7 years      
Government contracts | AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 22,000      
Weighted-Average Useful Life   4 years      
National contracts | AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 28,600      
Weighted-Average Useful Life   5 years      
Customer relationships | AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 13,000      
Weighted-Average Useful Life   10 years      
Trade name | AvKARE and R&S Acquisitions          
Acquired Finite-Lived Intangible Assets [Line Items]          
Fair Values   $ 500      
Weighted-Average Useful Life   6 years      
v3.21.2
Acquisitions - Pro Forma (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]        
Net revenue $ 528,593 $ 519,349 $ 1,556,773 $ 1,513,505
Net (loss) income (5,964) (24,736) 42,852 60,923
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. $ (4,174) $ (11,358) $ 18,115 $ 84,828
v3.21.2
Revenue Recognition - Additional Information (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Customer A        
Concentration Risk [Line Items]        
Concentration risk (percent) 27.00% 32.00% 30.00% 34.00%
Customer B        
Concentration Risk [Line Items]        
Concentration risk (percent) 26.00% 26.00% 26.00% 26.00%
Customer C        
Concentration Risk [Line Items]        
Concentration risk (percent) 27.00% 26.00% 26.00% 24.00%
v3.21.2
Revenue Recognition - Schedule of Disaggregated Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]        
Net revenue $ 528,593 $ 519,294 $ 1,556,773 $ 1,482,489
Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 347,127 341,920 1,020,072 1,001,065
Specialty        
Disaggregation of Revenue [Line Items]        
Net revenue 92,745 87,868 277,311 270,101
AvKARE        
Disaggregation of Revenue [Line Items]        
Net revenue 88,721 89,506 259,390 211,323
International and other | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 46 0 592 1,947
Anti-Infective | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 9,406 9,813 24,996 32,589
Hormonal | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 107,614 93,580 325,971 271,499
Hormonal | US | Specialty        
Disaggregation of Revenue [Line Items]        
Net revenue 16,422 12,934 49,230 41,033
Antiviral | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 9,762 9,236 1,560 26,015
Central Nervous System | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 91,263 107,139 294,182 302,949
Central Nervous System | US | Specialty        
Disaggregation of Revenue [Line Items]        
Net revenue 68,869 68,061 201,710 210,428
Cardiovascular System | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 35,692 28,517 107,137 82,876
Gastroenterology | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 17,172 21,371 56,333 59,249
Oncology | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 21,203 13,927 73,683 45,349
Metabolic Disease/Endocrine | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 12,893 9,987 26,331 33,395
Respiratory | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 8,233 10,875 26,874 28,203
Dermatology | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 14,860 14,818 42,556 42,402
Other therapeutic classes | US | Generics        
Disaggregation of Revenue [Line Items]        
Net revenue 18,983 22,657 39,857 74,592
Other therapeutic classes | US | Specialty        
Disaggregation of Revenue [Line Items]        
Net revenue 7,454 6,873 26,371 18,640
Distribution | US | AvKARE        
Disaggregation of Revenue [Line Items]        
Net revenue 48,048 53,399 141,863 116,824
Government Label | US | AvKARE        
Disaggregation of Revenue [Line Items]        
Net revenue 29,898 28,902 90,142 75,353
Institutional | US | AvKARE        
Disaggregation of Revenue [Line Items]        
Net revenue 7,873 4,890 18,832 12,814
Other | US | AvKARE        
Disaggregation of Revenue [Line Items]        
Net revenue $ 2,902 $ 2,315 $ 8,553 $ 6,332
v3.21.2
Revenue Recognition - Schedule of Major Categories of Sales-Related Deductions (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2021
USD ($)
Contract Charge - Backs and Sales Volume Allowances  
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]  
Balance, beginning of period $ 628,804
Provision related to sales recorded in the period 2,315,814
Credits/payments issued during the period (2,503,722)
Balance, end of period 440,896
Cash Discount Allowances  
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]  
Balance, beginning of period 22,690
Provision related to sales recorded in the period 79,229
Credits/payments issued during the period (79,526)
Balance, end of period 22,393
Accrued Returns Allowance  
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]  
Balance, beginning of period 174,984
Provision related to sales recorded in the period 72,052
Credits/payments issued during the period (64,709)
Balance, end of period 182,327
Accrued Medicaid and Commercial Rebates  
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]  
Balance, beginning of period 131,088
Provision related to sales recorded in the period 94,421
Credits/payments issued during the period (130,990)
Balance, end of period $ 94,519
v3.21.2
Alliance and Collaboration - Additional Information (Details) - USD ($)
3 Months Ended 9 Months Ended 57 Months Ended
May 07, 2018
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Expensed to costs of goods sold   $ 329,394,000 $ 353,345,000 $ 953,514,000 $ 986,589,000  
Research and development   48,927,000 44,519,000 149,973,000 126,470,000  
Astra Zeneca            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Collaborative arrangement reduced royalty           $ 30,000,000
Expensed to costs of goods sold   3,000,000 3,000,000 9,000,000 12,000,000  
Biosimilar Licensing and Supply Agreement            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Collaborative arrangement maximum contingent payments amount $ 78,000,000          
Research and development   $ 0 $ 0 $ 10,000,000 $ 5,000,000  
v3.21.2
(Loss) Earnings per Share - Computation of Basic and Diluted Earnings (Loss) per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Numerator:        
Net (loss) income attributable to Amneal Pharmaceuticals, Inc. $ (4,237) $ (8,975) $ 17,001 $ 94,096
Denominator:        
Weighted-average shares outstanding - basic (in shares) 149,290 147,558 148,771 147,377
Effect of dilutive securities:        
Weighted-average shares outstanding - diluted (in shares) 149,290 147,558 151,655 148,622
Net (loss) earnings per share attributable to Amneal Pharmaceuticals, Inc.'s class A common stockholders:        
Basic (in usd per share) $ (0.03) $ (0.06) $ 0.11 $ 0.64
Diluted (in usd per share) $ (0.03) $ (0.06) $ 0.11 $ 0.63
Stock options        
Effect of dilutive securities:        
Effect of dilutive securities (in shares) 0 0 785 320
Restricted stock units        
Effect of dilutive securities:        
Effect of dilutive securities (in shares) 0 0 2,099 925
v3.21.2
(Loss) Earnings per Share - Securities Excluded from Diluted Earnings per Share Computation (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Class B Common Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially dilutive securities excluded from earnings per share (in shares) 152,117 152,117 152,117 152,117
Stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially dilutive securities excluded from earnings per share (in shares) 3,102 3,923 347 671
Restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially dilutive securities excluded from earnings per share (in shares) 8,171 9,266 0 0
Performance stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Potentially dilutive securities excluded from earnings per share (in shares) 5,184 3,001 5,184 3,001
v3.21.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
May 04, 2018
May 07, 2021
Feb. 28, 2021
Jul. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2018
Income Tax Disclosure [Abstract]                    
Income tax expense (benefit)         $ 4,049 $ 144 $ 7,056 $ (105,843)    
Effective tax rate (percent)         (198.20%) (0.70%) 14.80% 349.30%    
Deferred tax assets, discrete income tax benefit             $ (110,000) $ (110,000)    
Valuation allowance                 $ 423,000  
Net operating loss carryforwards                   $ 345,000
Income tax receivable, amount refunded     $ 2,000 $ 106,000            
Income tax receivable, net operating loss carryback related to the CARES act       110,000            
Income tax receivable, interest       $ 4,000            
Percentage of tax receivable agreement paid to other holders of Amneal common units (percent) 85.00% 85.00%                
Liabilities under tax receivable agreement         $ 206,000   $ 206,000   $ 206,000  
v3.21.2
Trade Accounts Receivable, Net - Schedule of Trade Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Receivables [Abstract]    
Gross accounts receivable $ 1,092,767 $ 1,291,785
Allowance for credit losses (1,524) (1,396)
Contract charge-backs and sales volume allowances (440,896) (628,804)
Cash discount allowances (22,393) (22,690)
Subtotal (464,813) (652,890)
Trade accounts receivable, net $ 627,954 $ 638,895
v3.21.2
Trade Accounts Receivable, Net - Additional Information (Details) - Customer Concentration Risk - Accounts Receivable
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Customer A    
Concentration Risk [Line Items]    
Concentration risk (percent) 31.00% 39.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk (percent) 24.00% 20.00%
Customer C    
Concentration Risk [Line Items]    
Concentration risk (percent) 28.00% 26.00%
v3.21.2
Inventories - Components of Inventories, Net of Reserves (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials $ 214,284 $ 209,180
Work in process 42,851 40,937
Finished goods 263,110 240,532
Total inventories $ 520,245 $ 490,649
v3.21.2
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Liabilities    
Interest rate swap $ 29,716 $ 53,903
Deferred compensation plan liabilities 13,686 14,007
Contingent consideration liability 6,400  
Current Liabilities    
Liabilities    
Deferred compensation plan liabilities 2,000 2,000
Non-current Liabilities    
Liabilities    
Deferred compensation plan liabilities 12,000 12,000
Quoted Prices in Active Markets (Level 1)    
Liabilities    
Interest rate swap 0 0
Deferred compensation plan liabilities 0 0
Contingent consideration liability 0  
Significant Other Observable Inputs (Level 2)    
Liabilities    
Interest rate swap 29,716 53,903
Deferred compensation plan liabilities 13,686 14,007
Contingent consideration liability 0  
Significant Unobservable Inputs (Level 3)    
Liabilities    
Interest rate swap 0 0
Deferred compensation plan liabilities 0 $ 0
Contingent consideration liability $ 6,400  
v3.21.2
Fair Value Measurements - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Sep. 30, 2021
Apr. 02, 2021
Dec. 31, 2020
Term Loan | Rondo      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt fair value $ 141   $ 172
Prepayment of outstanding principal 25    
Term Loan | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long-term debt fair value 2,600   2,600
Sellers Notes | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Long term debt $ 38   $ 36
Kashiv Specialty Pharmaceuticals, LLC      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Contingent consideration, maximum liability   $ 8  
v3.21.2
Fair Value Measurements - Reconciliation of Contingent Consideration Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Details) - Kashiv Specialty Pharmaceuticals, LLC - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Jun. 30, 2021
Sep. 30, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period   $ 0
Addition due to the KSP Acquisition   6,100
Change in fair value during period $ 300 300
Balance, end of period   $ 6,400
v3.21.2
Fair Value Measurements - Significant Inputs Used in Fair Value Measurements (Details)
$ in Thousands
Sep. 30, 2021
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Fair value $ 6,400
Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Fair value 500
Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Fair value $ 5,900
Minimum | Discount rate | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.028
Minimum | Discount rate | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.110
Minimum | Probability of payment | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.018
Minimum | Probability of payment | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.018
Maximum | Discount rate | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.046
Maximum | Discount rate | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.110
Maximum | Probability of payment | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.200
Maximum | Probability of payment | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.200
Weighted Average | Discount rate | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.030
Weighted Average | Discount rate | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.110
Weighted Average | Probability of payment | Regulatory Milestones  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.167
Weighted Average | Probability of payment | Royalties  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Measurement input 0.180
v3.21.2
Financial Instruments - Additional Information (Details) - USD ($)
Sep. 30, 2021
Oct. 31, 2019
Derivative [Line Items]    
Loss, net of income taxes, recognized in accumulated other comprehensive loss $ 30,000,000  
Accumulated Other Comprehensive (Loss) Income    
Derivative [Line Items]    
Loss, net of income taxes, recognized in accumulated other comprehensive loss 15,000,000  
Non-Controlling Interests    
Derivative [Line Items]    
Loss, net of income taxes, recognized in accumulated other comprehensive loss $ 15,000,000  
Interest Rate Lock Agreement    
Derivative [Line Items]    
Notional amount   $ 1,300,000,000
v3.21.2
Financial Instruments - Summary of Fair Values of Derivative Instruments in Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Fair Value $ 29,716 $ 53,903
Variable to Fixed Interest Rate Swap | Designated as Hedging Instrument | Other long-term liabilities    
Derivative [Line Items]    
Fair Value $ 29,716 $ 53,903
v3.21.2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Balance, beginning of period $ 522,814 $ 419,504
Goodwill acquired during the period 43,830 103,679
Currency translation (238) (369)
Balance, end of period $ 566,406 $ 522,814
v3.21.2
Goodwill and Intangible Assets - Additional Information (Detail)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
product
Sep. 30, 2020
USD ($)
product
Sep. 30, 2021
USD ($)
product
Sep. 30, 2020
USD ($)
product
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Goodwill [Line Items]            
Goodwill $ 566,406   $ 566,406   $ 522,814 $ 419,504
Intangible assets acquired $ 57,000   57,000 $ 131,000    
Impairment charges     $ 1,400 $ 36,000    
Intangible assets impairment, number of products experiencing price erosion | product 2   2      
Intangible assets impairment, number of products contract terminated | product   1        
Intangible assets impairment, number of products supply agreement terminated early | product       1    
Intangible assets impairment, number of in process products experiencing estimated launch date delays | product     1      
Cost of goods sold            
Goodwill [Line Items]            
Impairment charges $ 700 $ 32,000 $ 700 $ 35,000    
Product rights            
Goodwill [Line Items]            
Intangible assets acquired 29,000   29,000      
In-process research and development            
Goodwill [Line Items]            
Intangible assets acquired 27,000   27,000      
Impairment charges     700 $ 1,000    
Intangible assets impairment, number of products experiencing impairment | product       2    
Intangible assets impairment, number of in process products experiencing estimated launch date delays | product       1    
Marketed products            
Goodwill [Line Items]            
Intangible assets impairment, number of products experiencing impairment | product       6    
Intangible assets impairment, number of products experiencing price erosion | product       4    
Intangible assets impairment, number of products contract terminated | product       1    
Specialty            
Goodwill [Line Items]            
Goodwill 364,000   364,000   361,000  
Generics            
Goodwill [Line Items]            
Goodwill 133,000   133,000   92,000  
AvKARE            
Goodwill [Line Items]            
Goodwill $ 70,000   $ 70,000   $ 70,000  
v3.21.2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Cost $ 1,313,805 $ 1,286,896
Accumulated Amortization (486,603) (361,665)
Net 827,202 925,231
In-process research and development 405,525 379,395
Intangible assets, cost 1,719,330 1,666,291
Intangible assets, net 1,232,727 1,304,626
In-process research and development    
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization $ 0 0
Product rights    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in years) 8 years 3 months 18 days  
Cost $ 1,180,005 1,153,096
Accumulated Amortization (434,824) (328,587)
Net $ 745,181 824,509
Other intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in years) 5 years 1 month 6 days  
Cost $ 133,800 133,800
Accumulated Amortization (51,779) (33,078)
Net $ 82,021 $ 100,722
v3.21.2
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization $ 43,809 $ 44,548 $ 129,001 $ 131,100
v3.21.2
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]    
In-process research and development $ 405,525 $ 379,395
Remainder of 2021 43,701  
2022 164,385  
2023 150,681  
2024 140,269  
2025 100,177  
Thereafter 227,989  
Net $ 827,202 $ 925,231
v3.21.2
Commitments and Contingencies - Additional Information (Details)
$ in Millions
1 Months Ended 3 Months Ended 9 Months Ended
Dec. 31, 2020
USD ($)
claim
Mar. 13, 2015
medication
Nov. 06, 2014
representative
Oct. 31, 2021
defendant
pharmacy
May 31, 2021
product
Sep. 30, 2021
USD ($)
case
state
Sep. 30, 2021
USD ($)
case
complaint
state
claim
Sep. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
Jun. 10, 2020
state
May 10, 2019
state
Apr. 17, 2017
officer
Loss Contingencies [Line Items]                        
Securities class action amount covered by insurance $ 6         $ 33 $ 33          
Number of pending claims, including third parties | case           890 890          
Number of cases | case           120 120          
Number of states with cases | state           11 11          
United States Department of Justice Investigations                        
Loss Contingencies [Line Items]                        
Number of sales representatives | representative     1                  
Number of generic prescription medications | medication   4                    
Generic Digoxin and Doxycycline Antitrust Litigation                        
Loss Contingencies [Line Items]                        
Number of generic prescription medications | product         2              
Number of states, filed civil lawsuit | state                   46 43  
Securities Class Actions                        
Loss Contingencies [Line Items]                        
Securities class action amount covered by insurance                 $ 33      
Number of former officers alleging violations | officer                       4
Ranitidine                        
Loss Contingencies [Line Items]                        
Number of claims dismissed | claim 3           3          
Number of personal injury short form complaints | complaint             290          
Ranitidine Pennsylvania Lawsuit | Subsequent Event                        
Loss Contingencies [Line Items]                        
Number of co-defendants | defendant       25                
Number of pharmacies | pharmacy       1                
Commercial and Governmental Legal Proceedings and Claims                        
Loss Contingencies [Line Items]                        
Net charge for legal proceedings           $ 19 $ 19 $ 6        
Liability related to legal proceedings $ 11         $ 57 $ 57          
v3.21.2
Segment Information - Additional Information (Details)
9 Months Ended
Sep. 30, 2021
product
segment
Segment Reporting [Abstract]  
Number of reportable segments | segment 3
Number of product families | product 250
v3.21.2
Segment Information - Schedules of Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Segment Reporting Information [Line Items]        
Net revenue $ 528,593 $ 519,294 $ 1,556,773 $ 1,482,489
Cost of goods sold 329,394 353,345 953,514 986,589
Cost of goods sold impairment charges 688 32,364 688 34,579
Gross profit 198,511 133,585 602,571 461,321
Selling, general and administrative 91,397 83,120 268,280 242,040
Research and development 48,927 44,519 149,973 126,470
In-process research and development impairment charges 0 0 710 960
Intellectual property legal development expenses 1,627 2,134 6,574 6,954
Acquisition, transaction-related and integration expenses 134 1,041 7,219 5,403
Charges related to legal matters, net 19,000 60 19,000 5,860
Restructuring and other charges 425 276 788 2,657
Change in fair value of contingent consideration 300 0 300 0
Property losses and associated expenses 8,186 0 8,186 0
Operating income 28,515 2,435 141,541 70,977
Generics        
Segment Reporting Information [Line Items]        
Net revenue 347,127 341,920 1,020,072 1,001,065
AvKARE        
Segment Reporting Information [Line Items]        
Net revenue 88,721 89,506 259,390 211,323
Operating Segments | Generics        
Segment Reporting Information [Line Items]        
Net revenue 347,127 341,920 1,020,072 1,001,065
Cost of goods sold 208,670 229,067 598,122 666,841
Cost of goods sold impairment charges 688 32,364 688 34,579
Gross profit 137,769 80,489 421,262 299,645
Selling, general and administrative 15,941 13,153 46,500 42,578
Research and development 34,999 39,232 114,547 108,582
In-process research and development impairment charges     710 960
Intellectual property legal development expenses 1,584 2,132 6,506 6,947
Acquisition, transaction-related and integration expenses 0 0 0 325
Charges related to legal matters, net 0 60 0 5,610
Restructuring and other charges 0 (536) 80 (158)
Change in fair value of contingent consideration 0   0  
Property losses and associated expenses 8,186   8,186  
Operating income 77,059 26,448 244,733 134,801
Operating Segments | Specialty        
Segment Reporting Information [Line Items]        
Net revenue 92,745 87,868 277,311 270,101
Cost of goods sold 47,303 47,735 144,184 145,782
Cost of goods sold impairment charges 0 0 0 0
Gross profit 45,442 40,133 133,127 124,319
Selling, general and administrative 22,211 19,181 62,748 56,993
Research and development 13,928 5,287 35,426 17,888
In-process research and development impairment charges     0 0
Intellectual property legal development expenses 43 2 68 7
Acquisition, transaction-related and integration expenses 0 1 16 83
Charges related to legal matters, net 0 0 0 250
Restructuring and other charges 0 0 0 0
Change in fair value of contingent consideration 300   300  
Property losses and associated expenses 0   0  
Operating income 8,960 15,662 34,569 49,098
Operating Segments | AvKARE        
Segment Reporting Information [Line Items]        
Net revenue 88,721 89,506 259,390 211,323
Cost of goods sold 73,421 76,543 211,208 173,966
Cost of goods sold impairment charges 0 0 0 0
Gross profit 15,300 12,963 48,182 37,357
Selling, general and administrative 14,683 15,374 41,986 41,809
Research and development 0 0 0 0
In-process research and development impairment charges     0 0
Intellectual property legal development expenses 0 0 0 0
Acquisition, transaction-related and integration expenses 0 0 1,422 0
Charges related to legal matters, net 0 0 0 0
Restructuring and other charges 0 0 0 0
Change in fair value of contingent consideration 0   0  
Property losses and associated expenses 0   0  
Operating income 617 (2,411) 4,774 (4,452)
Corporate and Other        
Segment Reporting Information [Line Items]        
Net revenue 0 0 0 0
Cost of goods sold 0 0 0 0
Cost of goods sold impairment charges 0 0 0 0
Gross profit 0 0 0 0
Selling, general and administrative 38,562 35,412 117,046 100,660
Research and development 0 0 0 0
In-process research and development impairment charges     0 0
Intellectual property legal development expenses 0 0 0 0
Acquisition, transaction-related and integration expenses 134 1,040 5,781 4,995
Charges related to legal matters, net 19,000 0 19,000 0
Restructuring and other charges 425 812 708 2,815
Change in fair value of contingent consideration 0   0  
Property losses and associated expenses 0   0  
Operating income $ (58,121) $ (37,264) $ (142,535) $ (108,470)
v3.21.2
Related Party Transactions - Additional Information (Details)
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
Apr. 02, 2021
USD ($)
Jun. 01, 2020
USD ($)
Oct. 31, 2021
USD ($)
Jul. 31, 2019
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
lease_agreement
building
Sep. 30, 2020
USD ($)
Aug. 12, 2021
USD ($)
product
Dec. 31, 2020
USD ($)
Jun. 06, 2019
USD ($)
product
Related Party Transaction [Line Items]                        
Interest expense                 $ 4,000,000      
Related party payable - short term $ 32,474,000         $ 32,474,000   $ 32,474,000     $ 7,561,000  
Related party receivables 1,307,000         1,307,000   1,307,000     1,407,000  
Deferred consideration, gross fair value 30,000,000                      
Contingent consideration 6,400,000         6,400,000   $ 6,400,000        
Kashiv Specialty Pharmaceuticals, LLC                        
Related Party Transaction [Line Items]                        
Voting interest acquired (percent)   98.00%                    
Deferred consideration, gross fair value   $ 30,099,000                    
Related Party                        
Related Party Transaction [Line Items]                        
Number of buildings, financing lease | building               2        
Lease costs           0 $ 1,000,000 $ 200,000 1,000,000      
Interest expense           0   $ 400,000 4,000,000      
Related Party | Kanan, LLC                        
Related Party Transaction [Line Items]                        
Number of lease agreements | lease_agreement               2        
Related Party | Kanan, LLC | Annual Rental Cost                        
Related Party Transaction [Line Items]                        
Amounts of transaction with related party               $ 2,000,000        
Related Party | Kanan, LLC | Rent Expense                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           500,000 500,000 1,600,000 1,600,000      
Related Party | Industrial Real Estate Holdings NY, LLC                        
Related Party Transaction [Line Items]                        
Lease renewal term     5 years                  
Related Party | Industrial Real Estate Holdings NY, LLC | Rent Expense                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party     $ 100,000     300,000 400,000 1,000,000 1,000,000      
Annual rent increase (percent)     3.00%                  
Related Party | Industrial Real Estate Holdings NY, LLC | Rent Renewal Fee                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party     $ 100,000                  
Related Party | Kashiv BioSciences LLC                        
Related Party Transaction [Line Items]                        
Amounts of transaction with related party           0            
Related party payable - short term 100,000         100,000   100,000     5,000,000  
Related party receivables                     100,000  
Related Party | Kashiv BioSciences LLC | Kashiv Bio Sciences Generic Pharmaceutical Products Development and Commercialization                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           0   500,000        
Related Party | Kashiv BioSciences LLC | Maximum                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           100,000 100,000 100,000 100,000      
Related Party | Kashiv BioSciences LLC | Development And Commercialization Reimbursable Expense                        
Related Party Transaction [Line Items]                        
Amounts of transaction with related party           0 0 300,000 200,000      
Related Party | Kashiv BioSciences LLC | Cost Of Goods Sold and R&D Reimbursement                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party             2,000,000 1,000,000 5,000,000      
Related Party | Kashiv Pharmaceuticals LLC | Profit Share On Various Arrangements                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party             3,000,000 3,000,000 8,000,000      
Related Party | PharmaSophia, LLC                        
Related Party Transaction [Line Items]                        
Related party receivables $ 1,000,000         1,000,000   1,000,000     800,000  
Income from related parties           $ 100,000 100,000 $ 300,000 400,000      
Ownership interest (percent) 50.00%         50.00%   50.00%        
Related Party | Fosun International Limited | Non-Refundable Fee, Net of Tax                        
Related Party Transaction [Line Items]                        
Payment received, non-refundable fee         $ 1,000,000              
Related Party | Fosun International Limited | Fee Due Upon First Commercial Sale Of Products                        
Related Party Transaction [Line Items]                        
Additional amount due from related parties upon sale of each product                       $ 300,000
Additional amount due from related parties upon sale of each product, number of products | product                       8
Related Party | Subsidiary of Fosun International Limited                        
Related Party Transaction [Line Items]                        
Number of products in agreement | product                   2    
Related Party | Subsidiary of Fosun International Limited | Non-Refundable Fee, Net of Tax | Subsequent Event                        
Related Party Transaction [Line Items]                        
Payment received, non-refundable fee       $ 200,000                
Related Party | Subsidiary of Fosun International Limited | Fee Due Upon First Commercial Sale Of Products                        
Related Party Transaction [Line Items]                        
Number of products in agreement | product                   2    
Additional amount due from related parties upon sale of each product                   $ 100,000    
Related Party | Avtar Investments, LLC                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           $ 100,000 100,000 $ 300,000 900,000      
Related parties payable (less than) $ 100,000         100,000   100,000     100,000  
Related Party | Zep Inc.                        
Related Party Transaction [Line Items]                        
Income from related parties           0 100,000 0 500,000      
Related party receivables 0         0   0     100,000  
Apace KY, LLC                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           3,000,000 2,000,000 8,000,000 8,000,000      
Related party payable - short term 700,000         700,000   700,000     700,000  
Related party receivables 0         0   0     500,000  
Tracy Properties LLC                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           200,000 200,000 400,000 400,000      
AzaTech Pharma LLC                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           1,000,000 1,000,000 3,000,000 3,000,000      
Related party payable - short term 800,000         800,000   800,000     $ 1,000,000  
AvPROP, LLC                        
Related Party Transaction [Line Items]                        
Expenses from transactions with related party           100,000 $ 100,000 100,000 $ 100,000      
AvKARE, LLC | Rondo                        
Related Party Transaction [Line Items]                        
Related party receivables $ 200,000         $ 200,000   $ 200,000        
Ownership interest (percent) 34.90%         34.90%   34.90%        
v3.21.2
Related Party Transactions - Product Specific Terms and Expenses with Kashiv (Details)
$ in Millions
1 Months Ended 3 Months Ended 9 Months Ended
Aug. 31, 2020
USD ($)
product
Oct. 31, 2017
USD ($)
product
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Filgrastim and PEG-Filgrastim            
Related Party Transaction [Line Items]            
Collaborative arrangement term   10 years        
Kashiv BioSciences LLC | Related Party            
Related Party Transaction [Line Items]            
Amounts of transaction with related party     $ 0.0      
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim            
Related Party Transaction [Line Items]            
Amounts of transaction with related party     0.0 $ 1.0 $ 0.0 $ 1.0
Number of products in agreement | product   2        
Collaborative arrangement, profit share (percent)   50.00%        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Regulatory Approval            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   $ 21.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Successful Delivery of Commercial Launch Inventory            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   43.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Number of Competitors for Launch of one Product | Minimum            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   20.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Number of Competitors for Launch of one Product | Maximum            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   50.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Achievement of Cumulative Net Sales | Minimum            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   15.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Filgrastim and PEG-Filgrastim | Achievement of Cumulative Net Sales | Maximum            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount   $ 68.0        
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Ganirelix Acetate and Cetrorelix acetate            
Related Party Transaction [Line Items]            
Amounts of transaction with related party     $ 0.0 $ 1.0 $ 1.0 $ 1.0
Number of products in agreement | product 2          
Collaborative arrangement, upfront payment $ 1.0          
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Ganirelix Acetate and Cetrorelix acetate | Regulatory Approval            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount 0.3          
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Ganirelix Acetate and Cetrorelix acetate | Development Milestones            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount 2.0          
Kashiv BioSciences LLC | R&D Reimbursement | Related Party | Ganirelix Acetate and Cetrorelix acetate | Development Fees            
Related Party Transaction [Line Items]            
Collaborative arrangement maximum contingent payments amount $ 3.0          
v3.21.2
Related Party Transactions - Product Specific Contracts with Kashiv Prior to the Acquisition (Details) - Kashiv BioSciences LLC - Related Party - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 9 Months Ended
May 31, 2020
Dec. 31, 2019
Jul. 31, 2019
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Related Party Transaction [Line Items]              
Amounts of transaction with related party       $ 0.0      
R&D Reimbursement | Levothyroxine Sodium              
Related Party Transaction [Line Items]              
Expenses from transactions with related party       0.0 $ 0.0 $ 0.0 $ 2.0
Amounts of transaction with related party     $ 2.0        
Additional amount due to related party, if circumstances met (up to)     $ 18.0        
R&D Reimbursement | K127              
Related Party Transaction [Line Items]              
Expenses from transactions with related party       0.0 0.0 3.0 2.0
Collaborative arrangement, upfront payment   $ 2.0          
R&D Reimbursement | K127 | Regulatory Approval              
Related Party Transaction [Line Items]              
Collaborative arrangement maximum contingent payments amount   $ 17.0          
R&D Reimbursement | Posaconazole              
Related Party Transaction [Line Items]              
Expenses from transactions with related party       $ 0.0 $ 0.0 $ 0.0 $ 0.0
Collaborative arrangement, upfront payment $ 0.3            
R&D Reimbursement | Posaconazole | Regulatory Approval              
Related Party Transaction [Line Items]              
Collaborative arrangement maximum contingent payments amount 0.3            
R&D Reimbursement | Posaconazole | Development Milestones              
Related Party Transaction [Line Items]              
Collaborative arrangement maximum contingent payments amount 0.8            
R&D Reimbursement | Posaconazole | Achievement of Cumulative Net Sales              
Related Party Transaction [Line Items]              
Collaborative arrangement maximum contingent payments amount $ 1.0            
v3.21.2
Stockholders' Equity and Redeemable Non-Controlling Interests - Additional Information (Details)
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
subsidiary
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Apr. 02, 2021
USD ($)
Dec. 10, 2019
Class of Stock [Line Items]                
Tax distribution     $ 9,000,000 $ 0 $ 34,000,000 $ 1,000,000    
Tax distributions due     0   0      
Acquired non-controlling interest, non-public subsidiary, including distribute earnings   $ 3,000,000            
Acquired non-controlling interest, number of non-public subsidiaries | subsidiary   1            
Acquired non-controlling interest, non-public subsidiary, distribute earnings   $ 1,000,000            
Acquired non-controlling interest, non-public subsidiary   $ 2,000,000            
Tax distribution recorded as a reduction to redeemable non-controlling interest     500,000 $ 100,000 2,200,000 $ 500,000    
Amounts due to tax distributions related to redeemable non-controlling interests     $ 0   $ 0      
Kashiv Specialty Pharmaceuticals, LLC                
Class of Stock [Line Items]                
Voting interest acquired (percent)             98.00%  
Kashiv Specialty Pharmaceuticals, LLC | Sellers of KSP                
Class of Stock [Line Items]                
Ownership percentage by noncontrolling owners (percent)             2.00%  
Non-controlling interest             $ 2,000,000  
AvKARE and R&S Acquisitions                
Class of Stock [Line Items]                
Voting interest acquired (percent) 65.10%             65.10%
Liabilities incurred, fair value $ 11,000,000              
AvKARE and R&S Acquisitions | Rondo                
Class of Stock [Line Items]                
Ownership percentage by noncontrolling owners (percent) 34.90%   34.90%   34.90%      
v3.21.2
Stockholders' Equity and Redeemable Non-Controlling Interests - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity beginning balance $ 344,932 $ 346,788
Other comprehensive loss before reclassification 8,308 (41,203)
Reallocation of ownership interests (217) (47)
Stockholders' equity ending balance 383,166 344,932
Foreign currency translation adjustment    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity beginning balance (14,497) (7,832)
Other comprehensive loss before reclassification (3,626) (6,643)
Reallocation of ownership interests (88) (22)
Stockholders' equity ending balance (18,211) (14,497)
Unrealized gain (loss) on cash flow hedge, net of tax    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity beginning balance (26,821) 7,764
Other comprehensive loss before reclassification 11,934 (34,560)
Reallocation of ownership interests (129) (25)
Stockholders' equity ending balance (15,016) (26,821)
Accumulated Other Comprehensive (Loss) Income    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Stockholders' equity beginning balance (41,318) (68)
Stockholders' equity ending balance $ (33,227) $ (41,318)
v3.21.2
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Deposits and advances $ 2,113 $ 1,696
Prepaid insurance 10,066 6,916
Prepaid regulatory fees 1,707 3,565
Income and other tax receivables 9,062 11,882
Prepaid taxes 8,270 5,542
Other current receivables 45,297 17,117
Chargebacks receivable 12,167 4,913
Other prepaid assets 21,530 21,836
Total prepaid expenses and other current assets 110,212 73,467
Securities class action amount covered by insurance $ 33,000 $ 6,000
v3.21.2
Property Losses and Associated Expenses - Narrative (Details)
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2021
facility
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Unusual or Infrequent Item, or Both [Line Items]          
Number of facilities damaged | facility 2        
Property losses and associated expenses   $ 8,186,000 $ 0 $ 8,186,000 $ 0
Insurance recoveries   $ 0   0  
Impairment of equipment          
Unusual or Infrequent Item, or Both [Line Items]          
Property losses and associated expenses       4,202,000  
Impairment of inventory          
Unusual or Infrequent Item, or Both [Line Items]          
Property losses and associated expenses       950,000  
Repairs and maintenance expenses          
Unusual or Infrequent Item, or Both [Line Items]          
Property losses and associated expenses       2,025,000  
Salaries and benefits for cleaning and repairing facilities          
Unusual or Infrequent Item, or Both [Line Items]          
Property losses and associated expenses       $ 1,009,000  
v3.21.2
Property Losses and Associated Expenses - Charges (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Unusual or Infrequent Item, or Both [Line Items]        
Property losses and associated expenses $ 8,186 $ 0 $ 8,186 $ 0
Impairment of equipment        
Unusual or Infrequent Item, or Both [Line Items]        
Property losses and associated expenses     4,202  
Impairment of inventory        
Unusual or Infrequent Item, or Both [Line Items]        
Property losses and associated expenses     950  
Repairs and maintenance expenses        
Unusual or Infrequent Item, or Both [Line Items]        
Property losses and associated expenses     2,025  
Salaries and benefits for cleaning and repairing facilities        
Unusual or Infrequent Item, or Both [Line Items]        
Property losses and associated expenses     $ 1,009  
v3.21.2
Subsequent Events - Additional Information (Details) - USD ($)
1 Months Ended
Nov. 02, 2021
Oct. 01, 2021
Nov. 30, 2021
Puniska Healthcare Pvt Ltd | Forecast      
Subsequent Event [Line Items]      
Consideration paid in cash on hand $ 16,000,000    
Payments to acquire land     $ 4,000,000
Voting interest acquired (percent) 26.00%    
Subsequent Event | Puniska Healthcare Pvt Ltd      
Subsequent Event [Line Items]      
Consideration to be transferred in multiple steps $ 93,000,000    
Consideration paid in cash on hand $ 73,000,000    
Voting interest acquired (percent) 74.00%    
Clinical-stage Biotechnology Company | Licensing Agreement | Subsequent Event | Contingent Pre-approval      
Subsequent Event [Line Items]      
Collaborative arrangement maximum contingent payments amount   $ 4,000,000  
Clinical-stage Biotechnology Company | Licensing Agreement | Subsequent Event | Regulatory Approval      
Subsequent Event [Line Items]      
Collaborative arrangement maximum contingent payments amount   27,000,000  
Clinical-stage Biotechnology Company | Licensing Agreement | Subsequent Event | Commercial Milestones      
Subsequent Event [Line Items]      
Collaborative arrangement maximum contingent payments amount   $ 200,000,000