Amneal Pharmaceuticals NASDAQ: AMRX outlined plans to acquire Kashiv BioSciences and reported preliminary first-quarter results during an investor call, with executives describing the deal as a strategic move to build a vertically integrated biosimilars platform and extend the company’s growth profile into the next decade.
Acquisition framed as a step toward a “fully integrated” biosimilars platform
President and Co-CEO Chirag Patel said the Kashiv acquisition represents “a defining moment for Amneal,” and is intended to create “a fully integrated global biosimilars leader.” Patel said the combination is designed to provide direct access to what management characterized as more than $300 billion of worldwide biologic loss of exclusivity over the next decade, pairing Kashiv’s R&D and manufacturing capabilities with Amneal’s commercial scale.
According to Patel, the transaction builds on a partnership between the companies that has lasted more than a decade, which he said reduces execution risk. He also said the deal adds biosimilars as a key growth pillar for Amneal’s “affordable medicines” strategy and diversifies the business with a view toward extending growth “well into 2030s.”
Kashiv’s platform: investment, staffing, manufacturing footprint
Co-CEO Chintu Patel said Kashiv is a biologics platform built over 12 years with “more than $900 million invested,” more than 600 employees, and four R&D and manufacturing sites spanning the U.S. and India. He said the platform supports parallel development across modalities including monoclonal antibodies, fusion proteins, bispecifics, and cytokines.
Chintu Patel said Kashiv’s drug substance capacity is expected to scale from 26,000 liters in 2026 to 75,000 liters by 2028. In the Q&A, he added that reaching that level is expected to require approximately $30 million to $50 million per year of capital spending over the next two to three years. Chirag Patel said key molecules are expected to have two manufacturing sites (U.S. and India), with U.S. manufacturing a priority for the company.
Deal terms: $750 million upfront, milestones, and expected deleveraging path
CFO Tasos Konidaris said Amneal structured the acquisition with $750 million of upfront consideration split 50/50 between cash and equity. He said the equity component represents “approximately $29 million of Amneal shares” and about 8% dilution. The agreement also includes potential milestones of up to $350 million tied to regulatory approvals, and potential royalties over 12 years contingent on achieving certain gross profit levels. Amneal will fund Kashiv’s operations between signing and closing, Konidaris said.
Konidaris said the transaction will be funded with cash on hand and additional debt. He expects net leverage to be about 3.7x adjusted EBITDA at the end of 2026, compared with 3.5x at the end of 2025, and said the company expects to resume deleveraging in 2027 with a target of below 3x by 2028. Management said it expects the deal to close “in a few months,” subject to Amneal shareholder approval and customary conditions and regulatory approvals.
Biosimilars portfolio and launch cadence
Chintu Patel said the combined company would have a biosimilars pipeline of more than 20 programs and management expects “multiple launches each year going forward.” He said the combined portfolio targets “over $100 billion in U.S. opportunity” and more globally.
- By 2027: Management expects to have six commercial biosimilars, including biosimilars for Avastin and Denosumab, and a Xolair biosimilar that is pending approval.
- By 2030: Chintu Patel said the company expects “six or more additional approvals” from the advanced pipeline.
- Near-term catalysts: He said lanreotide is expected to be approved in the third quarter, followed by anticipated approval for Xolair at year-end.
During the Q&A, Chirag Patel discussed portfolio construction, saying the company expects its biosimilars portfolio over the next decade to be “probably 70%” niche products and “about 30%” large-molecule products, citing examples such as Keytruda, Opdivo, and Dupixent. He also described expectations that a significant portion of biosimilar commercialization will be driven through private-label PBMs and specialty pharmacies.
Preliminary Q1 results, margin commentary, and synergy expectations
Konidaris reported preliminary first-quarter net revenue of $723 million, up 4%, and said adjusted EBITDA was $202 million, up 19%, with adjusted EPS of $0.27, up 29%. He said the company’s net leverage ratio declined to 3.5x adjusted EBITDA in March 2026 from 3.9x a year earlier.
By segment, Konidaris said affordable medicines revenue was $423 million, up 2%, driven by women’s health and ADHD products and increased Amneal supply. He said specialty revenue was $133 million, up 23%, including Crexont revenue of $21 million and Brekiya revenue of $4.6 million, up from $1.6 million in the prior quarter. AvKARE revenue was $166 million, down 4%, which he attributed to an expected decline in low-margin distribution offset by growth in the government channel; he said AvKARE gross margin increased by 690 basis points year over year.
On profitability, Konidaris said full-year gross margin was 42.9% in 2025 and he expects 2026 gross margin to be “about 45%,” with additional room to expand over time. He cautioned that the company’s first-quarter gross margin strength—up 510 basis points versus the prior year—would be difficult to replicate every quarter, implying more modest margins later in 2026.
For the Kashiv transaction, Konidaris said Amneal expects $400 million to $500 million in cumulative financial synergies over time. He said key components include capturing “full economics from partnered assets” by eliminating certain milestones and profit-sharing obligations, as well as tax benefits and incentives from local Indian authorities.
Looking longer term, Konidaris said that by 2030 the company expects revenues of approximately $4.3 billion to $4.5 billion, and he estimated biosimilars would contribute “probably about $1 billion, a little over $1 billion, $1-1.3 billion.” He also said that by 2030, management expects revenue to be up about $1.2 billion, or 40%, over 2026, and EPS to be up about $0.70, or 70%, over 2026.
About Amneal Pharmaceuticals NASDAQ: AMRX
Amneal Pharmaceuticals, Inc is a publicly traded integrated healthcare company specializing in the development, manufacturing and distribution of generic and specialty pharmaceutical products. The company’s portfolio includes oral solids, injectables, transdermals and biosimilars, serving a broad range of therapeutic areas such as cardiovascular, neuroscience, oncology and women’s health. Alongside its generic offerings, Amneal has built a branded portfolio through strategic acquisitions and internal development, positioning itself across both high-volume generics and higher-value specialty treatments.
Since its founding in 2002 by brothers Chirag and Chintu Modgil, Amneal has pursued growth through organic investment in research and development as well as targeted M&A.
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