Amneal Pharmaceuticals : Fourth Quarter 2019 Earnings Presentation

Q4 and FY2019

Earnings Call

Amneal 2.0

Strategic

Priorities and

Financial

Results

February 26, 2020

Safe Harbor Statement

Certain statements contained herein, regarding matters that are not historical facts, may be forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward- looking statements include statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future, including, among other things, future operating results and financial performance, product development and launches, integration strategies and resulting cost reduction, market position and business strategy. Words such as "may," "will," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "assume," "continue," and similar words are intended to identify estimates and forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. These forward-looking statements are based on current expectations of future events. If the underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Amneal Pharmaceuticals, Inc. (the "Company"). Such risks and uncertainties include, but are not limited to: the risk that our goodwill may become impaired, which could adversely affect our financial condition and results of operations, our ability to integrate the operations of Amneal Pharmaceuticals LLC and Impax Laboratories, LLC pursuant to the business combination completed on May 4, 2018, and our ability to realize the anticipated synergies and other benefits of the combination with Impax; the impact of global economic conditions; our ability to successfully develop, license, acquire and commercialize new products on a timely basis; our ability to obtain exclusive marketing rights for our products; the competition we face in the pharmaceutical industry from brand and generic drug product companies, and the impact of that competition on our ability to set prices; our ability to manage our growth through acquisitions and otherwise; our dependence on the sales of a limited number of products for a substantial portion of our total revenues; the risk of product liability and other claims against us by consumers and other third parties; risks related to changes in the regulatory environment, including United States federal and state laws related to healthcare fraud abuse and health information privacy and security and changes in such laws; changes to FDA product approval requirements; risks related to federal regulation of arrangements between manufacturers of branded and generic products; the impact of healthcare reform and changes in coverage and reimbursement levels by governmental authorities and other third-party payers; the continuing trend of consolidation of certain customer groups; our reliance on certain licenses to proprietary technologies from time to time; our dependence on third-party suppliers and distributors for raw materials for our products and certain finished goods; our dependence on third-party agreements for a portion of our product offerings; our ability to identify and make acquisitions of or investments in complementary businesses and products on advantageous terms; legal, regulatory and legislative efforts by our brand competitors to deter competition from our generic alternatives; the significant amount of resources we expend on research and development; our substantial amount of indebtedness and our ability to generate sufficient cash to service our indebtedness in the future, and the impact of interest rate fluctuations on such indebtedness; and the high concentration of ownership of our Class A Common Stock and the fact that we are controlled by the Amneal Group. A further list and descriptions of these risks, uncertainties and other factors can be found in the Company's most recently filed Annual Report on Form 10-K, as supplemented by any subsequently filed Quarterly Reports on Form 10-Q. Copies of these filings are available online at www.sec.gov, www.amneal.com or on request from the Company.

Forward-looking statements included herein speak only as of the date hereof and we undertake no obligation to revise or update such statements to reflect the occurrence of events or circumstances after the date hereof.

2

Non-GAAP Financial Measures

This presentation includes certain Non-GAAP financial measures, including adjusted EBITDA, adjusted net income, adjusted net income per diluted share, adjusted gross profit, adjusted gross margin, and adjusted

operating income, which are intended as supplemental measures of the Company's performance that are not required by or presented in accordance with GAAP. In addition, this presentation includes these Non-GAAP

measures and our reported results on a Non-GAAP combined basis to include the historical results of Impax and Gemini, not adjusted for financing or acquisition accounting impacts of the combination, as if the transaction closing dates had occurred on the first day of all periods presented herein. Management uses these Non-GAAP historical and combined measures internally to evaluate and manage the Company's operations and to better understand its business because they facilitate a comparative assessment of the Company's operating performance relative to its performance based on results calculated under GAAP. These Non-GAAP measures also isolate the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company's operations and underlying operational performance. The compensation committee of the Company's board of directors also uses certain of these measures to evaluate management's performance and set its compensation. The Company believes that these Non-GAAP measures also provide useful information to investors regarding certain financial and business trends relating to the Company's financial condition and operating results, and doing so on a combined basis facilitates an evaluation of the financial performance of the Company and its operations on a consistent basis. Providing this information therefore allows investors to make independent assessments of the Company's financial performance, results of operation and trends while viewing the information through the eyes of management.

All combined business results presented in this presentation are not prepared in accordance with Article 11 of Regulation S-X. Adjusted gross profit is calculated as total revenues less adjusted cost of goods sold. Adjusted gross margin is calculated as adjusted gross profit divided by total revenues. The calculation of Non-GAAP adjusted diluted earnings per share assumes the conversion of all outstanding shares of Class B Common Stock to shares of Class A Common Stock.

These Non-GAAP measures are subject to limitations. The Non-GAAP measures presented in this presentation may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the Non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, the combined results may not represent what our combined results of operations and financial position would have been had the transactions occurred on the dates indicated, nor are they intended to project our combined results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these Non-GAAP measures in conjunction with the Company's GAAP results; no Non-GAAP measure should be considered in isolation from or as alternatives to net income, diluted earnings per share or any other measure determined in accordance with GAAP. Readers should review the reconciliations included in this Appendix to the presentation, and should not rely on any single financial measure to evaluate the Company's business.

Net debt and gross debt are non-GAAP measures. Management uses net debt and gross debt as several of the means by which it assesses financial leverage, and they are therefore useful to investors in evaluating the Company's business and financial position using the same tools as management. Net debt and gross debt are also useful to investors because they are often used by securities analysts and other interested parties in evaluating the Company. Net debt and gross debt do however have limitations and should not be considered as alternatives to or in isolation from current portion of long-term debt, net, long-term-debt, net or any other measure calculated in accordance with GAAP. Additionally, other companies, including those in the Company's industry, may not use net debt or gross debt in the same way or may calculate it differently than as presented herein.

This presentation also includes certain non-GAAP guidance. The Company cannot, however, provide a reconciliation between non-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for 2020.

A reconciliation of each historical Non-GAAP measure to the most directly comparable GAAP measure is set forth in the appendix to this presentation.

3

Agenda

1

2

3

4

Strategic Priorities

Chirag and Chintu Patel, Co-CEOs

Q4 and FY19 Financial Results & Guidance

Todd Branning, SVP & CFO

Closing Remarks

Chirag Patel, Co-CEO

Q&A

Strategic Priorities

Chirag and Chintu Patel

Co-CEOs

5

Amneal Today

Building On Significant Momentum Leading Into 2020

Great progress addressing inefficiencies across the business

Continuing to execute with urgency to manage costs and strengthen supply chain

Diversified distribution channels

Completion of AvKARE transaction in Q1 2020 to unlock growth potential in federal healthcare market

Diverse and growing generics portfolio

Adding to strong existing base business with new product wins and first- to-market launches

Significant opportunities for growth in specialty franchise

Well-positioned with competitive advantages to drive growth and value creation

Amneal 2.0

Rebuilding Amneal As A Differentiated

Pharmaceutical Leader

Revitalize and focus R&D

Complete strategic shift toward more high-ROI complex generics with high barriers to entry and specialty branded products

Prioritize focus on specialty segment

Target significantly increasing specialty revenue share by 2025

Key player in biosimilar market

Leverage existing infrastructure to further development of biosimilars

Expand global footprint

Grow geographic diversification beginning with partnership with Fosun and access to Chinese market

Delivering operational excellence

Targeting 40% gross margins in Generics segment

Positioning the business for long-term growth and profitability - regardless of the competitive landscape

6

Extracting Additional Value from Generics Business

Optimizing value of diverse and growing portfolio of 225+generics products

Strategic shift of focus to products with higher barriers to entry

• Expect to file20-25products in 2020
• 97products in pipeline awaiting FDA approval
• • 56% Solid dose
• 80products in development pipeline
• • 64%non-solid dosage forms

Strength in complex generics and dosage forms positions us for long-term success regardless of generics landscape

• 15new product launches since August
• 2key first-to-market launches

Key to winning over competition is operational excellence

• Takingaggressive action to address inefficiencies
• Expanding margins with ultimate goal of40%+
• Won awards for30base business products with 30additional opportunities

7

Ensure Continued Generic Pipeline Execution

	What We've Done:	What's Next:
Generics1	Notable Complex Generic Launches	Continued Pipeline Execution

Injectables

Transdermal

Topical/Ring

Oral Solids

Liquid/Nasal

Ophthalmic

8

(1) Generic versions of innovator products.

Generics Pipeline Focused on Complex & Differentiated Dosage

ANDAs Submitted (Pending + TA): 97 Projects			Development Pipeline: 80 projects
Nasal Spray			Transdermal		1%
1%
Inhalation	1%		Otic		1%
Transdermal	4%		Nasal Spray		4%
Topical	7%		Inhalation		4%
Oral Liquid	7%		Oral Liquid		5%
	Topical		10%
Ophthalmic	7%		Ophthalmic		11%
ER OSD	15%		ER OSD		11%
Injection	17%		IR OSD / Soft Gel		25%
OSD		41%	Injection		28%

56% Solid dose

44% other dosage forms

36% Solid dose

64% other dosage forms

9

Growth and Value Creation in Specialty Franchise

Building on solid, scalable foundation to maximize exposure in key category

Strengthening operational execution of well-established infrastructure and footprint in Neurology and Endocrinology/Primary Care

Opportunistic evaluation of M&A andin-licensingopportunitiesto leverage strong existing capabilities

Continuing success of high-quality assets

Ongoing development of IPX-203 program with commercialization expected to begin no later than 2023

Licensing agreement with Kashiv BioSciences expands CNS pipeline into neuromuscular disorders

Delivering results with topline prescription growth in key brands

Full year prescription growth of 8% for Rytaryand nearly 20% for Unithroid

Longer-term opportunity in biosimilars, where we have been investing for years

3 biosimilarscurrently in pipeline and actively adding additional products

Driving to ultimate goal of significantly increasing revenue share from specialty segment

10

Maximize Well-established Specialty Footprint & Infrastructure

Building a Leading Position	Offering Proven Options for	Partnering to Bring Important
in Movement Disorders	Migraine Patients	Neuromuscular Treatments for Patients

NeurologyIPX203

Development

Program

(Parkinson's Disease

Symptoms)

K127

Orphan Drug under development as innovative, once-daily, extended- release formulation (pyridostigmine) for treating Myasthenia Gravis

Endocrinology				Biosimilars
& Primary
Care

(1)

(1)

(2)

Biosimilar versions of innovator products.

Evaluating Add-on Opportunities that Leverage Our Existing Development & Commercialization Capabilities

11

1. In-licensedfrom Kashiv Biosciences, LLC (f.k.a. Adello Biologics, LLC).
2. In-licensedfrom mAbxience, a subsidiary of Spanish healthcare firm Insud Pharma.

Financial Review

Todd Branning

SVP & CFO

12

Q4 and FY 2019 Results

Adjusted Results(1)

	Q4	Q4	Q3
$ millions	2019	2018	2019
Net Revenue	$397	$498	$378
Gross Margin	43%	51%	40%
R&D Expense	$43	$50	$39
SG&A Expense	$64	$60	$57
EBITDA	$81	$187	$71
Diluted EPS	$0.08	$0.33	$0.04

Variance

YOY Sequential

(20%)5%

(780)bps 350bps

(15%)9%

7%13%

(57%)14%

(76%)100%

Revenue and Gross Margin impacted by:

• Price erosion due to additional competition on our existing product portfolio
• Sale of international businesses
• 37 new generic products launched during 2019
• Gross Margin impacted by generic price erosion, product sales mix, and unfavorable manufacturing variances and inventory obsolescence charges

R&D and SG&A impacted by:

• Lower operating expenses due to cost synergies from the combination with Impax and controlled spending
• Higher legal expenses and business taxes in Q4 2019

Continued focus on eliminating core inefficiencies and

streamlining operations

- Improving manufacturing utilization and revenue -

13

(1) See the Non-GAAP Financial Measures page of this presentation for a discussion of these Non-GAAP measures and the Appendix to this presentation for a reconciliation thereof to the most directly comparable GAAP measures.

Generics Segment

Adjusted Results(1)

$ millions

$411	Net Revenue			Gross Margin		$150Operating Income
	$291	$300	45%
				30%	33%
							$49
							$40
Q4 18	Q3 19	Q4 19	Q4 18	Q3 19	Q4 19	Q4 18	Q3 19	Q4 19

• Year-over-yeardecrease: price erosion due to additional competition on existing product portfolio, sale of international businesses and reclassification of Oxymorphone HCI to Specialty segment, partially offset by new product launches
• Sequential increase: new product launches, including EluRyng (generic Nuvaring) and Sucralfate (generic Carafate)

• Year-over-yeardecrease: price erosion, product sales mix and the impact of volume declines leading to underutilization of manufacturing facilities
• Sequential increase: favorable volume and mix, new product launches and lower inventory obsolescence charges, which more than offset price erosion

• Year-over-yeardecrease: lower revenue, gross margin compression and reclassification of Oxymorphone HCI to Specialty segment, partially offset by reduced operating expenses
• Sequential increase: higher revenue driven by new product launches and gross margin expansion

14

(1) See the Non-GAAP Financial Measures page of this presentation for a discussion of these Non-GAAP measures and the Appendix to this presentation for a reconciliation thereof to the most directly comparable GAAP measures.

Specialty Segment

Adjusted Results(1)

$ millions

	Net Revenue			Gross Margin		$51	Operating Income
		$97
							$46
$87	$87		81%				$41
			74%	75%
Q4 18	Q3 19	Q4 19	Q4 18	Q3 19	Q4 19	Q4 18	Q3 19	Q4 19

▪Year-over-year increase: higher sales of Unithroid®		▪Year-over-year decrease: primarily significant		▪Year-over-year decrease: primarily due to loss of
and the reclassification of Oxymorphone HCI from		reduction in sales of higher margin Albenza and the		exclusivity of Albenza, higher managed care
the Generics segment		addition of lower margin Oxymorphone HCI		rebates and Medicare coverage gap liability,
▪Sequential increase: higher sales of Rytary®,				partially offset by addition of Oxymorphone HCI
Unithroid® and Zomig®				▪Sequential increase: primarily product mix offset by
				higher rebates and coverage gap liability for timing
				of claims

15

(1) See the Non-GAAP Financial Measures page of this presentation for a discussion of these Non-GAAP measures and the Appendix to this presentation for a reconciliation thereof to the most directly comparable GAAP measures.

Cash Flow and Balance Sheet Information

$ millions

				$321																	$ millions	Q4 2019	Q3 2019	Change
							$305														Cash and cash equivalents(5)	$153	$217	($64)
																					Accounts receivable	$604	$518	$86
										$5	$10						Current portion and long-term debt(1)	$2,631	$2,636	($5)
									$37
																					Cash flow from operations	($51)	$140	---
	$217																$28
																			$153
																				Gross Debt to LTM Adjusted EBITDA(2)	7.4x	5.7x
																					Net Debt to LTM Adjusted EBITDA(3)	7.0x	5.2x
Opening cash		Sales	Non-GAAP Interest		Cap-ex		Legal	Other(4)	Ending cash
September 30	collections		cash				settlement		December 31

expenses

• $64 million decrease in cash during Q4
• Negative cash flow from operations in Q4 due to timing of customer deductions and expenditure disbursements
• Executed interest rate swap in October 2019 to convert portion of floating rate debt to fixed rate debt
• Leverage ratios increased due to lower LTM Adjusted EBITDA
• • Sufficient cash flow to fund debt payments and invest in internal / external growth initiatives
  • 1. Current portion oflong-term debt, net and long-term debt, net
    2. Gross debt = Current portion andlong-term debt. See the Non-GAAP Financial Measures page of this presentation for a discussion of these Non-GAAP measures and the Appendix to this presentation for a

reconciliation of adjusted EBITDA to the most directly comparable GAAP measures.	16
(3)	Net debt = Current portion and long-term debt less cash and cash equivalents. See the Non-GAAP Financial Measures page of this presentation for a discussion of these Non-GAAP measures and the Appendix to
this presentation for a reconciliation of adjusted EBITDA to the most directly comparable GAAP measures.
(4)	Includes, but is not limited to, debt payments, milestone payments, restructuring expenses and other acquisition, transaction and integrated-related expenditures
(5)	Includes restricted cash at December 31, 2019 and September 30, 2019 of approximately $2 million and $4 million, respectively.

2020 Financial Outlook(1)

(in $ millions except for Adjusted Diluted EPS)	2019	2020 Outlook
Net Revenues	$1,626	$1,875 - $1,975
Adjusted Gross Margin	44%	44%	- 46%
Adjusted EBITDA	$356	$400	- $450
Adjusted Diluted EPS	$0.35	$0.45 - 0.60
Weighted Average Diluted Shares Outstanding(2)	Approximately 299 million	Approximately 300 million
Operating Cash Flow	$2	$150	- $200
Capital Expenditures	$47	$60	- $70

1. Amneal's full year 2020 estimates, which include the January 31, 2020 transaction with AvKARE Inc. and its related affiliate doing business as R&S Northeast, are based on management's current expectations, including with respect to prescription trends, pricing levels, inventory levels, and the anticipated timing of future product launches and events. The Company cannot provide a reconciliation betweenNon-GAAP projections and the most directly comparable GAAP measures without unreasonable efforts because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items required for the reconciliation. The items include, but are not limited to, acquisition-related expenses, restructuring expenses and benefits, asset impairments and other gains and losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for 2020.
2. Under theif-converted method, weighted average diluted shares outstanding consists of Class A and Class B shares. See the Non-GAAP Financial Measures page of this presentation of these Non-GAAP measures.

17

Closing Remarks

Chirag Patel

Co-CEO

18

Q&A

Appendix:

Non-GAAP

Reconciliations

20

Reconciliation of Net Loss to EBITDA and Adjusted EBITDA

($) in thousands

Net loss

Adjusted to add (deduct):

Interest expense, net

Income tax expense (benefit)

Depreciation and amortization

EBITDA (Non-GAAP)

Adjusted to add (deduct):

Gain from reduction of tax receivable agreement liability Stock-based compensation expense

Acquisition and site closure expenses Restructuring and other charges Inventory related charges

Gain (loss) related to legal matters, net Asset impairment charges Amortization of upfront payment Foreign exchange (gain) loss

(Gain) loss on sale of international businesses R&D milestone payments

Other

Adjusted EBITDA (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019		June 30, 2019		March 31, 2019
$	(64,903)	$	(20,330)	$	(363,392)	$	(50,526)	$	(124,752)
	38,829			42,880			42,209			43,886			43,281
	7,792			5,524			389,668			(5,701)			(8,428)
	54,303			47,494			53,358			50,706			48,868
$	36,021		$	75,568		$	121,843		$	38,365		$	(41,031)
$	-	$	(1,665)	$	(192,844)	$	-	$	-
	5,013			3,606			6,095			6,224			4,347
	14,983			28,966			11,230			19,056			28,202
	4,412			14,104			20,937			2,835			6,161
	5,938			9,317			(2,038)			21,443			334
	(2,409)			(497)			15,000			-
	14,655			39,119			79,547			4,408			76,600
	-			10,423			12,531			-			36,393
	(4,722)			(2,817)			-			(8,311)			5,464
	(328)			146			-			1,888			(8,818)
	6,650			5,300			-			5,614			4,315
	342			5,077			(1,387)			559			-
$	80,555	$	186,647	$	70,914	$	92,081	$	111,967

21

Gross Debt and Net Debt to LTM Adjusted EBITDA

($) in thousands	Last Twelve Months
	December 31, 2019		September 30, 2019
Current portion of long-term debt, net	21,479	21,468
Long-term debt, net	2,609,046	2,614,412
Cash and cash equivalents and restricted cash	152,822		217,058
Net debt	2,477,703	2,418,822
Adjusted EBITDA
Q4 2018		186,647
Q1 2019	111,967	111,967
Q2 2019	92,081	92,081
Q3 2019	70,914	70,914
Q4 2019	80,555
LTM (last 12 months)	355,517	461,609
Gross debt to LTM Adjusted EBITDA	7.4	5.7
Net debt to LTM Adjusted EBITDA	7.0	5.2

22

Reconciliation of Net Loss to Adjusted Net Income and Calculation of Adjusted Diluted EPS

($) in thousands

Net loss

Adjusted to add (deduct): Non-cash interest

GAAP Income tax expense

Gain from reduction of tax receivable agreement liability Amortization

Stock-based compensation expense Acquisition and site closure expenses Restructuring and other charges Inventory related charges

Gains related to legal matters, net Asset impairment charges Amortization of upfront payment Foreign exchange gain

(Gain) loss on sale of international business R&D milestone payments

Other

Income tax at 21%

Net income attributable to NCI not associated with our Class B shares

Adjusted net income (Non-GAAP)

Adjusted diluted EPS (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	(64,903)	$	(20,330)	$	(363,392)
	1,629			1,640			1,631
	7,792			5,524			389,668
	-			(1,665)			(192,844)
	40,178			28,878			38,015
	5,013			3,606			6,095
	14,983			28,966			11,230
	4,412			14,104			20,937
	5,963			9,317			(2,038)
	(2,409)			(497)			15,000
	14,655			39,119			79,547
	-			10,423			-
	(4,722)			(2,817)			-
	(328)			146			-
	6,650			5,300			-
	342			5,077			(1,387)
	(6,138)			(26,626)			(3,149)
	(113)			(189)			(91)
$	23,004	$	99,976	$	11,753
$	0.08	$	0.33	$	0.04

23

Reconciliation of Generics Operating Income to Generics Adjusted Operating Income

($) in thousands

Operating (loss) income

Adjusted to add (deduct):

Acquisition and site closure expenses Amortization

Inventory related charges Stock-based compensation expense Asset impairment charges Restructuring and other charges Gains related to legal matters, net Amortization of upfront payment R&D milestone payment

Other

Adjusted operating income (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	(3,093)	$	43,070	$	(80,361)
	6,028			20,905			5,941
	15,483			10,030			10,912
	5,938			3,620			(2,038)
	2,588			1,926			3,982
	14,655			39,119			72,530
	2,900			12,031			14,702
	(2,409)			(97)			15,000
	-			10,423			-
	6,650			5,300			-
	-			3,839			(975)
$	48,740	$	150,166	$	39,693

24

Reconciliation of Generics Cost of Goods Sold to Generics Adjusted Cost of Goods Sold

($) in thousands

Cost of goods sold

Cost of goods sold impairment charges

Adjusted to deduct: Amortization Inventory related charges

Acquisition and site closure expenses Asset impairment charges Stock-based compensation expense Amortization of upfront payment

Adjusted cost of goods sold (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	224,708	$	263,002	$	217,773
	13,721			-			49,115
	15,483			10,030			10,912
	3,089			3,620			(2,038)
	4,715			12,384			3,956
	13,721			510			49,115
	910			406			711
	-			10,423			-
$	200,511	$	225,629	$	204,232

25

Reconciliation of Specialty Operating Income to Specialty Adjusted Operating Income

($) in thousands

Operating income

Adjusted to add: Amortization Inventory related charges

Acquisition and site closure expenses Stock-based compensation expense Restructuring and other charges Asset impairment charges

Other

Adjusted operating income (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	18,012	$	24,010	$	3,596
	24,695			18,848			27,103
	-			5,697			-
	2,641			189			2,522
	532			11			456
	-			1,682			213
	-			-			7,017
	-			163			-
$	45,880	$	50,600	$	40,907

26

Reconciliation of Specialty Cost of Goods Sold to Specialty Adjusted Cost of Goods Sold

($) in thousands

Cost of goods sold

Cost of goods sold impairment charges

Adjusted to deduct:

Amortization

Inventory related charges

Asset impairment charges

Adjusted cost of goods sold (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	48,665	$	41,118	$	49,944
	-			-			7,017
	24,695			18,848			27,103
	-			5,697			-
	-			-			7,017
$	23,970	$	16,573	$	22,841

27

Reconciliation of Research and Development to Adjusted Research and Development

($) in thousands

Research and development IPR&D impairment charges

Intellectual property legal development expenses

Adjusted to deduct:

Stock-based compensation expense Acquisition and site closure expenses Inventory related charges

R&D milestone payments Asset impairment charges Other

Adjusted research and development (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	48,050	$	57,297	$	38,125
	450			38,609			23,382
	4,975			3,237			2,586
	874			536			694
	119			3,967			1,062
	2,849			-			-
	6,650			5,300			-
	450			38,609			23,382
	-			579			-
$	42,533	$	50,152	$	38,955

28

Reconciliation of Selling, General & Administrative to Adjusted Selling, General, & Administrative

($) in thousands

Selling, general and administrative

Adjusted to deduct (add):

Stock-based compensation expense

Acquisition and site closure expenses

Gains related to legal matters, net

Asset impairment charges

Other

Adjusted selling, general and administrative (Non-GAAP)

Three months ended

December 31, 2019		December 31, 2018		September 30, 2019
$	74,084	$	71,236	$	63,797
	3,230			2,664			4,692
	6,442			7,670			3,081
	-			(497)			-
	484			-			32
	83			1,496			(617)
$	63,845	$	59,903	$	56,609

29