Amneal Pharmaceuticals Inc

Previous wording

The following discussion and analysis for the three and six months ended June 30, 2024 should also be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K.

Current wording

The following discussion and analysis for the three and nine months ended September 30, 2024 should also be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements for the year ended December 31, 2023 included in our 2023 Annual Report on Form 10-K.

Previous wording

Our Specialty segment is engaged in the development, promotion, sale and distribution of proprietary branded pharmaceutical products, with a focus on products addressing central nervous system (“CNS”) disorders, including Parkinson’s disease, and endocrine disorders. Our portfolio of products includes RYTARY®, an extended release oral capsule formulation of carbidopa-levodopa for the treatment of Parkinson’s disease, post-encephalitic parkinsonism, and parkinsonism that may follow carbon monoxide intoxication or manganese intoxication. In addition to RYTARY®, our promoted Specialty portfolio also includes UNITHROID® (levothyroxine sodium), for the treatment of hypothyroidism, which is sold under a license and distribution agreement with Jerome Stevens Pharmaceuticals, Inc., and ONGENTYS® (opicapone), an add-on treatment to carbidopa/levodopa in patients with Parkinson’s disease experiencing “Off” episodes, which we commenced selling in early 2024 under a license agreement with BIAL-Portela & Ca., S.A.

Current wording

Our Specialty segment is engaged in the development, promotion, sale and distribution of proprietary branded pharmaceutical products, with a focus on products addressing central nervous system disorders, including Parkinson’s disease, and endocrine disorders. Our portfolio of products includes RYTARY® (extended release oral capsule formulation of carbidopa-levodopa), CREXONT® (combination of carbidopa and levodopa extended release capsules), UNITHROID® (levothyroxine sodium), and ONGENTYS® (opicapone). RYTARY® is indicated for the treatment of Parkinson’s disease, post-encephalitic parkinsonism, and parkinsonism that may follow carbon monoxide intoxication or manganese intoxication. On August 7, 2024, the FDA approved our new drug application for CREXONT®, previously referred to as IPX203. We began selling CREXONT®, which is indicated for the treatment of Parkinson’s disease, in September 2024. UNITHROID®, indicated for the treatment of hypothyroidism, is sold under a license and distribution agreement with Jerome Stevens Pharmaceuticals, Inc. ONGENTYS® is an add-on treatment to carbidopa/levodopa in patients with Parkinson’s disease experiencing “Off” episodes, which we commenced selling in early 2024 under a license agreement with BIAL-Portela & Ca., S.A.

Previous wording

While it is difficult to accurately measure the impact of inflation, we estimate our business will experience an increase in costs due to inflation of approximately $10.0 million to $15.0 million for the year ending December 31, 2024, excluding the impact of rising interest rates. Notwithstanding our estimates, rising inflationary pressures due to higher input costs, including higher material, transportation, labor and other costs, could exceed our expectations, which would further adversely impact our operating results in future periods.

Current wording

While it is difficult to accurately measure the impact of inflation, we estimate our business will experience an increase in costs due to inflation of approximately $10.0 million to $15.0 million for the year ending December 31, 2024, excluding the impact of interest rates. Notwithstanding our estimates, rising inflationary pressures due to higher input costs, including higher material, transportation, labor and other costs, could exceed our expectations, which would further adversely impact our operating results in future periods.

Previous wording

•Growth in our Generics segment net revenue of $53.6 million, primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $16.7 million of year-over-year growth and other new generic products that contributed $36.2 million of year-over-year growth, and strong volume growth.

Current wording

•Growth in our Generics segment net revenue of $36.5 million, primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $5.7 million of year-over-year growth and other new generic products that contributed $34.8 million of year-over-year growth.

Previous wording

•Growth in our AvKARE segment net revenue of $42.1 million, primarily driven bygrowth in our distribution channel and government label channel which resulted from new product introductions.

Current wording

•Growth in our AvKARE segment net revenue of $27.6 million, primarily driven bygrowth in our distribution channel and government label channel which resulted from new product introductions.

Previous wording

Cost of goods sold increased 19.2% for thethree months ended June 30, 2024 as compared to the prior year period. The increase in cost of goods sold was primarily due to increased AvKARE and Generics volume and increased plant and freight costs, partially offset by efficiencies in our supply costs.

Current wording

Cost of goods sold increased 11.7% for thethree months ended September 30, 2024 as compared to the prior year period. The increase in cost of goods sold was primarily due to increased AvKARE and Generics volume, increased plant and freight costs, and an increased inventory provision, partially offset by efficiencies in our supply costs.

Previous wording

Selling, general, and administrative (“SG&A”) expenses for the three months ended June 30, 2024 increased 10.3% as compared to the prior year period primarily due to increases in employee compensation, promotion associated with ONGENTYS® and our planned launch of IPX203, and costs associated with growth in biosimilar revenues.

Current wording

Selling, general, and administrative (“SG&A”) expenses for the three months ended September 30, 2024 increased 5.0% as compared to the prior year period, primarily due to increases in employee compensation and promotion associated with ONGENTYS® and CREXONT®.

Previous wording

Research and development (“R&D”) expenses for the three months ended June 30, 2024 decreased 4.6% as compared to the prior year period primarily due to a decrease in in-licensing and upfront milestone payments of $0.7 million and operating efficiencies in our infrastructure.

Current wording

Research and development (“R&D”) expenses for the three months ended September 30, 2024 increased 47.7% as compared to the prior year period, primarily due to an increase in in-licensing and upfront milestone payments of $23.8 million, including $20.0 million associated with our exclusive license of Omalizumab (refer to Note 19. Related Party Transactions for additional information), partially offset by operating efficiencies in our infrastructure.

Previous wording

Total other expense, net for the six months ended June 30, 2024 increased 48.3% as compared to the prior year period. The increase was primarily driven by a $31.3 million increase in interest expense as a result of higher rates on our variable-rate debt and an increase in the amount outstanding on our revolving credit facility and a $14.2 million increase in our tax receivable agreement liability (refer to Note 5. Income Taxes for additional information), partially offset by a gain on the sale of a subsidiary in India of $3.8 million (refer to Note 19. Related Party Transactions for additional information).

Current wording

Total other expense, net for the three months ended September 30, 2024 increased 39.3% as compared to the prior year period. The increase was primarily driven by a $14.6 million increase in interest expense as a result of higher rates on our variable-rate debt and an increase in the amount outstanding on our revolving credit facility and a $10.7 million increase in our tax receivable agreement liability (refer to Note 5. Income Taxes for additional information), partially offset by a gain resulting from favorable period-over-period foreign exchange rates primarily driven by the Euro.

Previous wording

For the three months ended June 30, 2024, our provision for income taxes and effective tax rate were $3.6 million and 17.7%, respectively. For the three months ended June 30, 2023, the Company’s benefit from income taxes and effective tax rate were both immaterial. The period-over-period changes in the provision for income taxes and effective tax rate were primarily related to changes in the jurisdictional mix of income.

Current wording

For the three months ended September 30, 2024, our provision for income taxes and effective tax rate were $3.7 million and 23.8%, respectively. For the three months ended September 30, 2023, the Company’s benefit from income taxes and effective tax rate were$(2.1) million and (9.0)%, respectively. The period-over-period changes in the provision for income taxes and effective tax rate were primarily related to changes in the jurisdictional mix of income and a discrete Indian tax benefit of approximately $2.9 million from the utilization of a loss carryforward during the three months ended September 30, 2023.

Previous wording

Generics cost of goods sold for the three months ended June 30, 2024 increased 15.9% as compared to the prior year period primarily due to costs associated with increased sales volume and increased plant and freight costs, partially offset by efficiencies in our supply costs.

Current wording

Generics cost of goods sold for the three months ended September 30, 2024 increased 5.5% as compared to the prior year period, primarily due to costs associated with increased sales volume and increased plant and freight costs, partially offset by efficiencies in our supply costs.

Previous wording

Specialty cost of goods sold for the three months ended June 30, 2024 was flat compared to the prior year period, as growth in promoted products was offset by declines in our lower margin non-promoted products. Specialty gross profit as a percentage of net revenue increased to 55.7% for the three months ended June 30, 2024 as compared to 52.0% in the prior year period due to growth in our higher margin promoted products.

Current wording

Specialty gross profit as a percentage of net revenue increased to 54.7% for the three months ended September 30, 2024 as compared to 53.2% in the prior year period, primarily due to growth in our higher margin promoted products.

Previous wording

Specialty SG&A expense for the three months ended June 30, 2024 increased 16.9% as compared to the prior year period primarily due to increases in promotional costs associated with ONGENTYS® and our planned launch of IPX203.

Current wording

Specialty SG&A expense for the three months ended September 30, 2024 increased 21.8% as compared to the prior year period, primarily due to increases in promotional costs associated with ONGENTYS® and CREXONT®.

Previous wording

Specialty R&D expenses for the three months ended June 30, 2024 decreased 35.0% as compared to the prior year period primarily due to reduced project spend of $1.1 million and reduced infrastructure costs.

Current wording

Specialty R&D expense for the three months ended September 30, 2024 decreased 36.3% as compared to the prior year period, primarily due to reduced project spend of $0.7 million and reduced infrastructure costs.

Previous wording

AvKARE cost of goods sold for the three months ended June 30, 2024 increased 34.9% as compared to the prior year period, and gross profit as a percentage of net revenue decreased to 15.0% for the three months ended June 30, 2024 from 16.4% in the prior year period, primarily due to the increase in sales through our lower margin distribution channel.

Current wording

AvKARE cost of goods sold for the three months ended September 30, 2024 increased 24.2% as compared to the prior year period, and gross profit as a percentage of net revenue decreased to 17.7% for the three months ended September 30, 2024 from 19.9% in the prior year period, primarily due to the increase in sales through our lower margin distribution channel and an increased inventory provision.

Previous wording

The following table sets forth our summarized, consolidated results of operations for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

The following table sets forth our summarized, consolidated results of operations for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

•Growth in our Generics segment net revenue of $101.1 million, primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $41.3 million of year-over-year growth and other new generic products that contributed $55.4 million of year-over-year growth, and strong volume growth. Net revenue for thesix months ended June 30, 2023 included a non-recurring customer order of $21.0 million.

Current wording

•Growth in our Generics segment net revenue of $137.6 million, primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $47.0 million of year-over-year growth and other new generic products that contributed $90.2 million of year-over-year growth, and strong volume growth, partially offset by price erosion. Net revenue for thenine months ended September 30, 2023 included a non-recurring customer order of $21.0 million.

Previous wording

•Growth in our AvKARE segment net revenue of $82.7 million, primarily driven bygrowth in our distribution channel and government label channel which resulted from new product introductions.

Current wording

•Growth in our AvKARE segment net revenue of $110.3 million, primarily driven bygrowth in our distribution channel and government label channel which resulted from new product introductions.

Previous wording

•Growth in our Specialty segment net revenue of $7.0 million, primarily driven by a $9.4 million increase in our promoted neurology portfolio, of which $3.5 million was comprised of sales of ONGENTYS®, which launched during the first quarter of 2024, and growth in our promoted endocrinology portfolio of $2.7 million, partially offset by declines in our non-promoted products.

Current wording

•Growth in our Specialty segment net revenue of $38.9 million, primarily driven by a $35.6 million increase in our promoted Parkinson’s franchise, of which $11.8 million was comprised of sales of ONGENTYS®, which launched in January 2024, and initial sales of CREXONT®, which launched in September 2024. Additionally, growth in our promoted endocrinology portfolio of $11.1 million was partially offset by declines in our non-promoted products.

Previous wording

Cost of goods sold increased 15.1% for the six months ended June 30, 2024 as compared to the prior year period. The increase in cost of goods sold was primarily due to increased AvKARE and Generics volume and increased plant and freight costs, partially offset by efficiencies in our supply costs. Cost of goods sold for the six months ended June 30, 2023 included $11.0 million associated with the non-recurring customer order in our Generics segment discussed above.

Current wording

Cost of goods sold increased 14.0% for the nine months ended September 30, 2024 as compared to the prior year period. The increase in cost of goods sold was primarily due to increased AvKARE and Generics volume, increased plant and freight costs, and an increased inventory provision, partially offset by efficiencies in our supply costs. Cost of goods sold for the nine months ended September 30, 2023 included $11.0 million associated with the non-recurring customer order in our Generics segment discussed above.

Previous wording

SG&A expenses for the six months ended June 30, 2024 increased 10.3% as compared to the prior year period primarily due to increases in employee compensation, promotion associated with ONGENTYS® and our planned launch of IPX203, charges associated with our growing biosimilars, and annual fees assessed on branded prescription drug manufacturers, which are also applicable to certain of our generic products.

Current wording

SG&A expenses for the nine months ended September 30, 2024 increased 8.4% as compared to the prior year period, primarily due to increases in employee compensation, promotion associated with ONGENTYS® and CREXONT®, increased charges associated with our growing biosimilars, and annual fees assessed on branded prescription drug manufacturers, which are also applicable to certain of our generic products.

Previous wording

For the six months ended June 30, 2024, charges related to legal matters, net of $95.1 million were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the U.S. Refer to Note 17. Commitments and Contingencies for additional information.

Current wording

For the nine months ended September 30, 2024, charges related to legal matters, net of $94.9 million were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against us by political subdivisions and Native American tribes across the U.S. Refer to Note 17. Commitments and Contingencies for additional information.

Previous wording

Total other expense, net for the three months ended June 30, 2024 increased 48.9% as compared to the prior year period. The increase was primarily driven by a $14.9 million increase in interest expense as a result of higher rates on our variable-rate debt and an increase in the amount outstanding on our revolving credit facility and a $13.0 million increase in our tax receivable agreement liability (refer to Note 5. Income Taxes for additional information), partially offset by a gain on the sale of a subsidiary in India of $3.8 million (refer to Note 19. Related Party Transactions for additional information).

Current wording

Total other expense, net for the nine months ended September 30, 2024 increased 45.1% as compared to the prior year period. The increase was primarily driven by a $45.9 million increase in interest expense as a result of higher rates on our variable-rate debt and an increase in the amount outstanding on our revolving credit facility and a $24.8 million increase in our tax receivable agreement liability (refer to Note 5. Income Taxes for additional information), partially offset by a gain on the sale of a subsidiary in India of $3.8 million (refer to Note 19. Related Party Transactions for additional information).

Previous wording

For the six months ended June 30, 2024, our provision for income taxes and effective tax rate were$9.8 million and(17.7)%, respectively, as compared to a provision for income taxes and effective tax rate of$0.6 million and 3.2%, respectively, for the six months ended June 30, 2023. The period-over-period changes in the provision for income taxes and effective tax rate primarily related to changes in the jurisdictional mix of income.

Current wording

For the nine months ended September 30, 2024, our provision for income taxes and effective tax rate were$13.4 million and(33.9)%, respectively, as compared to a benefit from income taxes and effective tax rate of$(1.4) million and(3.3)%, respectively, for the nine months ended September 30, 2023. The period-over-period changes in the provision for income taxes and effective tax rate primarily related to changes in the jurisdictional mix of income and a discrete Indian tax benefit of approximately $2.9 million from the utilization of a loss carryforward during the three months ended September 30, 2023.

Previous wording

The following table sets forth results of operations for our Generics segment for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

The following table sets forth results of operations for our Generics segment for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

Generics net revenue for the six months ended June 30, 2024 increased 14.1% as compared to the prior year period primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $41.3 million of year-over-year growth and other new generic products that contributed $55.4 million of year-over-year growth, and strong volume growth. Net revenue for thesix months ended June 30, 2023 included a non-recurring customer order of $21.0 million.

Current wording

Generics net revenue for the nine months ended September 30, 2024 increased 12.4% as compared to the prior year period, primarily due to new generic products launched in 2024 and 2023, which include biosimilars that contributed $47.0 million of year-over-year growth and other new generic products that contributed $90.2 million of year-over-year growth, and strong volume growth, partially offset by price erosion. Net revenue for thenine months ended September 30, 2023 included a non-recurring customer order of $21.0 million.

Previous wording

Generics cost of goods sold for the six months ended June 30, 2024 increased 9.9% as compared to the prior year period primarily due to costs associated with increased sales volume and increased plant and freight costs, partially offset by efficiencies in our supply costs. Cost of goods sold for thesix months ended June 30, 2023 included $11.0 million associated with the non-recurring customer order discussed above.

Current wording

Generics cost of goods sold for the nine months ended September 30, 2024 increased 8.4% as compared to the prior year period, primarily due to costs associated with increased sales volume and increased plant and freight costs, partially offset by efficiencies in our supply costs. Cost of goods sold for thenine months ended September 30, 2023 included $11.0 million associated with the non-recurring customer order discussed above.

Previous wording

Generics SG&A expense for the six months ended June 30, 2024 increased 16.3% as compared to the prior year period primarily due to increases in employee compensation driven by infrastructure expansion and promotion associated with our biosimilar launches and the annual fees assessed on branded prescription drug manufacturers.

Current wording

Generics SG&A expense for the nine months ended September 30, 2024 increased 7.3% as compared to the prior year period, primarily due to increases in employee compensation driven by infrastructure expansion and promotion associated with our biosimilar launches and the annual fees assessed on branded prescription drug manufacturers (applicable to certain of our generic products), partially offset by reduced legal fees.

Previous wording

For the six months ended June 30, 2024, charges related to legal matters, net of $95.1 million were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against the Company by political subdivisions and Native American tribes across the U.S. Refer to Note 17. Commitments and Contingencies for additional information.

Current wording

For the nine months ended September 30, 2024, charges related to legal matters, net of $94.9 million were primarily associated with a settlement in principle on the primary financial terms for a nationwide resolution to the opioids cases that have been filed and that might have been filed against us by political subdivisions and Native American tribes across the U.S. Refer to Note 17. Commitments and Contingencies for additional information.

Previous wording

The following table sets forth results of operations for our Specialty segment for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

The following table sets forth results of operations for our Specialty segment for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

Specialty cost of goods sold for the six months ended June 30, 2024 increased 1.4% as compared to the prior year period, primarily due to growth in our promoted products, partially offset by declines in our lower margin non-promoted products. Specialty gross profit as a percentage of net revenue increased to 56.5% for the six months ended June 30, 2024 as compared to 52.5% in the prior year period due to growth in our higher margin promoted products.

Current wording

Specialty cost of goods sold for the nine months ended September 30, 2024 increased 5.9% as compared to the prior year period, primarily due to growth in our promoted products, partially offset by declines in our lower margin non-promoted products. Specialty gross profit as a percentage of net revenue increased to 55.9% for the nine months ended September 30, 2024 as compared to 52.7% in the prior year period due to growth in our higher margin promoted products.

Previous wording

Specialty SG&A expense for the six months ended June 30, 2024 increased 14.8% as compared to the prior year period primarily due to increases in promotional costs associated with ONGENTYS® and our planned launch of IPX203 and an increase in the annual fees assessed on branded prescription drug manufacturers.

Current wording

Specialty SG&A expense for the nine months ended September 30, 2024 increased 17.1% as compared to the prior year period, primarily due to increases in promotional costs associated with ONGENTYS® and CREXONT®.

Previous wording

Specialty R&D expenses for the six months ended June 30, 2024 decreased 28.8% as compared to the prior year period primarily due to reduced project spend of $1.7 million and reduced infrastructure costs.

Current wording

Specialty R&D expenses for the nine months ended September 30, 2024 decreased 31.2% as compared to the prior year period, primarily due to reduced project spend of $2.4 million and reduced infrastructure costs.

Previous wording

The following table sets forth results of operations for our AvKARE segment for the six months ended June 30, 2024 and 2023 (in thousands):

Current wording

The following table sets forth results of operations for our AvKARE segment for the nine months ended September 30, 2024 and 2023 (in thousands):

Previous wording

AvKARE cost of goods sold for the six months ended June 30, 2024 increased 32.1% as compared to the prior year period, and gross profit as a percentage of net revenue increased to 15.6% for the six months ended June 30, 2024 from 15.0% in the prior year period, primarily due to the increase in sales through our higher margin government channel, including higher margin new product introductions.

Current wording

AvKARE cost of goods sold for the nine months ended September 30, 2024 increased 29.4% as compared to the prior year period, and gross profit as a percentage of net revenue decreased to 16.3% for the nine months ended September 30, 2024 from 16.7% in the prior year period, primarily due to the increase in sales through our lower margin distribution channel and an increased inventory provision.

Previous wording

AvKARE SG&A expense for the three months ended June 30, 2024 increased 4.5% as compared to the prior year period primarily due to higher sales-related expenses and professional fees, partially offset by reduced logistic costs.

Current wording

AvKARE SG&A expense for the nine months ended September 30, 2024 increased 8.3% as compared to the prior year period, primarily due to higher sales-related expenses, increases in employee compensation and higher professional fees, partially offset by reduced logistic costs.

Previous wording

Our primary source of liquidity is cash generated from operations, available cash on hand, and borrowings under debt financing arrangements (as defined and discussed in Note 16. Debt in our 2023 Annual Report on Form 10-K). We have access to$416.9 million of available capacity under the Amended New Revolving Credit Facility and$28.0 million of available capacity under the Amended Rondo Revolving Credit Facility as of June 30, 2024. We believe these sources are sufficient to fund our planned operations, meet our interest and contractual obligations, including acquisitions, and provide sufficient liquidity over the next 12 months from the date of filing of this Form 10-Q. However, our ability to satisfy our working capital requirements and debt obligations will depend upon economic conditions, our ability to negotiate and maintain satisfactory terms under our borrowing and debt facilities in the future, and demand for our products, which are factors that may be out of our control. Our primary uses of capital resources are to fund operating activities, including R&D expenses associated with new product filings, and pharmaceutical product manufacturing expenses, license payments, spending on production facility expansions, capital equipment, acquisitions, and legal settlements.

Current wording

Our primary source of liquidity is cash generated from operations, available cash on hand, and borrowings under debt financing arrangements (as defined and discussed in Note 16. Debt in our 2023 Annual Report on Form 10-K). We have access to$455.2 million of available capacity under the Amended New Revolving Credit Facility and$28.0 million of available capacity under the Amended Rondo Revolving Credit Facility as of September 30, 2024. We believe these sources are sufficient to fund our planned operations, meet our interest and contractual obligations, including acquisitions, and provide sufficient liquidity over the next 12 months from the date of filing of this Form 10-Q. However, our ability to satisfy our working capital requirements and debt obligations will depend upon economic conditions, our ability to negotiate and maintain satisfactory terms under our borrowing and debt facilities in the future, and demand for our products, which are factors that may be out of our control. Our primary uses of capital resources are to fund operating activities, including R&D expenses associated with new product filings, and pharmaceutical product manufacturing expenses, license payments, spending on production facility expansions, capital equipment, acquisitions, and legal settlements.

Previous wording

We estimate that we will invest approximately $60.0 million to $70.0 million during 2024 for capital expenditures to support and grow our existing operations, primarily related to investments in manufacturing equipment, information technology and facilities.

Current wording

We estimate that we will invest approximately $60.0 million to $70.0 million during 2024 for capital expenditures to support and grow our existing operations, primarily related to investments in manufacturing facilities and equipment, and information technology.

Previous wording

Over the next 12 months, we expect to make substantial payments, including monthly interest and quarterly principal amounts due for our Term Loan Due 2028, monthly interest and the remaining principal balance on our Term Loan Due 2025, monthly interest on our Amended New Credit Facility, and contractual payments for leased premises. Refer to Note 16. Debt, Note 18. Leases, and Commitments and Contractual Obligations under Part II, Item 7. Management’s Discussion and Analysis of

Current wording

Over the next 12 months, we expect to make substantial payments, including monthly interest and quarterly principal amounts due for our Term Loan Due 2028, monthly interest and the remaining principal balance on our Term Loan Due 2025, monthly interest on our Amended New Credit Facility, and contractual payments for leased premises. Refer to Note 16. Debt, Note 18. Leases, and Commitments and Contractual Obligations under Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Annual Report on Form 10-K for additional information on our indebtedness and leases, respectively.

Previous wording

In late April 2024, we reached a nationwide settlement in principle on the primary financial terms, with no admission of wrongdoing, for a nationwide resolution to the opioids cases that have been filed and that might have been filed by Attorneys General, political subdivisions and Native American tribes. Refer to Note 17. Commitments and Contingencies for additional information.

Current wording

In late April 2024, we reached a nationwide settlement in principle on the primary financial terms, with no admission of wrongdoing, for a nationwide resolution to the opioids cases that have been filed and that might have been filed by Attorneys