Acquisitions (Tables)

6 Months Ended

Jun. 30, 2022

Business Acquisition [Line Items]

Schedule of Asset Acquisition

The preliminary purchase price was calculated as follows (in thousands):

Cash	$	84,714
Contingent consideration (royalties) (1)	8,796
Fair value of consideration transferred	$	93,510

(1)The estimated fair value of contingent consideration on the acquisition date was $8.8 million and was based on significant Level 3 inputs that were not observable in the market. Key assumptions included the discount rate, 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.

The following is a summary of the preliminary purchase price allocation for the Saol Acquisition (in thousands):

	Preliminary Fair Values as of February 9, 2022
Inventory	$	2,162
Prepaid expenses and other current assets	98
Goodwill	7,553
Intangible assets	83,815
Total assets acquired	93,628
Accounts payable and accrued expenses	118
Fair value of consideration transferred	$	93,510

Saol Baclofen Franchise Acquisition

Business Acquisition [Line Items]

Schedule of Acquired Intangible Assets

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

	Preliminary Fair Value		Weighted-Average Useful Life (in years)
Marketed product rights	$	83,815	11.6

Puniska Healthcare Pvt Ltd

Business Acquisition [Line Items]

Schedule of Purchase Price

The Puniska Acquisition, excluding the land acquired in December 2021, 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 (1)	$	72,880
Payable to sellers (2)	14,162
Fair value of consideration transferred	$	87,042

(1)     Cash includes the payment made upon execution of the agreement.

(2)     Due to the short-term nature of the payable to the sellers, the principal amount approximates fair value.

Schedule of Purchase Price Allocation

The following is a summary of the preliminary purchase price allocation for the Puniska Acquisition (in thousands):

	Preliminary Fair Values as of November 2, 2021
Cash	$	165
Trade accounts receivable, net	232
Inventories	1,092
Prepaid expenses and other current assets	4,473
Property, plant and equipment	53,423
Goodwill	30,091
Operating lease-right-of-use assets	234
Other assets	1,303
Total assets acquired	91,013
Accounts payable and accrued expenses	1,732
Operating lease liabilities	234
Other long-term liabilities	263
Total liabilities assumed	2,229
Redeemable non-controlling interests	1,742
Fair value of consideration transferred	$	87,042

Kashiv Specialty Pharmaceuticals, LLC

Business Acquisition [Line Items]

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

Schedule of Purchase Price

The 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)	5,200
Settlement of Amneal trade accounts payable due to KSP (3)	(7,117)
Fair value consideration transferred	$	103,122

(1)The deferred consideration was stated at the 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 consisted of $30.0 million, which the Company paid in January 2022 and $0.5 million, which the Company expects to pay during the three months ending September 30, 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 $30.1 million on the date of acquisition. This discount was 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 $8.0 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 $5.7 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)    Represented 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 purchase price allocation for the KSP Acquisition (in thousands):

	Final Fair Values as of April 2, 2021
Cash	$	112
Restricted cash	500
Prepaid expenses and other current assets	381
Property, plant and equipment	5,375
Goodwill	43,530
Intangible assets	56,400
Operating lease right-of-use assets	9,367
Total assets acquired	115,665
Accounts payable and accrued expenses	1,239
Operating lease liability	9,177
Related party payable	127
Total liabilities assumed	10,543
Non-controlling interests	2,000
Fair value of consideration transferred	$	103,122