Amneal to Acquire Majority Interest in AvKARE, Enhancing Access to Growing Federal Healthcare Market Bridgewater, New Jersey and Fountain Run, Kentucky

Amneal to Acquire Majority Interest in AvKARE, Enhancing Access

to Growing Federal Healthcare Market

Bridgewater, New Jersey and Fountain Run, Kentucky December 10, 2019 Amneal Pharmaceuticals, Inc. (NYSE: AMRX) and AvKARE Inc. today

announced they have entered into a definitive agreement under which Amneal will acquire a 65.1% majority interest in AvKARE and its related affiliate doing business as R&S Northeast (collectively, AvKARE ) for an implied enterprise

value of $340 million. Following the close of the transaction, AvKARE will operate on a standalone basis as an independent subsidiary of Amneal.

AvKARE 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 ( DoD ) and the Department of Veterans Affairs ( VA ). The company utilizes its relationships with more than 50 generic pharmaceutical vendors to offer a proprietary line of specially packaged products under its own

When we re-joined Amneal as Co-CEOs in August, we outlined

a vision for our long-term strategy, said Amneal Co-Founders and Co-Chief Executive Officers Chirag Patel and Chintu Patel. While we remain extremely focused

on organic growth, we also recognized that M&A would be a key element of our growth story, and that we would pursue the right opportunities that strategically fit our business. And we articulated what we would look for: opportunities to

complement our existing distribution network, provide us with defensible, durable revenue streams and, ultimately, earnings that are accretive to ours. The AvKARE transaction meets all of these criteria, and we are excited about the value we expect

it will create for patients, shareholders and other stakeholders.

The addition of AvKARE and its differentiated platform provides a unique

opportunity for Amneal to diversify our business and open growth opportunities in the large, complex and growing federal healthcare market, continued Messrs. Patel. Amneal is among the largest generic drug companies domiciled in the

U.S., and prioritizing our American operations and customers remains a top priority. With AvKARE, we believe Amneal will be well-positioned to utilize our extensive U.S.-based manufacturing network to supply products to the federal healthcare

market. We look forward to completing the AvKARE transaction and strengthening our focus on providing affordable medicines to patients.

are pleased to enter into this transaction with Amneal, a leading provider of affordable medicines to federal agencies and one of our long-term business partners, said Steve Shirley, Chief Executive Officer of R&S Northeast and Executive

Vice President of AvKARE. We look forward to working with our entire network of vendor partners, as well as our customers at both the VA and DoD, and will continue to identify new opportunities in which we can better serve government agencies.

In addition, we will continue to retain a large ownership interest in AvKARE and manage operations with our existing leadership team as an independent subsidiary of Amneal. We look forward to continuing to utilize our expertise in supplying

affordable generic pharmaceuticals to federal agencies through our diverse vendor portfolio, and could not be more passionate about entering the next chapter of our company s growth.

Compelling Strategic and Financial Benefits

Financing and Approvals

Under the terms of the

transaction, Amneal will acquire its majority interest through an unrestricted subsidiary, which will finance the purchase of AvKARE with a new $180 million senior secured term loan facility, approximately $75 million of balance sheet cash

and an approximately $44 million Seller Note, with the balance of the implied enterprise value contributed through the selling shareholders rollover interest in the newly formed subsidiary. The new debt financing will be secured by the

newly formed unrestricted subsidiary and will not impact Amneal s existing term loan facility.

The contributed rollover interest will be retained by

the Shirley family, AvKARE s founders, who will continue to independently manage the operations of the business. Mr. Shirley will continue to lead the business and will report to Chirag Patel.

The transaction is expected to be completed in early 2020, subject to the satisfaction of customary closing conditions and approval from relevant regulatory

agencies, including clearance under the Hart-Scott Rodino Antitrust Improvements Act.

SunTrust Robinson Humphrey is serving as lead arranger and financial advisor to Amneal. BofA Securities and RBC Capital Markets, LLC also provided financial

advice. Morgan, Lewis & Bockius LLP is serving as legal counsel to Amneal. Raymond James is serving as financial advisor to AvKARE, and Frost Brown & Todd is serving as AvKARE s legal counsel.

Amneal Pharmaceuticals, Inc. (NYSE: AMRX),

headquartered in Bridgewater, NJ, is a fully-integrated pharmaceutical company focused on the development, manufacture and distribution of generic and specialty drug products. The Company has manufacturing operations in North America, Asia, and

Europe, working together to bring high-quality medicines to patients primarily within the United States.

Amneal has an extensive portfolio of more than

300 generic medicines and is expanding its portfolio to include complex dosage forms including biosimilars in a broad range of therapeutic areas. The Company also markets a portfolio of branded pharmaceutical products through its Specialty segment

focused principally on central nervous system and endocrine disorders. For more information, visit www.amneal.com.

AvKARE is a licensed manufacturer and wholesaler of pharmaceuticals products. AvKARE services a diverse customer base that includes government (federal, state

and municipal) and commercial sectors. AvKARE serves the Department of Defense, Veterans Hospitals, NASA, TriCare, Dept. of Agriculture, Indian Health Services, USDA, U.S. Army, Air Force, Navy, and USMC, as well as Group Purchasing Organizations

that include Amerinet, Innovatix, Health Trust Purchasing Group, IPC, Broadlane/MedAssets and Premier. To learn more about AvKARE, visit https://www.avkare.com/.

Forward-Looking Statements

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, as amended). 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, expected benefits from the AvKARE acquisition, 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 forward-looking statements contained in this press release include, without limitation, statements related to the planned acquisition and the timing and financing thereof and the expected impact of the planned

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: whether and when the required regulatory approvals will be obtained, whether and when the other closing conditions will be satisfied and whether and when the

transaction and related financing will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the

acquisition.. 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 for the fiscal year ended

December 31, 2018, 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, except as otherwise required by United States securities laws.

Todd Branning (908) 280-6019