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The outcome of patent litigation with Paragraph IV challengers is always uncertain and there can be no assurance to whether we will prevail in this litigation. At present, our pending case against Hetero is currently scheduled to be tried beginning on March 23, 2026.
Margins and capital returns are both well above average: 43.77% operating margin, ROIC at 22.35%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 19.8% YoY with margins expanding 4.1pp. However, free cash flow softened 13%, worth monitoring whether this is timing or structural.
Free cash flow declined 13% versus the prior year, cash generation momentum has weakened. ROIC dropped from 25.44% to 22.35%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$597M
▲ +19.8% YoY
Net Income (TTM)
$221M
▲ +30.8% YoY
Op. Margin
44.83%
▲ +4.1pp YoY
ROIC
20.51%
▼ -3.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$208M
▼ -12.8% YoY
Op. Cash Flow (TTM)
$208M
▼ -13.0% YoY
Net Debt
-$753M
Net Cash Position
Cash & Equiv.
$756M
5Y CAGR: +37.7%
5Y CAGR: +35.9%
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