Pay Versus Performance Disclosure

In accordance with rules adopted by the SEC pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, we provide the following disclosure regarding executive “compensation actually paid” (“CAP”) and certain Company performance measures for the fiscal years listed below. You should refer to our Compensation Discussion & Analysis (“CD&A”) for a complete description of how executive compensation relates to Company performance measures and how the Compensation Committee makes its decisions related thereto.

Pay Versus Performance Table

The following table provides the information required for our principal executive officer (“PEO”) and non-PEO NEOs for each of the fiscal years ended December 31, 2022, December 31, 2021, and December 31, 2020 along with the financial information required to be disclosed for each fiscal year:

Year	Summary Compensation Table Total for PEO(1) $		Summary Compensation Table Total for Former PEO(2) $		Summary Compensation Table Total for Interim PEO(3) $		Compensation Actually Paid to PEO(5)(6) $		Compensation Actually Paid to Former PEO(5)(6) $		Compensation Actually Paid to Interim PEO(5)(6) $		Average Summary Compensation Table Total for Non-PEO NEOs(4) $		Average Compensation Actually Paid to Non-PEO NEOs(5)(6) $		Year-end value of $100 invested on December 31, 2019 in:
Year	Summary Compensation Table Total for PEO(1) $		Summary Compensation Table Total for Former PEO(2) $		Summary Compensation Table Total for Interim PEO(3) $		Compensation Actually Paid to PEO(5)(6) $		Compensation Actually Paid to Former PEO(5)(6) $		Compensation Actually Paid to Interim PEO(5)(6) $				Average Compensation Actually Paid to Non-PEO NEOs(5)(6) $		ANIP $		Peer Group(7) $		Net Income (in millions) $		Revenue (in millions) $
2022		5,112,087		0		0		4,616,875		0		0		1,535,136		1,413,126		65.23		94.77		(47.9)		316.4
2021		6,541,060		0		0		10,473,388		0		0		1,927,619		2,847,003		74.72		139.98		(42.6)		213.1
2020		3,715,036		857,814		962,213		3,830,533		(2,757,466)		626,418		2,429,358		689,410		47.09		144.89		(22.5)		208.5

(1)

The PEO in each reporting year is our current Chief Executive Officer, Nikhil Lalwani.

(2)

The Former PEO in 2020 is Arthur S. Przybyl. Mr. Przybyl served as Chief Executive Officer through May 10, 2020.

(3)

The Interim PEO in 2020 is Patrick D. Walsh. Mr. Walsh served as Interim Chief Executive Officer from May 11, 2020 until September 8, 2020 when Mr. Lalwani commenced employment as Chief Executive Officer.

(4)

Our Non-PEO NEOs includes the following executives by year:

a.

2022: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), Ori Gutwerg (Senior Vice President, Generics), and Christopher K. Mutz (Head of Rare Disease).

b.

2021: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), Ori Gutwerg (Senior Vice President, Generics), and Christopher K. Mutz (Head of Rare Disease).

c.

2020: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), and Robert W. Schrepfer (Former Senior Vice President, New Business Development and Specialty Sales).

(5)

Subtractions from, and additions to, total compensation in the Summary Compensation Table (“SCT”) by year to calculate CAP include:

	2022				2021				2020
	PEO ($)		Average of Other Non-PEO NEOs ($)		PEO ($)		Average of Other Non-CEO PEOs ($)		PEO ($)		Former PEO ($)		Interim PEO ($)		Average of Other Non-PEO NEOs ($)
Total Compensation from SCT		5,112,087		1,535,136		6,541,060		1,927,619		3,715,036		857,814		962,213		2,429,358
Adjustments:
(Subtraction): SCT Value of Stock and Option Awards		(3,806,102)		(881,234)		(4,369,205)		(1,147,142)		(3,305,805)		0		(679,308)		(1,637,904)
Addition: Fair value at year-end of awards granted during the covered fiscal year that are outstanding and unvested at year-end		5,366,964		1,242,624		6,289,690		1,739,550		3,421,302		0		268,765		1,007,514
Addition: Fair value at vest of awards granted and vested during the covered fiscal year		0		0		0		0		0		0		204,450		0
Addition (Subtraction): Year-over-year change in fair value of awards granted in any prior fiscal year that are outstanding and unvested at year end		(1,067,777)		(232,327)		2,092,579		295,425		0		0		0		(785,995)
Addition (Subtraction): Change as of the vesting date (from the end of the prior fiscal year) in fair value of awards granted in any prior fiscal year for which vesting conditions were satisfied at the end of or during the covered fiscal year		(988,296)		(251,073)		(80,735)		31,551		0		(3,615,280)		(129,702)		(323,564)
(Subtraction): Fair value at end of prior year of awards granted in any prior fiscal year that fail to meeting the applicable vesting conditions during the covered fiscal year		0		0		0		0		0		0		0		0
Total Adjustments for Equity Awards		(495,212)		(122,010)		3,932,328		919,384		115,497		(3,615,280)		(335,795)		(1,739,949)
Compensation Actually Paid (as calculated)		4,616,875		1,413,126		10,473,388		2,847,003		3,830,533		(2,757,466)		626,418		689,410

(6)

The following table illustrates the valuation assumptions as of the vesting date for awards that vested in each of 2022, 2021 and 2020.

	Weighted Average Fair Value
Award Type Vesting	2022			2021			2020
RSAs		$	29.45		$	31.51		$	35.84

	For Stock Options Vesting in
	2022	2021	2020
Expected volatility	55% – 63%	51% – 54%	50% – 53%
Expected dividend yield	0%	0%	0%
Expected term, in years	3.0 – 4.5	3.0 – 4.5	3.0 – 4.5
Risk-free interest rate	1.9% – 3.5%	0.4% – 0.9%	0.2% – 0.4%

The following summarizes the valuation assumptions used for stock options awards included as part of CAP:

a.

Expected life of each stock options is based on the “simplified” method using an average of the remaining vesting period and the remaining term, as of the vesting date or fiscal year end date.

b.

Strike price is based on each grant date closing price and asset price is based on each vesting date closing price or fiscal year end closing price.

c.

Risk free rate is based on the Treasury Constant Maturity rate closest to the remaining expected life as of the vesting date or fiscal year end date.

d.

Historical volatility is based on daily price history for each expected life (years) prior to each vesting date or fiscal year end date. Closing prices provided by S&P Capital IQ are adjusted for dividends and splits.

e.

Represents annual dividend yield on each vesting date or fiscal year end date.

(7)

The Peer Group is the S&P 600 Pharmaceuticals, Biotechnology and Life Sciences Index.

Named Executive Officers, Footnote [Text Block]

(1)

The PEO in each reporting year is our current Chief Executive Officer, Nikhil Lalwani.

(2)

The Former PEO in 2020 is Arthur S. Przybyl. Mr. Przybyl served as Chief Executive Officer through May 10, 2020.

(3)

The Interim PEO in 2020 is Patrick D. Walsh. Mr. Walsh served as Interim Chief Executive Officer from May 11, 2020 until September 8, 2020 when Mr. Lalwani commenced employment as Chief Executive Officer.

(4)

Our Non-PEO NEOs includes the following executives by year:

a.

2022: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), Ori Gutwerg (Senior Vice President, Generics), and Christopher K. Mutz (Head of Rare Disease).

b.

2021: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), Ori Gutwerg (Senior Vice President, Generics), and Christopher K. Mutz (Head of Rare Disease).

c.

2020: Stephen P. Carey (Senior Vice President, Finance and Chief Financial Officer), James G. Marken (Senior Vice President, Operations and Product Development), and Robert W. Schrepfer (Former Senior Vice President, New Business Development and Specialty Sales).

PEO Total Compensation Amount

$ 5,112,087

$ 6,541,060

$ 3,715,036

Adjustment To PEO Compensation, Footnote [Text Block]

(5)

Subtractions from, and additions to, total compensation in the Summary Compensation Table (“SCT”) by year to calculate CAP include:

	2022				2021				2020
	PEO ($)		Average of Other Non-PEO NEOs ($)		PEO ($)		Average of Other Non-CEO PEOs ($)		PEO ($)		Former PEO ($)		Interim PEO ($)		Average of Other Non-PEO NEOs ($)
Total Compensation from SCT		5,112,087		1,535,136		6,541,060		1,927,619		3,715,036		857,814		962,213		2,429,358
Adjustments:
(Subtraction): SCT Value of Stock and Option Awards		(3,806,102)		(881,234)		(4,369,205)		(1,147,142)		(3,305,805)		0		(679,308)		(1,637,904)
Addition: Fair value at year-end of awards granted during the covered fiscal year that are outstanding and unvested at year-end		5,366,964		1,242,624		6,289,690		1,739,550		3,421,302		0		268,765		1,007,514
Addition: Fair value at vest of awards granted and vested during the covered fiscal year		0		0		0		0		0		0		204,450		0
Addition (Subtraction): Year-over-year change in fair value of awards granted in any prior fiscal year that are outstanding and unvested at year end		(1,067,777)		(232,327)		2,092,579		295,425		0		0		0		(785,995)
Addition (Subtraction): Change as of the vesting date (from the end of the prior fiscal year) in fair value of awards granted in any prior fiscal year for which vesting conditions were satisfied at the end of or during the covered fiscal year		(988,296)		(251,073)		(80,735)		31,551		0		(3,615,280)		(129,702)		(323,564)
(Subtraction): Fair value at end of prior year of awards granted in any prior fiscal year that fail to meeting the applicable vesting conditions during the covered fiscal year		0		0		0		0		0		0		0		0
Total Adjustments for Equity Awards		(495,212)		(122,010)		3,932,328		919,384		115,497		(3,615,280)		(335,795)		(1,739,949)
Compensation Actually Paid (as calculated)		4,616,875		1,413,126		10,473,388		2,847,003		3,830,533		(2,757,466)		626,418		689,410

Non-PEO NEO Average Compensation Actually Paid Amount

$ 1,413,126

2,847,003

689,410

Equity Valuation Assumption Difference, Footnote [Text Block]

(6)

The following table illustrates the valuation assumptions as of the vesting date for awards that vested in each of 2022, 2021 and 2020.

	Weighted Average Fair Value
Award Type Vesting	2022			2021			2020
RSAs		$	29.45		$	31.51		$	35.84

	For Stock Options Vesting in
	2022	2021	2020
Expected volatility	55% – 63%	51% – 54%	50% – 53%
Expected dividend yield	0%	0%	0%
Expected term, in years	3.0 – 4.5	3.0 – 4.5	3.0 – 4.5
Risk-free interest rate	1.9% – 3.5%	0.4% – 0.9%	0.2% – 0.4%

The following summarizes the valuation assumptions used for stock options awards included as part of CAP:

a.

Expected life of each stock options is based on the “simplified” method using an average of the remaining vesting period and the remaining term, as of the vesting date or fiscal year end date.

b.

Strike price is based on each grant date closing price and asset price is based on each vesting date closing price or fiscal year end closing price.

c.

Risk free rate is based on the Treasury Constant Maturity rate closest to the remaining expected life as of the vesting date or fiscal year end date.

d.

Historical volatility is based on daily price history for each expected life (years) prior to each vesting date or fiscal year end date. Closing prices provided by S&P Capital IQ are adjusted for dividends and splits.

e.

Represents annual dividend yield on each vesting date or fiscal year end date.

Compensation Actually Paid vs. Net Income [Text Block]

CAP and Company Net Income

CAP vs. Net Income

Tabular List [Table Text Block]

Tabular List of Financial Performance Measures

In our assessment, the most important financial performance measures used to link CAP (as calculated in accordance with the SEC rules), to our PEO and Non-PEO NEOs in 2022 to our performance were:

•

Revenue; and

•

Adjusted EBITDA.