Amphastar Pharmaceuticals (NASDAQ:AMPH) Issues Earnings Results

Amphastar Pharmaceuticals (NASDAQ:AMPH) announced its quarterly earnings data on Thursday. The company reported $1.14 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.28, FiscalAI reports. Amphastar Pharmaceuticals had a net margin of 10.76% and a return on equity of 14.98%. The company had revenue of $207.61 million during the quarter, compared to the consensus estimate of $197.52 million.

Here are the key takeaways from Amphastar Pharmaceuticals’ conference call:

• Amphastar reported record third-quarter revenue of $207.6 million, up 8% year over year, and adjusted EPS of $1.14 versus $0.93 a year earlier. BAQSIMI and Primatene MIST both posted record sales, while recently launched products also contributed.
• Mixed Sentiment: BAQSIMI sales rose 10% on higher volume, but pricing remained a headwind, including an estimated $2.2 million impact from rebates and 340B discounts. Management said efforts to reduce duplicate discounts are progressing, though it does not expect pricing to return to prior levels.
• Gross margin fell to 48% from 51%, pressured by lower prices on several products and higher manufacturing costs. IMS remediation added about $2 million to $3 million in quarterly expense, with management expecting somewhat higher costs over the next two or three quarters and continued effects on product releases.
• Management expects fourth-quarter sales to increase in the high single digits year over year, while noting a modest slowdown in IMS sales as remediation continues. Lidocaine demand is expected to remain strong, although production constraints and a growing IMS backlog may limit shipments.
• Amphastar remains on track for a potential 2027 insulin aspart biosimilar launch, but has no firm launch date and expects competition from existing products. The board also authorized an additional $50 million for share repurchases.

Amphastar Pharmaceuticals Stock Performance

AMPH stock traded down $0.36 during midday trading on Thursday, reaching $27.66. 606,450 shares of the company were exchanged, compared to its average volume of 407,211. The company has a debt-to-equity ratio of 0.79, a current ratio of 2.40 and a quick ratio of 1.71. The business has a 50-day moving average price of $25.22 and a two-hundred day moving average price of $22.31. Amphastar Pharmaceuticals has a one year low of $16.65 and a one year high of $29.52. The firm has a market capitalization of $1.18 billion, a price-to-earnings ratio of 11.21, a price-to-earnings-growth ratio of 5.46 and a beta of 0.93.

Insider Activity

In other news, EVP Rong Zhou sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $23.94, for a total transaction of $239,400.00. Following the completion of the sale, the executive vice president owned 169,203 shares in the company, valued at approximately $4,050,719.82. This trade represents a 5.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Richard K. Prins sold 7,973 shares of Amphastar Pharmaceuticals stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $20.30, for a total transaction of $161,851.90. Following the sale, the director directly owned 29,625 shares of the company’s stock, valued at $601,387.50. The trade was a 21.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 33,479 shares of company stock valued at $763,922 over the last ninety days. 29.60% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

AMPH has been the topic of a number of research analyst reports. Piper Sandler dropped their target price on shares of Amphastar Pharmaceuticals from $21.00 to $20.00 and set a “neutral” rating on the stock in a report on Friday, August 7th. Wall Street Zen cut Amphastar Pharmaceuticals from a “strong-buy” rating to a “buy” rating in a report on Sunday. Wells Fargo & Company lifted their price target on Amphastar Pharmaceuticals from $19.00 to $20.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Barclays boosted their price target on Amphastar Pharmaceuticals from $20.00 to $23.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 18th. Finally, Zacks Research upgraded Amphastar Pharmaceuticals from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $22.50.

Amphastar Pharmaceuticals Company Profile

Amphastar Pharmaceuticals, Inc is a biopharmaceutical company that develops, manufactures and markets injectable, inhalation and intranasal products. The company focuses on technically challenging medicines, including complex generics, proprietary products and products based on its drug-delivery technologies.

Its product portfolio includes Primatene MIST, an over-the-counter epinephrine inhaler; Baqsimi, a nasal glucagon product used to treat severe hypoglycemia; and injectable medicines such as glucagon, naloxone, enoxaparin and hyaluronidase.