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Cautious Hold Rating for Amphastar Pharmaceuticals Amid Competitive Pressures and Revenue Challenges

Cautious Hold Rating for Amphastar Pharmaceuticals Amid Competitive Pressures and Revenue Challenges

Needham analyst Serge Belanger has maintained their neutral stance on AMPH stock, giving a Hold rating yesterday.

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Serge Belanger has given his Hold rating due to a combination of factors affecting Amphastar Pharmaceuticals. The company’s recent financial performance showed a decline in revenue, falling short of market expectations, primarily due to increased competition impacting key products such as glucagon and epinephrine. This competitive pressure has also affected other products like enoxaparin, dextrose, and naloxone, contributing to the overall revenue decline.
Despite some positive growth from products like Baqsimi and Primatene Mist, the outlook remains cautious as further competition is anticipated, particularly for glucagon. The company’s ability to maintain its revenue at 2024 levels is heavily reliant on obtaining ANDA approvals. These factors combined suggest a cautious approach, justifying the Hold rating as the company navigates these challenges to stabilize its financial performance.

In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $29.00 price target.

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