Amphastar Pharmaceuticals (AMPH) AI Stock Analysis

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Amphastar Pharmaceuticals

(NASDAQ:AMPH)

Rating:70Outperform

Price Target:

$26.00

▲(1.84%Upside)

Amphastar Pharmaceuticals scores a 70, reflecting strong financial performance and potential value at its current valuation. However, recent earnings call insights highlight challenges from increased competition and financial pressures. Technical analysis indicates bearish momentum, suggesting cautious optimism for future performance.

Positive Factors

Growth Outlook

Positive developments in Baqsimi and Primatene Mist are delivering better than expected growth, bolstering long-term growth prospects.

Market Position

Amphastar expects to maintain its unique position as the only pre-filled syringe on the market, even amidst rising competition.

Negative Factors

Erosion of Generics

Both glucagon and epinephrine are eroding faster than anticipated, with analysts forecasting below consensus for 2025/2026.

Financial Performance

Amphastar reported a top-line figure that fell short of expectations due to competitive pressures, impacting financial performance.

Pipeline Setbacks

The company has faced continued setbacks on the pipeline front, with recent CRLs on AMP-007 and AMP-018 impacting plans to offset erosion in the generic portfolio.

Amphastar Pharmaceuticals (AMPH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.20B

Dividend YieldN/A

Average Volume (3M)545.96K

Price to Earnings (P/E)9.3

Beta (1Y)0.66

Revenue Growth8.05%

EPS Growth-8.46%

CountryUS

Employees2,028

SectorHealthcare

Sector Strength40

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)0.74

Shares Outstanding47,139,084

10 Day Avg. Volume485,731

30 Day Avg. Volume545,964

Financial Highlights & Ratios

PEG Ratio6.97

Price to Book (P/B)1.86

Price to Sales (P/S)0.00

P/FCF Ratio7.86

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$31.50

Price Target Upside23.38% Upside

Rating ConsensusHold

Number of Analyst Covering5

Amphastar Pharmaceuticals Business Overview & Revenue Model

Company DescriptionAmphastar Pharmaceuticals, Inc., a bio-pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. The company operates through two segments, Finished Pharmaceutical Products and API. It offers Primatene Mist, an over-the-counter epinephrine inhalation product for the temporary relief of mild symptoms of intermittent asthma; Enoxaparin, a low molecular weight heparin to prevent and treat deep vein thrombosis; Naloxone for opioid overdose; Glucagon for injection emergency kit; and Cortrosyn, a lyophilized powder for use as a diagnostic agent in the screening of patients with adrenocortical insufficiency. The company also provides Amphadase, a bovine-sourced hyaluronidase injection to absorb and disperse other injected drugs; Epinephrine injection for the emergency treatment of allergic reactions; lidocaine jelly, an anesthetic product for urological procedures; lidocaine topical solution for various procedures; phytonadione injection, a vitamin K1 injection for newborn babies; emergency syringe products for emergency use in hospital settings; morphine injection for use with patient controlled analgesia pumps; and lorazepam injection for surgery and medical procedures. In addition, it offers neostigmine methylsulfate injection to treat myasthenia gravis and to reverse the effects of muscle relaxants; and Isoproterenol hydrochloride injection for mild or transient episodes of heart block. Further, the company distributes recombinant human insulin active pharmaceutical ingredients (API) and porcine insulin API. It serves hospitals, care facilities, alternate care sites, clinics, and doctors' offices. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.

How the Company Makes MoneyAmphastar Pharmaceuticals generates revenue primarily through the sale of its generic and proprietary injectable and inhalation products. The company's key revenue streams include the commercialization of its pharmaceutical products to hospitals, retail pharmacies, and wholesalers. Amphastar's product portfolio encompasses a wide range of therapeutic areas, enabling it to serve diverse market needs. Additionally, the company earns income from its active pharmaceutical ingredients (APIs) business, supplying these essential components to other pharmaceutical companies. Strategic partnerships and a strong focus on research and development also play a crucial role in supporting the company's financial performance, allowing Amphastar to expand its product offerings and maintain its competitive edge in the market.

Amphastar Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 4.50%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Neutral

The earnings call revealed a mixed performance with notable achievements in product sales growth and strategic partnerships, but also significant challenges in revenue decline and increased competition affecting key products like Glucagon and Epinephrine. Operational efficiency measures and pipeline progress provide optimism for the future, but current financial pressures and competition present ongoing challenges.

Q1-2025 Updates

Positive Updates

Drug Shortage Assistance Award

Amphastar received the Drug Shortage Assistance Award from the USFDA for its efforts in preventing critical drug shortages.

BAQSIMI Sales Growth

BAQSIMI sales grew 177% to $38.4 million compared to $13.8 million in the prior year period, reflecting Amphastar's full control over distribution.

Primatene MIST Sales Increase

Sales of Primatene MIST increased by 20% to $29 million, attributed to increased unit volumes and demand.

Pipeline Progress

The FDA accepted a Biologics License Application for AMP-004, with a BsUFA goal date in Q1 2026, marking a milestone in expanding biosimilar insulin offerings.

Operational Efficiency Measures

Amphastar is implementing cost-efficient strategies to combat margin pressures and enhance operational effectiveness.

Negative Updates

Net Revenue Decline

Net revenues declined by 1% to $170.5 million compared to the same period last year due to increased competition in key product areas.

Glucagon and Epinephrine Sales Decline

Glucagon injection sales declined 27% and Epinephrine sales decreased 29% due to increased competition.

Gross Margin Reduction

Gross margins declined to 50% from 52.4% in the previous year, primarily due to the transition of BAQSIMI distribution from Lilly to Amphastar and pricing declines for Epinephrine.

Increased Operating Expenses

Selling, distribution, and marketing expenses increased 27%, and research and development expenditures rose 18%.

Net Income Decrease

Net income decreased to $25.3 million or $0.51 per share from $43.2 million or $0.81 per share in the first quarter of 2024.

Company Guidance

During Amphastar Pharmaceuticals' first quarter earnings call for fiscal year 2025, the management provided guidance on several key metrics and strategic initiatives. The company reported net revenues of $170.5 million, marking a 1% decrease from the previous year. BAQSIMI achieved sales of $38.3 million in the first quarter, nearly matching the combined sales of this product by Lilly and Amphastar from the prior year. Primatene MIST sales rose 20% to $29 million, driven by increased unit volumes and expanded physician outreach. Despite competitive pressures leading to a 27% decline in Glucagon injection sales to $20.8 million and a 29% decrease in Epinephrine sales to $18.6 million, Amphastar remains optimistic about its long-term growth prospects. The company continues to focus on expanding its branded product portfolio and anticipates that BAQSIMI and Primatene MIST will drive revenue growth throughout 2025. Furthermore, Amphastar is actively pursuing several pipeline opportunities, with an emphasis on capturing near-term growth through strategic FDA filings and responses. The company is also preparing for potential impacts from tariff policies but believes its U.S.-based manufacturing operations position it favorably.

Amphastar Pharmaceuticals Financial Statement Overview

Summary

Amphastar Pharmaceuticals presents a robust financial profile with strong revenue and profit growth, solid margins, and efficient cash flow management. The company's low leverage and strong equity position provide financial stability, while the impressive growth in free cash flow supports future investments and growth opportunities.

Income Statement

Very Positive

Amphastar Pharmaceuticals has demonstrated strong revenue growth, with a significant increase from $644M in 2023 to $713M in 2024, reflecting an impressive growth trajectory. The gross profit margin for 2024 stands at 52.4%, indicating efficient cost management. The net profit margin improved to 22.4% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins are robust at 28.8%, underlining operational efficiency.

Balance Sheet

Positive

The balance sheet reflects financial stability with a debt-to-equity ratio of 0.07 in 2024, indicating low leverage. The equity ratio is strong at 46.4%, showing a solid equity base. Return on equity (ROE) has improved to 21.8%, highlighting efficient use of equity to generate profits. The company's conservative debt strategy supports financial stability, although further growth in equity could enhance the financial position.

Cash Flow

Very Positive

Amphastar Pharmaceuticals exhibits strong cash flow metrics with a significant growth in free cash flow from $145M in 2023 to $172M in 2024, reflecting a 18.6% growth rate. The operating cash flow to net income ratio is 1.34, signifying efficient cash generation relative to net income. The free cash flow to net income ratio of 1.08 indicates effective conversion of earnings to cash, supporting sustainability and potential for reinvestment.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
712.81M	644.39M	498.99M	437.77M	349.85M
	Gross Profit
373.86M	351.12M	248.86M	199.74M	143.34M
	EBIT
205.42M	196.99M	78.76M	43.13M	-14.23M
	EBITDA
277.31M	240.29M	107.50M	111.78M	30.19M
	Net Income Common Stockholders
159.52M	137.54M	91.39M	62.12M	1.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.65M	256.81M	175.76M	136.67M	105.62M
	Total Assets
1.58B	1.51B	741.99M	671.53M	631.24M
	Total Debt
48.92M	623.64M	102.58M	104.66M	67.27M
	Net Debt
-102.69M	479.35M	-53.52M	-21.69M	-25.37M
	Total Liabilities
845.17M	873.49M	213.33M	226.01M	182.51M
	Stockholders Equity
732.30M	639.42M	528.66M	445.52M	402.31M
Cash Flow		Free Cash Flow
172.34M	145.34M	65.15M	70.54M	23.41M
	Operating Cash Flow
213.39M	183.50M	89.18M	97.99M	57.27M
	Investing Cash Flow
-124.93M	-649.12M	-32.78M	-28.67M	-36.41M
	Financing Cash Flow
-80.95M	454.09M	-26.44M	-37.02M	-2.25M

Amphastar Pharmaceuticals Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price25.53

Price Trends

50DMA

25.36

Positive

100DMA

29.11

Negative

200DMA

37.66

Negative

Market Momentum

MACD

-0.11

Negative

RSI

56.11

Neutral

STOCH

67.91

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPH, the sentiment is Neutral. The current price of 25.53 is above the 20-day moving average (MA) of 24.42, above the 50-day MA of 25.36, and below the 200-day MA of 37.66, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMPH.

Amphastar Pharmaceuticals Risk Analysis

Amphastar Pharmaceuticals disclosed 85 risk factors in its most recent earnings report. Amphastar Pharmaceuticals reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

We may engage in acquisitions or strategic partnerships that could disrupt our business, cause dilution to our stockholders, reduce our financial resources, cause or to incur debt or assume contingent liabilities, and subject us to other risks. Q4, 2024

Amphastar Pharmaceuticals Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	70 Outperform	$1.20B	9.27	19.90%	―	8.05%	-8.46%
PCRX	63 Neutral	$1.20B	―	-12.27%	―	3.08%	-247.82%
SDGR	54 Neutral	$1.57B	―	-43.33%	―	22.29%	-32.89%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
CLDX	50 Neutral	$1.35B	―	-23.20%	―	24.49%	5.14%
WVE	47 Neutral	$917.10M	―	-105.50%	―	-7.06%	-57.17%
DYN	43 Neutral	$1.33B	―	-64.01%	―	―	14.93%

* Healthcare Sector Average

Performance Comparison

AMPH

Amphastar Pharmaceuticals

25.53

-16.45

-39.19%

CLDX

Celldex

19.78

-15.60

-44.09%

PCRX

Pacira Pharmaceuticals

25.82

-4.23

-14.08%

WVE

Wave Life Sciences

5.94

-0.20

-3.26%

SDGR

Schrodinger

21.50

-0.61

-2.76%

DYN

Dyne Therapeutics

11.70

-18.31

-61.01%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.