Amphastar Pharmaceuticals (AMPH) AI Stock Analysis

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Amphastar Pharmaceuticals

(NASDAQ:AMPH)

70Outperform

Amphastar Pharmaceuticals' overall score is bolstered by strong financial performance and an undervalued valuation, indicating a solid base for future growth. Technical analysis suggests caution due to bearish trends and oversold conditions. Earnings call insights highlight strategic strengths but also reveal challenges like declining margins and competitive pressures. The company's ability to navigate these challenges while capitalizing on growth opportunities will be crucial for future performance.

Positive Factors

Market Position

Amphastar expects to remain the only pre-filled syringe on the market despite increased competition.

Pipeline Opportunities

AMP-007 & AMP-002 are viewed as the 2 biggest opportunities in its pipeline, with significant market potential.

Sales Force Expansion

Their Mannkind collaboration more than doubles the sales force and brings experience in the endocrinology space.

Negative Factors

Competitive Pressures

Recent competitive headwinds are affecting key products like injectable glucagon and injectable epinephrine, potentially pressuring Amphastar's top-line and EBITDA.

Regulatory Challenges

The stock has been weak YTD (-28% vs. DRG +5%) as regulatory actions have pushed out potential launches.

Supply Chain Issues

Baqsimi supply issues limited EU sales by $2MM-$3MM during the quarter.

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

Market Cap

$1.11B

Dividend YieldN/A

Average Volume (3M)676.79K

Price to Earnings (P/E)7.6

Beta (1Y)0.61

Revenue Growth13.59%

EPS Growth15.72%

CountryUS

Employees2,028

SectorHealthcare

Sector Strength66

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)3.06

Shares Outstanding47,502,193

10 Day Avg. Volume824,050

30 Day Avg. Volume676,792

Financial Highlights & Ratios

PEG Ratio0.48

Price to Book (P/B)N/A

Price to Sales (P/S)1.86

Price to Cash Flow (P/CF)5.60

P/FCF Ratio7.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$37.00

Price Target Upside57.45% Upside

Rating ConsensusModerate Buy

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 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

Negative

Last Price23.50

Price Trends

50DMA

28.12

Negative

100DMA

33.58

Negative

200DMA

39.62

Negative

Market Momentum

MACD

-1.53

Positive

RSI

33.93

Neutral

STOCH

19.33

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMPH, the sentiment is Negative. The current price of 23.5 is below the 20-day moving average (MA) of 26.02, below the 50-day MA of 28.12, and below the 200-day MA of 39.62, indicating a bearish trend. The MACD of -1.53 indicates Positive momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 19.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks

Amphastar Pharmaceuticals Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	70 Outperform	$1.11B	7.62	23.26%	―	13.59%	15.72%
PCRX	65 Neutral	$1.20B	―	-12.08%	―	3.85%	-339.15%
WVE	51 Neutral	$908.64M	―	-73.24%	―	-4.42%	-42.17%
Sector *	50 Neutral	$5.14B	3.10	-40.94%	2.95%	17.94%	2.00%
SDGR	50 Neutral	$1.88B	―	-38.58%	―	-4.21%	-544.81%
CLDX	47 Neutral	$1.26B	―	-26.84%	―	1.99%	15.95%
DYN	44 Neutral	$1.06B	―	-88.03%	―	―	14.93%

* Healthcare Sector Average

Performance Comparison

AMPH

Amphastar Pharmaceuticals

23.50

-17.41

-42.56%

CLDX

Celldex

18.94

-18.83

-49.85%

PCRX

Pacira Pharmaceuticals

25.90

-0.91

-3.39%

WVE

Wave Life Sciences

6.12

1.04

20.47%

SDGR

Schrodinger

26.19

1.38

5.56%

DYN

Dyne Therapeutics

9.33

-16.11

-63.33%

Amphastar Pharmaceuticals Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -25.37% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant revenue growth and strategic partnerships, especially for key products such as Primatene MIST and BAQSIMI. However, challenges such as decreasing glucagon sales, reduced gross margins, and increased competition were notable. The sentiment is balanced with optimism in pipeline developments countered by competitive and margin pressures.

Highlights

Strong Revenue Growth

Achieved revenues of $732 million for fiscal year 2024, a 14% increase compared to the prior year. Fourth quarter revenue was $186 million, marking a 5% year-over-year growth.

Primatene MIST Sales Milestone

Primatene MIST reached annual sales of $102 million, representing a 14% increase from 2023, surpassing the $100 million goal set three years ago.

Strategic Partnership with MannKind

A new strategic partnership with MannKind to promote BAQSIMI, expanding sales reach and strengthening position in the diabetes care market.

Pipeline and Regulatory Developments

Optimistic about the potential approval of 4 key products in 2025, including AMP-002, AMP-007, AMP-015, and AMP-018, marking progress in the regulatory pipeline.

Lowlights

Glucagon Sales Decline

Annual glucagon sales declined by 5% due to increasing competitive pressures. The market is shifting towards ready-to-use products like BAQSIMI.

Decreased Gross Margins

Gross margins decreased to 46.5% in Q4 2024 from 54% in Q4 2023, primarily due to BAQSIMI sales recorded net of Lilly's expenses and higher labor and component costs.

Increased Competition Impact

Epinephrine sales decreased due to increased competition, and hospital and clinic use products faced heightened competitive pressures.

Delayed Product Approvals

AMP-002 faced a delay in its GDUFA date since Q2 2023, and AMP-004 (insulin aspart) approval is unlikely until late 2025.

Company Guidance

During Amphastar Pharmaceuticals' fourth quarter earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic initiatives. The company reported 2024 revenues of $732 million, reflecting a 14% increase from the prior year, with fourth-quarter sales reaching $186 million, a 5% year-over-year growth. Primatene MIST, a cornerstone product, achieved $102 million in sales, up 14% from 2023. Amphastar anticipates high single-digit growth for Primatene MIST in 2025, supported by an expanded physician sampling program. Meanwhile, BAQSIMI, integrated into their diabetes franchise, saw sales grow by 12% at the factory level, contributing $41.8 million to net product sales, and is expected to see high single-digit unit growth following a 3% price increase. The collaboration with MannKind is set to enhance BAQSIMI's market reach. However, glucagon sales declined by 5% to $108 million due to competitive pressures, with further declines expected. The company remains optimistic about launching two new products from their pipeline in 2025, with four key products under regulatory review, including AMP-002, AMP-007, AMP-015, and AMP-018. Amphastar projects flat sales for 2025, with a return to double-digit growth in 2026, as the company navigates pricing pressures and competition. Gross margins are expected to decrease due to changes in sales dynamics and increased costs, while R&D and capital expenditures are set to rise with a focus on expanding their manufacturing capacity and advancing their insulin portfolio.

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.