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Amphastar Pharmaceuticals (AMPH)
NASDAQ:AMPH
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Amphastar Pharmaceuticals
(NASDAQ:AMPH)
69Neutral
Positive Factors
Market Strategy
Amphastar expects to remain the only pre-filled syringe on the market despite increased competition.
Product Growth
Baqsimi, a brand asset with higher margins than corporate margins, shows growth potential, which could help mitigate pressures from other product lines.
Valuation
AMPH shares, which have been under pressure (down ~38% since early-Nov) as investors anticipated the impact of increased competitive pressures, are approaching attractive valuation levels for entry.
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.
Earnings Performance
AMPH's 4Q24 top-line and bottom-line both came short of Street expectations, due to competitive pressures on glucagon, epinephrine and hospital products.
Regulatory Challenges
The stock has been weak YTD (-28% vs. DRG +5%) as regulatory actions have pushed out potential launches.
Amphastar Pharmaceuticals (AMPH) vs. S&P 500 (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)660.93K
Price to Earnings (P/E)9.3
Beta (1Y)0.78
Revenue Growth13.59%
EPS Growth15.72%
CountryUS
Employees2,028
SectorHealthcare
Sector Strength71
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)3.06
Shares Outstanding47,650,120
10 Day Avg. Volume614,105
30 Day Avg. Volume660,932
Financial Highlights & Ratios
PEG Ratio0.59
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
$38.25Price Target Upside34.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Amphastar Pharmaceuticals Business Overview & Revenue Model
Company DescriptionAmphastar Pharmaceuticals, Inc. is a biopharmaceutical company that specializes in the development, manufacture, and marketing of generic and proprietary injectable and inhalation products. Headquartered in Rancho Cucamonga, California, the company operates in the pharmaceutical sector, focusing on therapeutic areas such as endocrinology, critical care, and anesthesia. Amphastar also provides active pharmaceutical ingredients (APIs) for a variety of products, enhancing its portfolio with both generic and specialty pharmaceutical solutions.
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
28.43
Price Trends
31.17
Negative
36.88
Negative
40.74
Negative
Market Momentum
-0.77
Negative
43.73
Neutral
81.52
Negative
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 28.43 is above the 20-day moving average (MA) of 27.83, below the 50-day MA of 31.17, and below the 200-day MA of 40.74, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.52 is Negative, 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 (49)
Financial Indicators
Performance Comparison
AMPH
Amphastar Pharmaceuticals
28.43
-15.01
-34.55%
PCRX
Pacira Pharmaceuticals
24.91
-4.24
-14.55%
ANIP
ANI Pharmaceuticals
67.61
-0.26
-0.38%
Amphastar Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.72% | 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.