Amphastar Pharmaceuticals(US:AMPH)2025-05-08 20:24Financial Performance - Total net revenues for the three months ended March 31, 2025, were $170,528,000, a decrease of 1% compared to $171,836,000 for the same period in 2024[146]. - Product revenues increased by 8% to $170,528,000, driven primarily by a 177% increase in BAQSIMI® sales, which reached $38,355,000[146][147]. - Gross profit for the three months ended March 31, 2025, was $85,251,000, representing a gross margin of 50%, down from 52% in the prior year[146][152]. - Net income for Q1 2025 was $25.3 million, compared to $43.2 million in Q1 2024, reflecting a decrease of 41.5%[167][169]. Expenses - Research and development expenses increased by 18% to $20,096,000, primarily due to higher salaries, clinical trial costs, and FDA fees[156][157]. - Selling, distribution, and marketing expenses rose by 27% to $11,866,000, reflecting expanded sales and marketing efforts for BAQSIMI® and Primatene MIST®[154]. - The company expects research and development expenses to continue increasing annually due to ongoing clinical trials for insulin and inhalation product candidates[158]. Cash Flow - Net cash provided by operating activities for Q1 2025 was $35.1 million, down 36.5% from $55.3 million in Q1 2024[167][169]. - Net cash outflow from changes in operating assets and liabilities was $16.7 million in Q1 2025, primarily due to increases in accounts receivables and inventories[168]. - Net cash provided by investing activities was $10.5 million in Q1 2025, down 30.5% from $15.2 million in Q1 2024[170][171]. - Net cash used in financing activities was $14.5 million in Q1 2025, compared to $13.6 million in Q1 2024, reflecting an increase of 6.6%[172][173]. Working Capital and Future Requirements - Working capital increased by $28.6 million to $388.9 million as of March 31, 2025, compared to $360.3 million at December 31, 2024[164]. - The company anticipates significant cash requirements for future milestones related to the BAQSIMI® acquisition, totaling up to $575 million[162]. Compliance and Risks - As of March 31, 2025, all manufacturing facilities and CMOs were in compliance with FDA and DEA regulations, following inspections with no observations[179]. - The company is exposed to market risks including investment risk, interest rate risk, and foreign currency exchange risk, with no material changes reported since the last annual report[181]. Other Financial Metrics - Non-cash items in Q1 2025 included $16.0 million in depreciation and amortization, with share-based compensation expense of $8.4 million[167]. - The increase in accounts receivables in Q1 2025 was primarily due to the timing of sales, while inventory increases were linked to purchases for BAQSIMI®[168]. - The effective tax rate increased to 18% for the three months ended March 31, 2025, compared to 9% in the same period of 2024[161]. - The company incurred $10.7 million in purchases of property, plant, and equipment in Q1 2025, with significant investments in the United States, France, and China[170].