Amphastar Pharmaceuticals Offers Interesting Growth And Income Prospects

Company Overview - Amphastar Pharmaceuticals engages in the production and sale of generic and proprietary drugs, utilizing various administration methods including injectable, inhalation, and intranasal dosings [3] - The company is recognized for its over-the-counter inhalant, Primatene MIST, and is experiencing growth from its acquisition of BAQSIMI, the first nasally administered glucagon treatment for severe hypoglycemia [3] Financial Performance - Amphastar's net revenue has shown consistent growth, increasing from $438 million in 2021 to an estimated $745.6 million in 2023, with a projected rise to $819.4 million in 2024 [7] - Gross profit has also improved significantly, from $200 million in 2021 to an estimated $351 million in 2023, indicating a gross margin increase from 45.6% to 59.2% during the same period [7] - The company reported a diluted EPS growth from $1.25 in 2021 to an estimated $3.93 in 2023, with expectations of $4.32 in 2024 [7] Balance Sheet Strength - Amphastar maintains a solid balance sheet with cash and equivalents totaling $190 million and total assets of $1.5 billion [4] - The current ratio stands at 3.52, indicating good liquidity and flexibility to respond to market changes [5] - The price/book ratio is 3.02, higher than the sector median of 2.42, suggesting a need for monitoring [5] Market Position and Growth Prospects - The company has a strong track record in developing and commercializing new products, which is crucial for its growth [6] - Amphastar's P/E ratio is currently at 11.29, significantly below the sector median of 20.01, indicating potential value for growth investors [7] - Expectations for continued revenue and earnings growth are supported by improving margins and successful product launches [8]