Amphastar: Earnings Miss, Margins Drop

Core Viewpoint - Amphastar Pharmaceuticals reported modest earnings growth but fell short of market expectations in its latest quarterly results [2] Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 was $0.92, missing the expected $0.94, while total revenue reached $186.52 million, slightly below the projected $188 million [2][3] - Year-over-year, adjusted EPS increased by 4.5% from $0.88 in Q4 2023, and total revenue grew by 4.7% from $178.1 million [3][6] - Net income rose to $47.2 million, reflecting a 0.8% increase from the previous year [3][8] - Gross profit margin declined to 46.5% from 54% a year ago, attributed to higher labor and component costs [3][6] Business Overview - Amphastar specializes in developing complex generic and proprietary drugs, focusing on high-barrier products with fewer competitors [4] - The company targets injectable and inhalation markets, which present significant growth potential, and has a pipeline of over 20 high-barrier product candidates [4][5] - Strategic acquisitions, such as BAQSIMI, enhance the company's portfolio and expand its international reach [4] Product Highlights - Primatene MIST® sales surged by 18% to exceed $100 million annually [7] - Epinephrine sales fell by 24% due to increased competition, while Enoxaparin revenues dropped by 39% amid market shifts [7] - The acquisition of BAQSIMI generated $41.8 million in revenue, although supply disruptions impacted European sales by $2 million to $3 million [7] Strategic Focus - The company is focused on high-margin, complex drug formulations to reduce competition vulnerability, supported by an active pipeline and ongoing R&D [5] - Cost management strategies included reducing R&D expenses and increasing marketing initiatives to support sales force expansion [8] Future Outlook - Management aims to foster growth through its high-barrier product strategy and anticipates robust performance from its pipeline while eyeing global expansion for BAQSIMI [10]