Amphastar Pharmaceuticals' third quarter results for 2025 came in ahead of Wall Street's revenue and profit expectations, despite essentially flat sales compared to the prior year. The quarter was shaped by strong performances from proprietary products BAQSIMI and Primatene MIST, both of which saw double-digit sales growth. Management attributed this momentum to enhanced commercial execution and expanded marketing partnerships. At the same time, the company faced pronounced margin pressure, primarily due to a sales mix shift, pricing declines, and increased competition in legacy products. CFO William Peters pointed to higher operating costs and a litigation provision that weighed on profitability, noting, “cost control measures were implemented to mitigate the impact of pricing pressures.”
Is now the time to buy AMPH? Find out in our full research report (it’s free for active Edge members).
Amphastar Pharmaceuticals (AMPH) Q3 CY2025 Highlights:
- Revenue: $191.8 million vs analyst estimates of $184.5 million (flat year on year, 4% beat)
- Adjusted EPS: $0.93 vs analyst estimates of $0.83 (12.7% beat)
- Adjusted EBITDA: $68.89 million vs analyst estimates of $59.94 million (35.9% margin, 14.9% beat)
- Operating Margin: 13.2%, down from 29.6% in the same quarter last year
- Market Capitalization: $1.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amphastar Pharmaceuticals’s Q3 Earnings Call
- Serge Belanger (Needham & Co.) pressed CFO William Peters on updated growth expectations, who reaffirmed flat 2025 revenue with double-digit growth targeted for next year, driven by proprietary products.
- Dennis Ding (Jefferies) inquired about AMP-007's regulatory progress and the impact of FDA bandwidth constraints. Executive Vice President Tony Marrs acknowledged slight delays in agency communication but no material impact on product timelines so far.
- Pavan Patel (Bank of America) questioned market share dynamics for iron sucrose and how contracting could improve future run rates. Peters explained Amphastar prioritized profitability over aggressive market share gains and expects current sales levels to continue.
- Ekaterina Knyazkova (JPMorgan) asked about the rationale and expectations for the Nanjing Anji licensing deal. Peters and Senior Vice President Dan Dischner highlighted strategic intent to expand into branded products with encouraging early data.
- David Amsellem (Piper Sandler) probed the competitive outlook for insulin aspart and potential generic competition for Primatene MIST. Peters detailed margin benefits from vertical integration and explained why Primatene MIST’s OTC status and follow-on product development reduce generic risk.
Catalysts in Upcoming Quarters
In the next few quarters, the StockStory team will be tracking (1) progress on proprietary pipeline milestones, including regulatory submissions and clinical data for recently in-licensed oncology and ophthalmology assets, (2) the pace and impact of U.S. manufacturing capacity expansion, and (3) commercial traction of new launches such as iron sucrose injection and updates on BAQSIMI’s market share. Evolving competitive dynamics in legacy products and patent developments for Primatene MIST will also be closely monitored.
Amphastar Pharmaceuticals currently trades at $27.63, up from $24.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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