What Happened?

Shares of pharmaceutical company Amneal Pharmaceuticals (NASDAQ: AMRX) jumped 8.9% in the afternoon session after the company reported strong third-quarter financial results that surpassed expectations and raised its full-year forecast. 

The pharmaceutical company posted adjusted earnings of $0.17 per share for the quarter, beating analyst estimates. Revenue also topped forecasts, reaching $785 million, which represented a 12% increase compared to the same period in the prior year. Bolstered by these results, Amneal provided an improved outlook for the full year. The company revised its projections for net revenue to a range between $3.0 billion and $3.1 billion and lifted its forecast for adjusted earnings per share to between $0.75 and $0.80.

Is now the time to buy Amneal? Access our full analysis report here.

What Is The Market Telling Us

Amneal’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 2 months ago when the stock gained 4.7% on the news that the company announced it received U.S. Food and Drug Administration (FDA) approval for its generic narcolepsy drug, sodium oxybate oral solution. The approved drug is an Abbreviated New Drug Application (ANDA) that references Jazz Pharmaceuticals' brand-name drug, Xyrem®. Sodium oxybate is a central nervous system depressant used to treat cataplexy or excessive daytime sleepiness in patients with narcolepsy. Amneal had previously distributed an authorized generic version of the drug in limited quantities. This full approval allows the company to provide a more affordable alternative for the approximately 150,000 individuals in the U.S. with the rare neurological condition, potentially expanding its market presence in a therapeutic area historically dominated by a single manufacturer.

Amneal is up 39.6% since the beginning of the year, and at $10.84 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amneal’s shares 5 years ago would now be looking at an investment worth $2,424.

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