Amphastar 2025 Q3 Earnings Beats Estimates with $44.7M Adjusted Net Income

Amphastar Pharmaceuticals (NASDAQ:AMPH) delivered mixed results in Q3 2025, with revenue up slightly and adjusted earnings surpassing estimates. The company reported net revenues of $191.8 million, beating Wall Street’s $184.5 million forecast, though GAAP net income fell 57.1% year-over-year. Management provided no explicit guidance for future periods but emphasized growth from recent product launches and strategic partnerships.

Revenue

Amphastar’s Q3 revenue totaled $191.84 million, a 0.3% year-over-year increase, driven by strong performance in key segments. BAQSIMI® sales surged 14% due to expanded U.S. marketing efforts, while Primatene MIST® revenue rose 11% from higher unit volumes. However, Epinephrine, Glucagon, and Lidocaine segments faced headwinds from pricing pressures and competition, offsetting some gains. The recent launch of iron sucrose injection contributed $2.4 million to the quarter’s revenue, marking a strategic expansion in generic therapies.

Earnings/Net Income

GAAP net income declined to $17.35 million in Q3 2025, a 57.1% drop from $40.43 million in the prior-year period, while adjusted non-GAAP net income stood at $44.7 million ($0.93 EPS), exceeding estimates by 12.7%. The divergence between GAAP and adjusted metrics reflects significant non-recurring expenses, including a $23.1 million litigation provision and $5.3 million in upfront licensing costs. Despite the GAAP decline, the adjusted figures highlight the company’s core operational strength and cost management.

Post-Earnings Price Action Review

The strategy of buying Amphastar shares on the day of its quarterly earnings release and holding for 30 days has historically yielded cumulative returns of 31.8% over the past three years, translating to an average annual return of 10%. This performance outpaces market volatility and sector-specific challenges, suggesting investor confidence in the company’s ability to navigate pharmaceutical industry dynamics.

CEO Commentary

Dr. Jack Zhang, President and CEO, underscored double-digit BAQSIMI® growth and the successful FDA approval of iron sucrose injection as key drivers of Q3 performance. He also highlighted the exclusive licensing agreement with Nanjing Anji Biotechnology for novel peptides targeting oncology and ophthalmology, positioning Amphastar to expand its proprietary pipeline. Zhang expressed optimism about leveraging domestic manufacturing expertise and strategic partnerships to enhance long-term value creation.

Guidance

Amphastar expects continued growth from BAQSIMI® demand, new product launches like iron sucrose injection, and pipeline advancements. The company emphasized its commitment to cost control amid pricing pressures but did not provide explicit forward-looking financial targets beyond the Q3 results: GAAP net income of $17.4M (EPS $0.37) and adjusted non-GAAP net income of $44.7M (EPS $0.93).

Additional News

Amphastar recently secured FDA approval for iron sucrose injection, a critical generic product expanding patient access to affordable therapies. The company also inked an exclusive licensing deal with Nanjing Anji Biotechnology to develop three novel peptides for oncology and ophthalmology, bolstering its proprietary pipeline. Analysts at Zacks assigned the stock a #3 (Hold) rating, citing mixed earnings estimate revisions and a 27.7% price target premium. These developments underscore Amphastar’s focus on innovation and strategic partnerships to drive long-term growth.

The stock has underperformed the S&P 500 this year, down 31.8% versus the benchmark’s 15.6% gain, but recent earnings beats and product launches have sparked investor interest. Analysts remain cautiously optimistic, balancing near-term challenges with the company’s long-term growth potential in high-margin therapeutic areas.