Investors in Amphastar Pharmaceuticals, Inc. (AMPH) need to pay close attention to the stock based on moves in the options market lately. That is because the June 20, 2025 $65 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. ...

Financial Position - As of December 31, 2024, the company had $6.7 million deposited in six banks located in China, $1.8 million in France, and $0.7 million in the United Kingdom, with total cash equivalents of $102.1 million[604]. - The company maintained approximately $54.4 million in investment-grade corporate and municipal bonds as of December 31, 2024[604]. - As of December 31, 2023, the company had $5.9 million in China, $5.0 million in France, and $0.3 million in the United Kingdom, with total cash equivalents of $116.4 million[605]. - The company maintained approximately $90.1 million in investment-grade corporate and municipal bonds as of December 31, 2023[605]. - As of December 31, 2024, the company had $601.9 million in long-term debt and finance leases, an increase from $590.0 million in 2023[608]. - The company's cash and cash equivalents increased to $151.6 million in 2024 from $144.3 million in 2023[635]. - Total current assets rose to $534.1 million in 2024, compared to $489.6 million in 2023, reflecting a growth of approximately 9.1%[635]. - The total liabilities decreased to $845.2 million in 2024 from $873.5 million in 2023, showing a reduction of approximately 3.2%[635]. - The company's total assets increased to $1.577 billion in 2024, up from $1.513 billion in 2023, marking a growth of approximately 4.2%[635]. - The company reported total equity of $732.3 million in 2024, an increase from $639.4 million in 2023, reflecting a growth of approximately 14.5%[635]. Revenue and Profitability - Total net revenues for 2024 reached $731,967,000, a 13.6% increase from $644,395,000 in 2023[636]. - Product revenues, net increased to $712,814,000, up 20.2% from $593,238,000 in 2023[636]. - Gross profit for 2024 was $373,855,000, compared to $351,121,000 in 2023, reflecting a gross margin improvement[636]. - Operating expenses totaled $168,436,000 in 2024, an increase of 9.3% from $154,134,000 in 2023[636]. - Net income for 2024 was $159,519,000, representing a 15.9% increase from $137,545,000 in 2023[637]. - Basic net income per share rose to $3.29 in 2024, compared to $2.85 in 2023, marking a 15.4% increase[636]. - Total comprehensive income for 2024 was $158,816,000, compared to $137,691,000 in 2023[637]. Expenses and Liabilities - The company incurred $129,000,000 for the acquisition of BAQSIMI® in 2024[642]. - The provision for chargebacks estimate totaled $26.3 million as of December 31, 2024, indicating the company's ongoing management of sales returns[624]. - The provision for chargebacks and rebates increased to $289.3 million in 2024 from $257.2 million in 2023, resulting in an ending balance of $60.3 million for 2024[700]. - The company recorded total expenses under its self-insured claims program of approximately $2.0 million, $1.7 million, and $0.3 million for the years ended December 31, 2024, 2023, and 2022, respectively[678]. - The company has a self-insured claims liability of $5.2 million and $4.3 million at December 31, 2024, and 2023, respectively[678]. - Total accounts payable and accrued liabilities increased to $157.1 million in 2024 from $93.4 million in 2023, representing a 68% increase[745]. - Total debt rose to $614.0 million in 2024, up from $603.8 million in 2023, reflecting a 2% increase[746]. Acquisitions and Investments - The company completed the acquisition of BAQSIMI® for a total purchase price of $628.1 million, including a cash payment of $500.0 million and additional contingent payments based on sales milestones[684][688]. - The company entered into a $700.0 million syndicated credit agreement to finance the BAQSIMI® acquisition, which includes a $500.0 million term loan and a $200.0 million revolving credit facility[694][696]. - The company amortizes the acquired BAQSIMI® product rights over an estimated useful life of 24 years[688]. - The company issued $345.0 million in 2029 Convertible Notes in September 2023, using $200.0 million to repay borrowings under the Wells Fargo Term Loan[747]. Taxation - Changes in tax laws, such as the Inflation Reduction Act of 2022, could impose a 1% excise tax on stock repurchases and a 15% alternative minimum tax on adjusted financial statement income, affecting the company's financial position[472]. - The company is subject to income taxes in many foreign jurisdictions, which may require significant judgment in determining worldwide provisions for income taxes[473]. - The current provision for income taxes in 2024 was $46.814 million, compared to $45.690 million in 2023, reflecting an increase of 2.5%[775]. - The Company's effective tax rate for 2024 decreased to 15.6% from 18.6% in 2023, primarily due to excess tax benefits from share-based compensation[776]. Risks and Compliance - The company's operating results may fluctuate significantly due to various factors, including the commercial success of key products and results of clinical trials[478]. - A significant percentage of the company's operating expenses are fixed, making it difficult to mitigate negative impacts from revenue shortfalls in the short term[481]. - The company may face substantial costs and management diversion due to potential securities class action litigation following stock price volatility[484]. - Compliance with public company regulations imposes significant legal and financial costs, potentially diverting management's attention from business operations[485]. - The company faces supplier concentration risks, as it relies on a limited number of sources for raw materials, which could adversely affect operations if not managed properly[723]. Currency and Foreign Operations - A theoretical 10% unfavorable change in foreign currency exchange rates would result in a reduction of approximately $1.2 million in foreign currency gains for 2024[614]. - The company reported a foreign currency translation adjustment loss of $695,000 in 2024[637]. - The Company reported a foreign income loss of $5.414 million in 2024, an improvement from a loss of $10.563 million in 2023[774].

On Thursday, Amphastar Pharmaceuticals Inc. AMPH reported fourth-quarter adjusted EPS of 92 cents, up from 88 cents a year ago, but missing the consensus of 94 cents.Amphastar is a biopharmaceutical company focusing primarily on developing, manufacturing, marketing, and selling generic and proprietary injectable, inhalation, and intranasal products.The company reported sales of $186.5 million, up 20% year over year, missing the consensus of $188.81 million.Jack Zhang, Amphastar’s President and Chief Executi ...

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]

Amphastar Pharmaceuticals (AMPH) Q4 2024 Earnings Call February 28, 2025 12:12 AM ET Company Participants Dan Dischner - Senior Vice President of Human Resources & Corporate CommunicationBill Peters - CFO, Treasurer, EVP - Finance & President of IMS, Ltd., & DirectorJason Gerberry - MD & Equity ResearchCerena Chen - VP - Biotech and Pharma Equity ResearchTony Marrs - Executive VP of Regulatory Affairs & Clinical Operations Conference Call Participants Ekaterina Knyazkova - AnalystDavid Amsellem - Sr. Resear ...

Amphastar Pharmaceuticals (AMPH) reported $186.52 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 4.7%. EPS of $0.92 for the same period compares to $0.88 a year ago.The reported revenue represents a surprise of -1.08% over the Zacks Consensus Estimate of $188.55 million. With the consensus EPS estimate being $0.96, the EPS surprise was -4.17%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...

Core Viewpoint - Amphastar Pharmaceuticals reported quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $0.96 per share, representing an earnings surprise of -4.17% [1] - The company posted revenues of $186.52 million for the quarter, which also fell short of the Zacks Consensus Estimate by 1.08% [2] Financial Performance - Earnings per share (EPS) for the same quarter last year was $0.88, indicating a year-over-year increase [1] - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - Revenue for the previous year was $178.11 million, showing growth in revenue year-over-year [2] Market Performance - Amphastar shares have declined approximately 15.9% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Amphastar is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $176.16 million, while the estimate for the current fiscal year is $3.50 on revenues of $746.67 million [7] - The trend of estimate revisions for Amphastar is currently unfavorable, which could impact future stock performance [6] Industry Context - The Medical - Generic Drugs industry is ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8]

Financial Performance - Net revenues for Q4 2024 were $186.5 million, a 5% increase from $178.1 million in Q4 2023[3] - GAAP net income for Q4 2024 was $38.0 million, or $0.74 per share, compared to $36.2 million, or $0.68 per share in Q4 2023[3] - Adjusted non-GAAP net income for Q4 2024 was $47.2 million, or $0.92 per share, up from $46.9 million, or $0.88 per share in Q4 2023[3] - Full year net revenues reached $732.0 million, a 14% increase from $644.4 million in 2023[11] - Full year GAAP net income was $159.5 million, or $3.06 per share, compared to $137.5 million, or $2.60 per share in 2023[3] - Total net revenues for the year ended December 31, 2024, increased to $731.967 million, up from $644.395 million in 2023, representing a growth of 13.6%[29] - Product revenues, net for the year ended December 31, 2024, were $712.814 million, compared to $593.238 million in 2023, reflecting a 20.2% increase[29] - The company reported a net income of $159.519 million for the year ended December 31, 2024, compared to $137.545 million in 2023, marking a 15.9% increase[29] Sales Performance - BAQSIMI® sales for the year totaled $126.9 million, with a strong growth in factory sales of 12% in Q4 compared to the previous year[2] - Primatene MIST® achieved over $100 million in annual sales for 2024, exceeding the company's long-term goal[2] - Total product revenues for the year increased by 20% to $712.8 million from $593.2 million in 2023[10] Expenses - Research and development expenses decreased by 11% to $18.1 million in Q4 2024 compared to $20.4 million in Q4 2023[7] - Selling, distribution, and marketing expenses increased by 31% to $37.8 million for the year, reflecting expanded efforts related to BAQSIMI®[13] - Selling, general, and administrative expenses for the year ended December 31, 2024 were $56,720,000, compared to $51,540,000 in 2023, indicating an increase of 10.83%[34] - Research and development expenses for the year ended December 31, 2024 totaled $73,914,000, up from $73,741,000 in 2023, a slight increase of 0.23%[34] - The total cost of revenue for Q4 2024 was $99,875,000, compared to $81,965,000 in Q4 2023, representing a 21.77% increase[33] - The company incurred $3,651,000 in expenses related to the BAQSIMI® acquisition for the year ended December 31, 2024[34] Cash Flow and Income - Cash flow provided by operating activities for the year ended December 31, 2024, was $213.4 million[15] - Interest income for the year ended December 31, 2024, was $10.612 million, a significant increase of 94% from $5.459 million in 2023[29] - Interest expense increased to $30.343 million in 2024, up 12% from $27.158 million in 2023, primarily due to the Term Loan for the acquisition of BAQSIMI®[29][20] - The company reported a non-operating income of $8,536,000 for Q4 2024, compared to a non-operating income of $7,656,000 in Q4 2023, reflecting an increase of 11.48%[33] - The income tax provision on pre-tax adjustments for the year ended December 31, 2024 was $11,450,000, compared to $10,708,000 in 2023, an increase of 6.93%[34] Assets and Liabilities - Total assets as of December 31, 2024, were $1.577 billion, an increase from $1.512 billion in 2023[30] - The company’s total liabilities decreased to $845.172 million in 2024 from $873.491 million in 2023[30] Development and Future Prospects - The company has four abbreviated new drug applications (ANDAs) filed with the FDA targeting products with a market size exceeding $2 billion, and four biosimilar products in development targeting products with a market size exceeding $7 billion[16]

Group 1 - The investing style described is termed "Fundamental Options," which combines fundamental analysis with options strategies [1] - The investment strategies include income-oriented investments, particularly in Business Development Companies (BDCs) and Utilities, as well as growth investments in technology stocks [1] - The analyst employs various valuation methods such as Discounted Cash Flow for deep value investments and focuses on Dividend Aristocrats [1] Group 2 - The analyst has developed 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] - Teaching and coaching in investing is a passion for the analyst, who has authored a free local investing newsletter [1]

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