Amphastar Pharmaceuticals, Inc.

Revenue increased 5% year over year to $183.9 million from $174.4 million. GAAP net income was $30.3 million, or $0.67 per share, versus $31 million, or $0.64 per share, a year ago; adjusted net income was $40.8 million, or $0.91 per share, versus $40.9 million, or $0.85 per share. Gross margin was 51% versus 50% in the prior-year quarter. By product, BAQSIMI sales were about $45.5 million, Primatene MIST sales were $21 million, glucagon sales were $11.9 million, and other products rose to $66.2 million, helped by ipratropium bromide sales of $8.4 million. Cash flow from operations was approximately $51.3 million, and the company repurchased about $45 million of shares. For 2026, management maintained corporate sales guidance of mid-single-digit to high-single-digit growth, while IMS remediation is expected to add $2 million to $3 million of expense per quarter for the next several quarters; capital expenditures will increase at IMS but total capex guidance is unchanged because spending is being redirected from Amphastar to IMS.

Management framed the quarter as evidence of Amphastar’s diversified strategy working, citing growth across the commercial portfolio, progress in manufacturing, and ongoing pipeline advancement. Dan Dischner emphasized the three growth pillars—branded/differentiated products, complex generics/biosimilars, and proprietary programs—and said the company is building resilience by reducing dependence on any one product or revenue stream. His tone was confident and steady, with repeated references to long-term value creation and strong execution despite a dynamic operating environment.

Bill Peters highlighted the main financial drivers: revenue of $183.9 million, gross margin of 51%, and adjusted EPS of $0.91. He said the margin improvement was helped by higher-margin launches like ipratropium bromide, teriparatide, and iron sucrose, partly offset by lower selling prices for BAQSIMI, glucagon, and epinephrine multidose vials, plus higher manufacturing costs. He also noted operating discipline and capital returns, including $51.3 million of operating cash flow and about $45 million of share repurchases, while warning that IMS remediation will add $2 million to $3 million of quarterly expense for several quarters. He added that despite IMS-related disruptions, the company still expects mid-single-digit to high-single-digit overall sales growth in 2026.

Analysts pressed on IMS, asking about the scope of the warning letter, whether production lines could be shut down, and how much revenue exposure the site represents. Management said IMS is roughly a third of corporate sales on a big-picture basis, shipping continues, and any shutdowns are not expected at this point, though they remain a possibility depending on remediation findings. Another major focus was BAQSIMI’s 340B pricing pressure; management said the third-party remediation effort only began in May and that the company is about halfway toward the earlier goal of reducing duplicate-discount issues by 80%. Investors also asked about business development priorities, and management said it prefers immediately accretive or near-term accretive assets, while new commercial verticals would likely be limited to areas adjacent to current capabilities such as oncology, ophthalmology, immunology, and endocrinology.