In This Article:
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Amphastar Pharmaceuticals Inc (NASDAQ:AMPH) achieved a 14% increase in annual revenues, reaching $732 million for the 2024 fiscal year.
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The company recorded a solid 5% year-over-year growth in the fourth quarter, with revenues of $186 million.
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Primatene Mist sales reached $102 million, marking a 14% increase from 2023, and surpassed the $100 million annual goal set three years ago.
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A new strategic partnership with Mankind is expected to expand sales reach for the diabetes franchise, particularly for the product Baximmi.
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Amphastar Pharmaceuticals Inc (NASDAQ:AMPH) is optimistic about the potential approval of four key products in 2025, which could enhance their product portfolio and market position.
Negative Points
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Glucagon sales declined by 5% due to increased competition and a market shift towards ready-to-use products.
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Epinephrine sales decreased to $18.7 million from $24.6 million in the previous year due to heightened competition.
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Gross margins decreased to 46.5% in the fourth quarter of 2024 from 54% in the same period of 2023, impacted by higher labor and component costs.
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Selling, distribution, and marketing expenses increased by 21% due to expanded efforts for Baximmi.
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The company anticipates flat sales in 2025 due to increased competition for several products, with a return to double-digit growth expected in 2026.
Q & A Highlights
Q: Can you provide your outlook on Primatene Mist and Glucagon for 2025? A: We expect Primatene Mist to experience high single-digit sales growth. For Glucagon, due to increased competition, we anticipate both pricing and unit volume declines. (Bill Peters, CFO)
Q: How prepared are you to launch AMP 007 and AMP 018 if they get approved in Q2? A: If approved in Q2, we expect to launch these products in the third quarter. First cycle reviews are possible for GLP-1 products, but given their complexity, it might require more review cycles. (Tony Morris, EVP of Regulatory Affairs and Clinical Operations)
Q: What impact are you seeing from the expanded sales force and collaboration with Mankind for Baximi? A: It's early, but Mankind's larger sales force, experienced in endocrinology, is expected to significantly boost Baximi's promotion. We anticipate seeing traction as the year progresses. (Dan Dishner, SVP of Corporate Communications)
Q: Can you provide more details on the expected product launches and competition impact for 2025? A: We expect two product launches in the fourth quarter on a risk-adjusted basis. While competition will impact sales, particularly for Glucagon and Epinephrine, we anticipate flat sales in 2025 before returning to double-digit growth in 2026. (Bill Peters, CFO)