Amphastar Q3 Net Income Rises to $37.8 Million as Revenue Grows 8%

Amphastar Pharmaceuticals reported (AMPH ) on November 5, 2026 that net revenue for the third quarter ended September 30, 2026 rose 8% year over year to $207.6 million, while GAAP net income increased to $37.8 million from $17.4 million. Diluted earnings were $0.87 per share, compared with $0.37 a year earlier.

The profit comparison was shaped by a sharp reduction in general and administrative expense, which fell to $16.8 million from $39.5 million. The year-earlier quarter included a $23.1 million litigation provision for a matter settled in the fourth quarter of 2025. Income from operations rose to $50.8 million from $25.3 million.

Adjusted non-GAAP net income, which adjusts for items including intangible amortization, share-based compensation, impairment, litigation provisions and related tax effects, increased to $49.3 million, or $1.14 per diluted share, from $44.7 million, or $0.93. The smaller adjusted improvement makes the prior-year litigation provision essential to explaining why GAAP profit rose so sharply.

Product Gains Offset Declines

BAQSIMI revenue rose 10% to $58.8 million. Higher unit volumes added $7.4 million, while lower average selling prices reduced sales by approximately $2.2 million following changes in discounts, chargebacks, rebates and customer mix. Primatene MIST revenue increased 9% to $31.5 million, with a price increase implemented in the second quarter of 2026 contributing $1.6 million and higher volumes adding $1.0 million.

Amphastar attributed lidocaine’s 29% revenue increase to $16.6 million to higher demand caused by other suppliers’ shortages. Ipratropium bromide contributed $6.6 million following its second-quarter launch.

Those gains were partly countered by weaker epinephrine and glucagon sales. Epinephrine revenue fell 19% to $15.3 million as slower pre-filled syringe releases were associated with remediation at subsidiary International Medication Systems. Glucagon revenue dropped 37% to $8.6 million because of lower average selling prices amid increased competition.

Other products generated $70.2 million, up 9%. That category included $6.4 million from teriparatide, launched in December 2025, and $6.2 million of active pharmaceutical ingredient sales from Amphastar Nanjing Pharmaceuticals, partly offset by lower sales of several products manufactured at International Medication Systems.

Manufacturing Costs Compress Gross Margin

Cost of revenues increased 16% to $108.0 million, outpacing the revenue gain. Gross profit rose only 1% to $99.6 million, while gross margin narrowed to 48.0% from 51.4%.

Amphastar attributed the margin pressure to lower selling prices for higher-margin BAQSIMI, glucagon and epinephrine multi-dose vials, increased manufacturing expenses from remediation in response to an FDA warning letter, and expansion of its Rancho Cucamonga manufacturing facility. Recently launched teriparatide and ipratropium bromide, both higher-margin products, partially offset those pressures.

Research and development expense declined 10% to $20.1 million, primarily because the prior-year quarter included a $5.3 million upfront licensing payment to Nanjing Anji Biotechnology. Higher spending on materials and supplies for insulin and proprietary pipeline products, as well as salaries and personnel costs, partly offset that comparison.

Buyback Follows Cash Generation

Operating activities provided $142.5 million of cash during the first nine months of 2026. Cash and cash equivalents were $204.6 million at quarter-end, compared with $170.2 million at December 31, 2025, while short-term investments declined to $26.0 million from $112.6 million.

On November 4, 2026, the board authorized a $50 million increase to the share buyback program, disclosed publicly in the results release. Amphastar expects the program to continue indefinitely and identified offsetting dilution from equity compensation as its primary goal. The timing and actual number of shares repurchased will depend on price, corporate and regulatory requirements and other conditions, distinguishing the authorization from completed repurchases.

The quarter leaves a clear operational question: whether newer higher-margin products and manufacturing remediation can improve the conversion of sales growth into gross profit while pricing and competitive pressures persist. New launches and higher volumes are expanding the business, but production costs and lower prices are absorbing much of that benefit as the board expands its repurchase authorization.