Amphastar Pharmaceuticals Reports Financial Results for the Three Months and Full-Year Ended December 31, 2022
02/28/2023 - 04:05 PM
Reports Net Revenues of $135.0 Million for the Three Months Ended December 31, 2022
RANCHO CUCAMONGA, CA / ACCESSWIRE / February 28, 2023 / Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) ("Amphastar" or the "Company") today reported results for the three months and full-year ended December 31, 2022.
Fourth Quarter Highlights
Net revenues of $135.0 million for the fourth quarter GAAP net income of $33.9 million , or $0.66 per share, for the fourth quarter Adjusted non-GAAP net income of $37.6 million , or $0.73 per share, for the fourth quarter Full-Year Highlights
Net revenues of $499.0 million for the fiscal year GAAP net income of $91.4 million , or $1.74 per share, for the fiscal year Adjusted non-GAAP net income of $103.2 million , or $1.97 per share, for the fiscal year Dr. Jack Zhang, Amphastar's President and Chief Executive Officer, commented: "We are pleased to report our strongest quarter yet, driven by sales of epinephrine, Primatene MIST® , glucagon, and other finished pharmaceutical products. Looking ahead to 2023, we anticipate launching multiple new products to continue driving our growth."
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
(in thousands, except per share data) Net revenues
$ 135,023 $ 120,887 $ 498,987 $ 437,768 GAAP net income attributable to Amphastar
$ 33,913 $ 19,760 $ 91,386 $ 62,116 Adjusted non-GAAP net income attributable to Amphastar*
$ 37,638 $ 20,833 $ 103,186 $ 67,999 GAAP diluted EPS attributable to Amphastar stockholders
$ 0.66 $ 0.39 $ 1.74 $ 1.25 Adjusted non-GAAP diluted EPS attributable to Amphastar stockholders*
$ 0.73 $ 0.42 $ 1.97 $ 1.37
* Adjusted non-GAAP net income attributable to Amphastar and Adjusted non-GAAP diluted EPS attributable to Amphastar stockholders are non-GAAP financial measures. Please see the discussion in the section entitled "Non-GAAP Financial Measures" and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release.
Fourth Quarter Results
Three Months Ended
December 31, Change
2022 2021 Dollars %
(in thousands) Net revenues:
Primatene MIST®
$ 22,279 $ 21,489 $ 790 4 % Epinephrine
21,427 18,868 2,559 14 % Glucagon
18,319 15,335 2,984 19 % Lidocaine
13,286 12,099 1,187 10 % Phytonadione
11,666 13,921 (2,255 ) (16 )% Enoxaparin
7,812 7,942 (130 ) (2 )% Naloxone
4,845 6,546 (1,701 ) (26 )% Other finished pharmaceutical products
33,082 21,776 11,306 52 % Total finished pharmaceutical products net revenues
$ 132,716 $ 117,976 $ 14,740 12 % API
2,307 2,911 (604 ) (21 )% Total net revenues
$ 135,023 $ 120,887 $ 14,136 12 %
Changes in net revenues as compared to fourth quarter in prior year were primarily driven by:
Primatene MIST® sales increased primarily due to an increase in unit volumes Epinephrine sales increased by $1.8 million due to an increase in average selling price, with the remainder of the increase due to increased unit volumes as a result of competitor shortages Glucagon sales increased primarily due to an increase in unit volumes Phytonadione sales decreased due to decreased unit volumes Naloxone sales decreased primarily due to a lower average selling price Other finished pharmaceutical product sales changes were primarily due to:An increase in unit volumes for dextrose and sodium bicarbonate, which were in high demand due to competitor shortages Higher unit volumes of isoproterenol Launches of ganirelix and vasopressin, in June 2022 and August 2022, respectively Active Pharmaceutical ingredient ("API") sales decreased primarily due to the timing of customer purchases
Three Months Ended
December 31, Change
2022 2021 Dollars %
(in thousands) Net revenues
$ 135,023 $ 120,887 $ 14,136 12 % Cost of revenues
63,855 64,653 (798 ) (1 )% Gross profit
$ 71,168 $ 56,234 $ 14,934 27 % as % of net revenues
53% 47%
Changes in the cost of revenues and the resulting increase in gross margins were primarily driven by:
Increased sales of higher-margin products such as Primatene MIST® , epinephrine, and glucagon, as well as the launches of ganirelix and vasopressin in 2022 These factors were partially offset by overall increases in labor and input costs
Three Months Ended
December 31, Change
2022 2021 Dollars %
(in thousands) Selling, distribution, and marketing
$ 5,472 $ 4,075 $ 1,397 34 % General and administrative
10,628 10,621 7 0 % Research and development
17,236 17,286 (50 ) 0 % Non-operating income (expense), net
3,428 2,910 518 18 %
Selling, distribution, and marketing expenses increased primarily due to increased advertising and freight expenses Research and development expenses remained flat during the quarter as a result of a decrease in expenditure for materials and components, which was partially offset by an increase in clinical trial expense for our insulin and inhalation product pipeline The change in non-operating income, net is primarily a result of foreign currency gains Year-End Results
Year Ended December 31, Change
2022 2021 Dollars %
(in thousands) Net revenues:
Primatene MIST®
$ 84,309 $ 73,113 $ 11,196 15 % Epinephrine
74,204 57,530 16,674 29 % Glucagon
55,322 47,639 7,683 16 % Lidocaine
52,539 44,413 8,126 18 % Phytonadione
49,500 45,498 4,002 9 % Enoxaparin
34,950 35,962 (1,012 ) (3 )% Naloxone
26,269 27,540 (1,271 ) (5 )% Other finished pharmaceutical products
109,412 87,875 21,537 25 % Total finished pharmaceutical products net revenues
$ 486,505 $ 419,570 $ 66,935 16 % API
12,482 18,198 (5,716 ) (31 )% Total net revenues
$ 498,987 $ 437,768 $ 61,219 14 %
Changes in net revenues were primarily driven by:
Primatene MIST® sales increased primarily due to increased unit volumes, which was primarily a result of the continued success of our advertising campaign throughout the year Epinephrine sales increased primarily due to an increase in unit volumes, arising from high demand due to competitor shortages, contributing $9.0 million in sales, as well as a higher average selling price, which contributed $7.7 million to the increase in sales Glucagon sales increased due to an increase in unit volumes as the prior year period did not include a full year of sales due to glucagon's launch in the first quarter of 2021 Lidocaine sales increased due to an increase in unit volumes, which contributed $4.4 million , as well as a higher average selling price, which contributed $3.8 million to the increase in sales Phytonadione sales increased due to a higher average selling price Other finished pharmaceutical product sales changes were primarily due to:Higher unit volumes of calcium chloride, dextrose, and sodium bicarbonate, which were in high demand due to competitor shortages Launches of ganirelix and vasopressin in June 2022 and August 2022, respectively API sales decreased primarily due to the timing of customer purchases
Year Ended December 31, Change
2022 2021 Dollars %
(in thousands) Net revenues
$ 498,987 $ 437,768 $ 61,219 14 % Cost of revenues
250,127 238,029 12,098 5 % Gross profit
$ 248,860 $ 199,739 $ 49,121 25 % as % of net revenues
50% 46%
Changes in the cost of revenues and the resulting increase in gross margins were primarily driven by:
Increased sales of higher-margin products such as Primatene MIST® , epinephrine, and glucagon, as well as the launches of ganirelix and vasopressin in 2022 These factors were partially offset by overall increases in labor and input costs
Year Ended December 31, Change
2022 2021 Dollars %
(in thousands) Selling, distribution, and marketing
$ 21,531 $ 17,486 $ 4,045 23 % General and administrative
45,061 51,434 (6,373 ) (12 )% Research and development
74,771 60,932 13,839 23 % Non-operating income (expense), net
8,543 14,252 (5,709 ) (40 )%
Selling, distribution, and marketing expenses increased due to increased freight expense and advertising expense for Primatene MIST® General and administrative expenses decreased primarily due to a decrease in legal expenses and a decrease in expenses in China due to the restructuring of Amphastar's Chinese subsidiary, Amphastar Nanjing Pharmaceutical, Co., Ltd. ("ANP"), in 2021 Research and development expenses increased due to:Increases in expenditures for materials and components, primarily for our AMP-018 and insulin products candidates An increase in clinical trial expense primarily due to external studies related to our insulin and inhalation product pipeline This was partially offset by a decrease in expenses in China due to the completion of the restructuring of ANP in 2021 The change in non-operating income, net is primarily due to:$5.4 million litigation settlement received in January 2022 in connection with the Regadenoson patent litigation$13.6 million gain on the deconsolidation of Hanxin Pharmaceutical Technology Co., Ltd related to the ANP restructuring in 2021 Cash flow provided by operating activities for the year ended December 31, 2022 was $89.2 million .
Pipeline Information
The Company currently has three ANDAs on file with the FDA targeting products with a market size of over $3 billion , three biosimilar products in development targeting products with a market size of over $11 billion , and six generic products in development targeting products with a market size of over $9 billion . This market information is based on IQVIA data for the 12 months ended December 31, 2022. The Company is developing multiple proprietary products with injectable and intranasal dosage forms.
Amphastar's Chinese subsidiary, ANP, currently has 17 Drug Master Files, or DMFs, on file with the FDA and is developing several additional DMFs.
Company Information
Amphastar is a bio-pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically-challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells insulin API products. Most of the Company's finished products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers. More information and resources are available at www.amphastar.com .
Amphastar's logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar® , Primatene MIST® , Amphadase® , and Cortrosyn® , are the property of Amphastar.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results, including (i) Adjusted non-GAAP net income (loss) attributed to Amphastar and (ii) Adjusted non-GAAP diluted EPS attributed to Amphastar's stockholders, which exclude amortization expense, share-based compensation, impairment charges, legal settlements, and other one-time events in order to supplement investors' and other readers' understanding and assessment of the Company's financial performance because the Company's management uses these measures internally for forecasting, budgeting, and measuring its operating performance. Whenever the Company uses such non-GAAP measures, it will provide a reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP.
Conference Call Information
The Company will hold a conference call to discuss its financial results today, February 28, 2023, at 2:00 p.m. Pacific Time.
To access the conference call, dial toll-free (877) 407-0989 or (201) 389-0921 for international callers, five minutes before the conference.
The call can also be accessed on the Investors page on the Company's website at www.amphastar.com
Forward-Looking Statements
All statements in this press release and in the conference call referenced above that are not historical are forward-looking statements, including, among other things, statements relating to our expectations regarding future financial performance and business trends, our future growth, backlog, sales and marketing of our products, market size and expansion, product development, the timing of FDA filings or approvals, including the DMFs of ANP, the timing of product launches, acquisitions and other matters related to our pipeline of product candidates, the timing and results of clinical trials, our share buyback program, and other future events, such as the impact of the COVID-19 pandemic including its variants, the Russia-Ukraine conflict and resulting macroeconomic conditions, such as inflation and rising interest rates, and related responses of business and governments to the pandemic and international conflict on our operations and personnel, and on commercial activity and demand across our business operations and results of operations. These statements are not facts but rather are based on Amphastar's historical performance and our current expectations, estimates, and projections regarding our business, operations, and other similar or related factors. Words such as "may," "might," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Amphastar's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Amphastar's filings with the Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 11, 2022, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the SEC on May 10, 2022, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, filed with the SEC on August 9, 2022, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the SEC on November 7, 2022. In particular, the extent of COVID-19 including its variants, the Russia-Ukraine conflict and resulting macroeconomic conditions, such as inflation and rising interest rates, impacts on our business will depend on several factors, including the actions taken by governments, businesses, and consumers in response, which continues to evolve and remain uncertain at this time. You can locate these reports through our website at http://ir.amphastar.com and on the SEC's website at www.sec.gov . The forward-looking statements in this release speak only as of the date of the release. Amphastar undertakes no obligation to revise or update information or any forward-looking statements in this press release or the conference call referenced above to reflect events or circumstances in the future, even if new information becomes available or if subsequent events cause our expectations to change.
Contact Information:
Table I Amphastar Pharmaceuticals, Inc. Condensed Consolidated Statement of Operations (Unaudited; in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
Net revenues
$ 135,023 $ 120,887 $ 498,987 $ 437,768 Cost of revenues
63,855 64,653 250,127 238,029 Gross profit
71,168 56,234 248,860 199,739
Operating expenses:
Selling, distribution, and marketing
5,472 4,075 21,531 17,486 General and administrative
10,628 10,621 45,061 51,434 Research and development
17,236 17,286 74,771 60,932 Total operating expenses
33,336 31,982 141,363 129,852
Income from operations
37,832 24,252 107,497 69,887
Non-operating income (expense), net
3,428 2,910 8,543 14,252
Income before income taxes
41,260 27,162 116,040 84,139 Income tax provision
7,290 7,194 23,477 20,630 Net income before equity in losses of unconsolidated affiliate
33,970 19,968 92,563 63,509
Equity in losses of unconsolidated affiliate
(57 ) (208 ) (1,177 ) (208 )
Net income
$ 33,913 $ 19,760 $ 91,386 $ 63,301
Net income attributable to non-controlling interests
$ - $ - $ - $ 1,185
Net income attributable to Amphastar
$ 33,913 $ 19,760 $ 91,386 $ 62,116
Net income per share attributable to Amphastar stockholders:
Basic
$ 0.70 $ 0.41 $ 1.88 $ 1.30 Diluted
$ 0.66 $ 0.39 $ 1.74 $ 1.25
Weighted-average shares used to compute net income per share attributable to Amphastar stockholders:
Basic
48,298 47,836 48,551 47,777 Diluted
51,716 50,057 52,427 49,784
Table II Amphastar Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (Unaudited; in thousands, except share data)
December 31, December 31,
2022 2021 ASSETS
Current assets:
Cash and cash equivalents
$ 156,098 $ 126,353 Restricted cash
235 235 Short-term investments
19,664 10,320 Restricted short-term investments
2,200 2,200 Accounts receivable, net
88,804 78,804 Inventories
103,584 92,807 Income tax refunds and deposits
171 126 Prepaid expenses and other assets
7,563 7,274 Total current assets
378,319 318,119
Property, plant, and equipment, net
238,266 244,244 Finance lease right-of-use assets
753 353 Operating lease right-of-use assets
25,554 26,894 Investment in unconsolidated affiliate
2,414 3,985 Goodwill and intangible assets, net
37,298 38,870 Other assets
20,856 16,665 Deferred tax assets
38,527 22,399 Total assets
$ 741,987 $ 671,529
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 84,242 $ 89,545 Income taxes payable
4,571 9,081 Current portion of long-term debt
3,046 2,202 Current portion of operating lease liabilities
3,003 2,982 Total current liabilities
94,862 103,810
Long-term reserve for income tax liabilities
7,225 6,531 Long-term debt, net of current portion and unamortized debt issuance costs
72,839 74,776 Long-term operating lease liabilities, net of current portion
23,694 24,703 Deferred tax liabilities
144 534 Other long-term liabilities
14,565 15,653 Total liabilities
213,329 226,007 Commitments and contingencies
Stockholders' equity:
Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding
- - Common stock: par value $0.0001; 300,000,000 shares authorized; 58,110,231 and 48,112,069 shares issued and outstanding as of December 31, 2022 and 56,440,202 and 47,714,912 shares issued and outstanding as of December 31, 2021, respectively
6 6 Additional paid-in capital
455,077 422,423 Retained earnings
271,723 180,337 Accumulated other comprehensive loss
(8,624 ) (6,765 ) Treasury stock
(189,524 ) (150,479 ) Total equity
528,658 445,522 Total liabilities and stockholders' equity
$ 741,987 $ 671,529
Table III Amphastar Pharmaceuticals, Inc. Reconciliation of Non-GAAP Measures (Unaudited; in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2022 2021 2022 2021
GAAP net income
$ 33,913 $ 19,760 $ 91,386 $ 63,301 Adjusted for:
Intangible amortization
331 360 1,419 1,290 Share-based compensation
4,304 3,850 17,860 18,687 Impairment of long-lived assets
- 9 - 348 Gain on ANP Restructuring
- - - (13,587 ) Reserves for litigation and settlements
- (2,717 ) (4,929 ) 274 Income tax provision on pre-tax adjustments
(910 ) (429 ) (2,550 ) (2,043 ) Non-GAAP net income
$ 37,638 $ 20,833 $ 103,186 $ 68,270
Non-GAAP net income attributable to non-controlling interests
$ - $ - $ - $ 271
Non-GAAP net income attributable to Amphastar
$ 37,638 $ 20,833 $ 103,186 $ 67,999
Non-GAAP net income per share attributable to Amphastar stockholders:
Basic
$ 0.78 $ 0.44 $ 2.13 $ 1.42 Diluted
$ 0.73 $ 0.42 $ 1.97 $ 1.37
Weighted-average shares used to compute non-GAAP net income per share attributable to Amphastar stockholders:
Basic
48,298 47,836 48,551 47,777 Diluted
51,716 50,057 52,427 49,784
Three Months Ended December 31, 2022
Selling, General Research Non-operating Non-controlling
Cost of distribution and and income Income interest
revenue and marketing administrative development (expense), net tax provision adjustment GAAP
$ 63,855 $ 5,472 $ 10,628 $ 17,236 $ 3,428 $ 7,290 $ - Intangible amortization
(205 ) - (126 ) - - - - Share-based compensation
(941 ) (186 ) (2,791 ) (386 ) - - - Income tax provision on pre-tax adjustments
- - - - - 910 - Non-GAAP
$ 62,709 $ 5,286 $ 7,711 $ 16,850 $ 3,428 $ 8,200 $ -
Three Months Ended December 31, 2021
Selling, General Research Non-operating Non-controlling
Cost of distribution and and income Income interest
revenue and marketing administrative development (expense), net tax provision adjustment GAAP
$ 64,653 $ 4,075 $ 10,621 $ 17,286 $ 2,910 $ 7,194 $ - Intangible amortization
(235 ) - (125 ) - - - - Share-based compensation
(811 ) (158 ) (2,553 ) (328 ) - - - Impairment of long-lived assets
(9 ) - - - - - - Reserves for litigation and settlements
- - - - (2,717 ) - - Income tax provision on pre-tax adjustments
- - - - - 429 - Non-GAAP
$ 63,598 $ 3,917 $ 7,943 $ 16,958 $ 193 $ 7,623 $ -
Year Ended December 31, 2022
Selling, General Research Non-operating Non-controlling
Cost of distribution and and income Income interest
revenue and marketing administrative development (expense), net tax provision adjustment GAAP
$ 250,127 $ 21,531 $ 45,061 $ 74,771 $ 8,543 $ 23,477 $ - Intangible amortization
(865 ) - (554 ) - - - - Share-based compensation
(4,179 ) (726 ) (11,180 ) (1,775 ) - - - Reserves for litigation and settlements
- - (800 ) - (5,729 ) - - Income tax provision on pre-tax adjustments
- - - - - 2,550 - Non-GAAP
$ 245,083 $ 20,805 $ 32,527 $ 72,996 $ 2,814 $ 26,027 $ -
Year Ended December 31, 2021
Selling, General Research Non-operating Non-controlling
Cost of distribution and and income Income interest
revenue and marketing administrative development (expense), net tax provision adjustment GAAP
$ 238,029 $ 17,486 $ 51,434 $ 60,932 $ 14,252 $ 20,630 $ 1,185 Intangible amortization
(963 ) - (327 ) - - - 26 Share-based compensation
(3,778 ) (596 ) (12,622 ) (1,691 ) - - 870 Impairment of long-lived assets
(93 ) - (33 ) (222 ) - - 7 Gain on ANP Restructuring
- - - - (13,587 ) - (2,062 ) Reserves for litigation and settlements
- - (1,295 ) - (1,021 ) - - Income tax provision on pre-tax adjustments
- - - - - 2,043 245 Non-GAAP
$ 233,195 $ 16,890 $ 37,157 $ 59,019 $ (356 ) $ 22,673 $ 271
SOURCE: Amphastar Pharmaceuticals, Inc.
https://www.accesswire.com/741090/Amphastar-Pharmaceuticals-Reports-Financial-Results-for-the-Three-Months-and-Full-Year-Ended-December-31-2022
