Nucor earnings beat by $0.08, revenue fell short of estimates
RANCHO CUCAMONGA, Calif. - Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH), currently trading near its 52-week low but showing strong financial health according to InvestingPro analysis, announced Monday plans to expand its U.S. manufacturing operations at its headquarters in Rancho Cucamonga, California, with the goal of quadrupling production capacity over the next three to five years.
The biopharmaceutical company, which specializes in complex generic and proprietary injectable, inhalation, and intranasal products, described the initiative as its largest domestic infrastructure investment to date. With a healthy current ratio of 2.95 and strong profitability metrics showing a 50.5% gross margin, the company appears well-positioned for this expansion.
The expansion will include a new production plant, expanded automation, and integration of advanced technologies to support the development and manufacture of critical medications, including new pipeline candidates.
"Expanding our domestic manufacturing footprint is not only a strategic milestone for Amphastar but a reaffirmation of our commitment to producing essential medicines right here in the United States," said Dr. Jack Zhang, Amphastar’s President and CEO, in a press release statement. InvestingPro data suggests the company is currently undervalued, with a P/E ratio of 7.49 and strong free cash flow yield, indicating potential for growth. Get detailed analysis and more insights with InvestingPro’s comprehensive research report.
The company expects to create new jobs in research and development, engineering, manufacturing, and quality operations once the expansion is completed.
Amphastar stated it will work with government leadership at various levels to ensure sustainable growth, workforce development, and alignment with economic and public health priorities.
The company currently manufactures all of its finished pharmaceutical products in the United States, according to the announcement.
In other recent news, Amphastar Pharmaceuticals reported its Q1 2025 financial results, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $0.51, below the projected $0.694, and revenue of $170.5 million, missing the forecasted $174.35 million. This represents a 1% decline in revenue year-over-year. The company’s net income also decreased to $25.3 million from $43.2 million in the same quarter of the previous year. Meanwhile, JPMorgan downgraded Amphastar’s stock rating from Overweight to Neutral, citing challenges in the company’s product pipeline and regulatory hurdles. The firm also lowered its price target for Amphastar to $30.00, down from $45.00. Despite these challenges, the FDA accepted a Biologics License Application for Amphastar’s insulin aspart, indicating progress in its product diversification efforts. Additionally, the company reported a 20% increase in sales of Primatene Mist, signaling strong market demand for this product.
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