AMPH · Amphastar Pharmaceuticals, Inc.

Gross profit fell sharply 17.5% to $70.3 million from $85.3 million, compressing the gross margin to 41.1%. Management attributes this to lower average selling prices (ASPs) for higher-margin products such as BAQSIMI, glucagon, phytonadione, and epinephrine multi-dose vials. Pricing pressures on these key contributors eroded overall profitability, with operating income declining 63.5% to $13.6 million and the operating margin contracting to 8.0%. Net income followed suit, dropping 74.6% to $6.4 million, or diluted EPS of $0.14 versus $0.51.

Balance sheet signals include rising accounts payable and accrued liabilities, driven by increased customer fees and rebates linked to BAQSIMI sales. Looking forward, management anticipates continued glucagon sales declines from competitive dynamics, with epinephrine and other products fluctuating based on competitor supply capabilities—patterns evident in this quarter's shortage-driven epinephrine lift. Investors should watch pricing stability on high-margin items, cash flow sustainability amid expansion, and supply chain volatility in this specialty pharmaceutical niche, where low backlog heightens exposure to demand shifts.