Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) (“Amphastar” or the
“Company”) today reported results for the three months ended March
31, 2021.
First Quarter Highlights
- Net revenues of $103.0 million for the first quarter
- GAAP net income of $5.0 million, or $0.10 per share, for the
first quarter
- Adjusted non-GAAP net income of $13.6 million, or $0.27 per
share, for the first quarter
Dr. Jack Zhang, Amphastar’s President and Chief Executive
Officer commented: “The launch of glucagon, along with strong sales
growth of Primatene Mist® and our epinephrine products, contributed
to one of Amphastar’s strongest quarters in terms of sales growth
to date. We expect that these core growth products will continue to
drive growth for the remainder of the year, while we are confident
in seeing our pipeline develop to diversify our portfolio.”
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Three Months Ended |
|
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March 31, |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
(in thousands, except per share data) |
Net revenues |
|
$ |
103,020 |
|
$ |
84,688 |
GAAP net income attributable
to Amphastar |
|
$ |
5,041 |
|
$ |
3,949 |
Adjusted non-GAAP net income
attributable to Amphastar* |
|
$ |
13,553 |
|
$ |
8,383 |
GAAP diluted EPS attributable
to Amphastar stockholders |
|
$ |
0.10 |
|
$ |
0.08 |
Adjusted non-GAAP diluted EPS
attributable to Amphastar stockholders* |
|
$ |
0.27 |
|
$ |
0.17 |
_______________ * Adjusted non-GAAP net income and Adjusted
non-GAAP diluted EPS 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.
First Quarter Results
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Three Months Ended |
|
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|
|
|
|
March 31, |
|
Change |
|
|
|
2021 |
|
2020 |
|
Dollars |
|
% |
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(in thousands) |
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Net
revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Primatene Mist® |
|
$ |
18,383 |
|
$ |
12,877 |
|
$ |
5,506 |
|
|
43 |
|
% |
Epinephrine |
|
|
15,578 |
|
|
3,990 |
|
|
11,588 |
|
|
290 |
|
% |
Enoxaparin |
|
|
10,658 |
|
|
9,168 |
|
|
1,490 |
|
|
16 |
|
% |
Phytonadione |
|
|
9,565 |
|
|
11,029 |
|
|
(1,464 |
) |
|
(13 |
) |
% |
Lidocaine |
|
|
9,071 |
|
|
10,657 |
|
|
(1,586 |
) |
|
(15 |
) |
% |
Glucagon |
|
|
7,984 |
|
|
— |
|
|
7,984 |
|
|
N/A |
|
|
Naloxone |
|
|
6,341 |
|
|
8,875 |
|
|
(2,534 |
) |
|
(29 |
) |
% |
Other finished pharmaceutical products |
|
|
20,302 |
|
|
24,702 |
|
|
(4,400 |
) |
|
(18 |
) |
% |
Total finished pharmaceutical
products net revenues |
|
$ |
97,882 |
|
$ |
81,298 |
|
$ |
16,584 |
|
|
20 |
|
% |
API |
|
|
5,138 |
|
|
3,390 |
|
|
1,748 |
|
|
52 |
|
% |
Total net revenues |
|
$ |
103,020 |
|
$ |
84,688 |
|
$ |
18,332 |
|
|
22 |
|
% |
Changes in net revenues were primarily driven by:
- Primatene Mist® increased volumes resulting from:
- The continued success of our nationwide television, radio, and
digital marketing campaign
- An increase in our distribution channels throughout 2020 and
during the first quarter of 2021, including Target, which began
selling Primatene Mist® in March 2021
- Glucagon for injection emergency kit launched in February
2021
- Epinephrine sales increased due to the launch of our approved
epinephrine injection multi-dose vials during the second quarter of
2020 and a market shortage of the pre-filled syringes
- Naloxone sales decreased due to lower average selling price
because of increased competition
- Other finished pharmaceutical product sales decreased due to
lower demand, largely due to competitors returning to their normal
distribution levels
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Three Months Ended |
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March 31, |
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Change |
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2021 |
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2020 |
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Dollars |
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% |
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(in thousands) |
|
|
|
Net revenues |
|
$ |
103,020 |
|
|
$ |
84,688 |
|
|
$ |
18,332 |
|
22 |
% |
Cost of revenues |
|
|
58,074 |
|
|
|
47,865 |
|
|
|
10,209 |
|
21 |
% |
Gross profit |
|
$ |
44,946 |
|
|
$ |
36,823 |
|
|
$ |
8,123 |
|
22 |
% |
as % of net revenues |
|
|
44% |
|
|
|
43% |
|
|
|
|
|
|
|
Changes in the cost of revenues and the resulting increase in
gross margin were primarily driven by:
- Increased sales of higher margin products such as Primatene
Mist®, epinephrine injection multi-dose vials, and glucagon
- Partially offset by increased sales of low margin enoxaparin
and higher input cost
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Three Months Ended |
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March 31, |
|
Change |
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2021 |
|
2020 |
|
Dollars |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
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(in thousands) |
|
|
|
Selling, distribution, and marketing |
|
$ |
4,537 |
|
|
$ |
3,294 |
|
|
$ |
1,243 |
|
|
38 |
|
% |
General and
administrative |
|
|
15,338 |
|
|
|
10,746 |
|
|
|
4,592 |
|
|
43 |
|
% |
Research and development |
|
|
14,765 |
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|
|
15,303 |
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|
(538 |
) |
|
(4 |
) |
% |
Non-operating expense,
net |
|
|
5,192 |
|
|
|
1,675 |
|
|
|
3,517 |
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NM |
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|
- Selling, distribution, and marketing expenses increased due to
the cost of our ongoing national television, radio, and digital
marketing campaign for Primatene Mist®
- General and administrative expenses increased primarily due to
increased legal expenses, including a reserve of $1.3 million
related to the settlement of employment litigation
- Research and development expenses decreased due to lower
clinical trial expenses, which was partially offset by an increase
in salaries and personnel-related expenses as well as an increase
in depreciation expense
- We recorded an additional $4.4 million of expense relating to
the litigation with Aventis
Cash flow provided by operating activities for the three months
ended March 31, 2021, was $22.8 million.
Pipeline Information
The Company currently has five ANDAs on file with the FDA
targeting products with a market size of approximately $2.4
billion, three biosimilar products in development targeting
products with a market size of approximately $13 billion, and seven
generic products in development targeting products with a market
size of approximately $10 billion. This market information is based
on IQVIA data for the 12 months ended March 31, 2021. The Company
is currently 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,
executive severance expense, and legal settlements, 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, May 6, 2021, at 2:00 p.m. Pacific Time.
To access the conference call, dial toll-free (877)
876-9177 or (785) 424-1672 for international callers, five minutes
before the conference.
The call can also be accessed on the Investors page
on the Company’s website 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, backlog,
sales and marketing of our products, market size and growth,
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, our share buyback program and other future events, such
as the impact of the COVID-19 pandemic and related responses of
business and governments to the pandemic 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, 2020,
filed with the SEC on March 15, 2021. In particular, the extent of
COVID-19’s impact on our business will depend on several factors,
including the severity, duration and extent of the pandemic, as
well as actions taken by governments, businesses, and consumers in
response to the pandemic, all of which continue 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:
Amphastar Pharmaceuticals, Inc.Bill PetersChief Financial
Officer(909) 980-9484
Table IAmphastar
Pharmaceuticals, Inc.Condensed Consolidated
Statement of Operations(Unaudited; in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
Net revenues |
|
$ |
103,020 |
|
|
$ |
84,688 |
|
Cost of revenues |
|
|
58,074 |
|
|
|
47,865 |
|
Gross profit |
|
|
44,946 |
|
|
|
36,823 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Selling, distribution, and marketing |
|
|
4,537 |
|
|
|
3,294 |
|
General and administrative |
|
|
15,338 |
|
|
|
10,746 |
|
Research and development |
|
|
14,765 |
|
|
|
15,303 |
|
Total operating expenses |
|
|
34,640 |
|
|
|
29,343 |
|
|
|
|
|
|
|
|
Income from operations |
|
|
10,306 |
|
|
|
7,480 |
|
|
|
|
|
|
|
|
Non-operating expense,
net |
|
|
(5,192 |
) |
|
|
(1,675 |
) |
|
|
|
|
|
|
|
Income before income
taxes |
|
|
5,114 |
|
|
|
5,805 |
|
Income tax provision |
|
|
1,155 |
|
|
|
2,280 |
|
|
|
|
|
|
|
|
Net income |
|
$ |
3,959 |
|
|
$ |
3,525 |
|
|
|
|
|
|
|
|
Net loss attributable to
non-controlling interests |
|
$ |
(1,082 |
) |
|
$ |
(424 |
) |
|
|
|
|
|
|
|
Net income attributable to
Amphastar |
|
$ |
5,041 |
|
|
$ |
3,949 |
|
|
|
|
|
|
|
|
Net income per share
attributable to Amphastar stockholders: |
|
|
|
|
|
|
Basic |
|
$ |
0.11 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
0.10 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net income per share
attributable to Amphastar stockholders: |
|
|
|
|
|
|
Basic |
|
|
47,520 |
|
|
|
46,408 |
|
Diluted |
|
|
49,518 |
|
|
|
48,248 |
|
Table IIAmphastar
Pharmaceuticals, Inc.Condensed Consolidated
Balance Sheet(Unaudited; in thousands, except per
share data)
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
101,601 |
|
|
$ |
92,642 |
|
Restricted cash |
|
|
235 |
|
|
|
1,865 |
|
Short-term investments |
|
|
13,531 |
|
|
|
12,977 |
|
Restricted short-term investments |
|
|
2,200 |
|
|
|
2,200 |
|
Accounts receivable, net |
|
|
77,938 |
|
|
|
66,005 |
|
Inventories |
|
|
97,110 |
|
|
|
96,831 |
|
Income tax refunds and deposits |
|
|
800 |
|
|
|
385 |
|
Prepaid expenses and other assets |
|
|
6,749 |
|
|
|
6,777 |
|
Total current assets |
|
|
300,164 |
|
|
|
279,682 |
|
|
|
|
|
|
|
|
Property, plant, and
equipment, net |
|
|
253,265 |
|
|
|
260,055 |
|
Finance lease right-of-use
assets |
|
|
594 |
|
|
|
612 |
|
Operating lease right-of-use
assets |
|
|
19,280 |
|
|
|
20,042 |
|
Goodwill and intangible
assets, net |
|
|
40,243 |
|
|
|
40,615 |
|
Other assets |
|
|
7,212 |
|
|
|
5,250 |
|
Deferred tax assets |
|
|
24,980 |
|
|
|
24,980 |
|
Total assets |
|
$ |
645,738 |
|
|
$ |
631,236 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
108,545 |
|
|
$ |
95,504 |
|
Income taxes payable |
|
|
2,676 |
|
|
|
1,077 |
|
Current portion of long-term debt |
|
|
12,173 |
|
|
|
12,263 |
|
Current portion of operating lease liabilities |
|
|
3,702 |
|
|
|
3,357 |
|
Total current liabilities |
|
|
127,096 |
|
|
|
112,201 |
|
|
|
|
|
|
|
|
Long-term reserve for income
tax liabilities |
|
|
4,709 |
|
|
|
4,709 |
|
Long-term debt, net of current
portion |
|
|
32,334 |
|
|
|
34,186 |
|
Long-term operating lease
liabilities, net of current portion |
|
|
16,464 |
|
|
|
17,464 |
|
Deferred tax liabilities |
|
|
755 |
|
|
|
741 |
|
Other long-term
liabilities |
|
|
13,420 |
|
|
|
13,212 |
|
Total liabilities |
|
|
194,778 |
|
|
|
182,513 |
|
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;
55,184,000 and 47,718,003 shares issued and outstanding as of March
31, 2021 and 54,760,922 and 47,495,439 shares issued and
outstanding as of December 31, 2020, respectively |
|
|
6 |
|
|
|
5 |
|
Additional paid-in capital |
|
|
413,926 |
|
|
|
410,061 |
|
Retained earnings |
|
|
122,814 |
|
|
|
117,773 |
|
Accumulated other comprehensive loss |
|
|
(5,642 |
) |
|
|
(3,721 |
) |
Treasury stock |
|
|
(125,546 |
) |
|
|
(121,812 |
) |
Total Amphastar Pharmaceuticals, Inc. stockholders’ equity |
|
|
405,558 |
|
|
|
402,306 |
|
Non-controlling interests |
|
|
45,402 |
|
|
|
46,417 |
|
Total equity |
|
|
450,960 |
|
|
|
448,723 |
|
Total liabilities and stockholders’ equity |
|
$ |
645,738 |
|
|
$ |
631,236 |
|
Table IIIAmphastar
Pharmaceuticals, Inc.Reconciliation of Non-GAAP
Measures(Unaudited; in thousands, except per share
data)
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2021 |
|
2020 |
|
|
|
|
|
|
GAAP net income |
$ |
3,959 |
|
|
$ |
3,525 |
|
Adjusted for: |
|
|
|
|
|
Intangible amortization |
|
276 |
|
|
|
258 |
|
Share-based compensation |
|
4,834 |
|
|
|
5,282 |
|
Impairment of long-lived assets |
|
6 |
|
|
|
14 |
|
Reserves for litigation and settlements |
|
5,695 |
|
|
|
— |
|
Income tax (benefit) provision on pre-tax adjustments |
|
(2,229 |
) |
|
|
(1,004 |
) |
Non-GAAP net income |
$ |
12,541 |
|
|
$ |
8,075 |
|
|
|
|
|
|
|
Non-GAAP net loss attributable
to non-controlling interests |
$ |
(1,012 |
) |
|
$ |
(308 |
) |
|
|
|
|
|
|
Non-GAAP net income
attributable to Amphastar |
$ |
13,553 |
|
|
$ |
8,383 |
|
|
|
|
|
|
|
Non-GAAP net income per share
attributable to Amphastar stockholders: |
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.18 |
|
Diluted |
$ |
0.27 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
Weighted-average shares used to compute non-GAAP net income per
share attributable to Amphastar stockholders: |
|
|
|
|
|
Basic |
|
47,520 |
|
|
|
46,408 |
|
Diluted |
|
49,518 |
|
|
|
48,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, |
|
General |
|
Research |
|
|
|
Income |
|
Non-controlling |
|
|
Cost of |
|
distribution |
|
and |
|
and |
|
Non-operating |
|
tax provision |
|
interest |
|
|
revenue |
|
and marketing |
|
administrative |
|
development |
|
expense, net |
|
(benefit) |
|
adjustment |
GAAP |
|
$ |
58,074 |
|
|
$ |
4,537 |
|
|
$ |
15,338 |
|
|
$ |
14,765 |
|
|
$ |
5,192 |
|
|
$ |
1,155 |
|
$ |
(1,082 |
) |
Intangible amortization |
|
|
(242 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
11 |
|
Share-based compensation |
|
|
(1,146 |
) |
|
|
(127 |
) |
|
|
(2,968 |
) |
|
|
(593 |
) |
|
|
— |
|
|
|
— |
|
|
71 |
|
Impairment of long-lived
assets |
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2 |
|
Reserves for litigation and
settlements |
|
|
— |
|
|
|
— |
|
|
|
(1,295 |
) |
|
|
— |
|
|
|
(4,400 |
) |
|
|
— |
|
|
— |
|
Income tax provision (benefit)
on pre-tax adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,229 |
|
|
(14 |
) |
Non-GAAP |
|
$ |
56,686 |
|
|
$ |
4,410 |
|
|
$ |
11,035 |
|
|
$ |
14,172 |
|
|
$ |
792 |
|
|
$ |
3,384 |
|
$ |
(1,012 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, |
|
General |
|
Research |
|
|
|
Income |
|
Non-controlling |
|
|
Cost of |
|
distribution |
|
and |
|
and |
|
Non-operating |
|
tax provision |
|
interest |
|
|
revenue |
|
and marketing |
|
administrative |
|
development |
|
expense, net |
|
(benefit) |
|
adjustment |
GAAP |
|
$ |
47,865 |
|
|
$ |
3,294 |
|
|
$ |
10,746 |
|
|
$ |
15,303 |
|
|
$ |
1,675 |
|
|
$ |
2,280 |
|
$ |
(424 |
) |
Intangible amortization |
|
|
(224 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
11 |
|
Share-based compensation |
|
|
(1,359 |
) |
|
|
(107 |
) |
|
|
(3,219 |
) |
|
|
(597 |
) |
|
|
— |
|
|
|
— |
|
|
127 |
|
Impairment of long-lived
assets |
|
|
(10 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1 |
|
Income tax provision (benefit)
on pre-tax adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,004 |
|
|
(23 |
) |
Non-GAAP |
|
$ |
46,272 |
|
|
$ |
3,187 |
|
|
$ |
7,489 |
|
|
$ |
14,706 |
|
|
$ |
1,675 |
|
|
$ |
3,284 |
|
$ |
(308 |
) |
Amphastar Pharmaceuticals (NASDAQ:AMPH)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Amphastar Pharmaceuticals (NASDAQ:AMPH)
Gráfica de Acción Histórica
De May 2023 a May 2024