Amphastar Pharmaceuticals, Inc. (AMPH) Income Statement

The top line has been essentially flat over the past year, with quarterly growth oscillating between -4.4% and +5.4%. The recent uptick in 2026Q2 may reflect early contributions from new product launches, but the overall trend indicates that the portfolio is in a transition, with legacy products like enoxaparin likely experiencing volume and price erosion. The acquisition of Baqsimi is expected to shift the mix toward branded products, but its full impact on revenue growth is not yet visible in the reported figures.

The wide range in gross margin suggests that the company's product mix is not stable, with high-margin proprietary products like Primatene Mist and Baqsimi potentially offset by lower-margin generics and API sales. The dip in 2026Q1 to 41.1% may indicate one-time costs or a temporary unfavorable mix, but the recovery to 50.8% in the following quarter suggests that the underlying margin structure remains intact. Investors should monitor whether the branded mix can sustain margins above 50% as the company scales its commercial infrastructure.

The operating margin volatility is more pronounced than gross margin, suggesting that operating expenses are not well controlled relative to revenue fluctuations. In 2025Q3, SG&A spiked to $51.0M, nearly double the typical level, which may reflect one-time charges or increased investment in the Baqsimi launch. The subsequent quarters show a return to more normal expense levels, but the lack of consistent operating leverage suggests that the company is investing heavily in its commercial infrastructure, which may pressure margins in the near term.

The increase in R&D is consistent with the company's focus on complex generics and proprietary products, but the jump in SG&A in 2025Q3 is notable and may be tied to the Baqsimi acquisition and the build-out of a branded sales force. While these investments are necessary for long-term growth, they are currently compressing operating margins. The company's ability to manage these costs while scaling revenue will be critical to restoring operating leverage.

The acquisition is likely to change the revenue mix and margin profile, but the reported data shows that gross margins have not yet consistently improved, and operating expenses have increased. The company's historical success with Primatene Mist suggests it can execute on complex products, but the integration of Baqsimi introduces new risks, including commercial execution and potential competition. The lasting impact will depend on whether the branded portfolio can offset the decline in legacy generics and deliver sustainable growth.