Amphastar Pharmaceuticals (AMPH) Piper Sandler 36th Annual Healthcare Conference summary

Commercial strategy and product performance

• Baqsimi's sales force will be significantly expanded by January to drive prescription growth after resolving transition issues and negative pricing impacts from higher wholesaler fees; a small price increase is planned for next year.

• Promotional spend for Baqsimi is targeted at around 15% of sales to ensure profitable growth and strong cash flows.

• Primatene Mist is on track for $100 million in sales in 2024, with a 12% annual increase; physician sampling and DTC advertising will be expanded in 2025 to boost brand awareness.

• Primatene's last Orange Book patent expires in January 2026, but manufacturing and regulatory hurdles, plus brand loyalty, are expected to limit generic competition.

• Glucagon injectable sales have shifted to two-thirds diagnostic use, with anti-hypoglycemic sales expected to decline as ready-to-use products gain share.

Margins, manufacturing, and operational updates

• Baqsimi's gross margins are around 70% even with third-party manufacturing; as volume increases, average costs are expected to drop.

• Primatene and glucagon both have gross margins well above the corporate average, with further margin improvements expected as more products are added to the inhalation site.

• Secondary packaging for Baqsimi will transition from Lilly to a third-party, with potential for in-house packaging in the future.

• Epinephrine prefilled syringes are high-margin products; supply bottlenecks have been addressed, enabling increased output and entry into the Canadian market.

Pipeline, M&A, and strategic focus

• Actively seeking M&A opportunities, especially in endocrinology, injectables, inhalation, and intranasal segments to leverage existing sales force and infrastructure.

• Comfortable with leverage under 2x but willing to go above 3x for EBITDA-positive acquisitions.

• Albuterol HFA sales have begun, with meaningful contribution expected in 2025; economies of scale from shared manufacturing with Primatene and future pipeline products are anticipated.

• Pipeline includes AMP-002 (awaiting FDA action, possible decision this year), AMP-015 (teriparatide generic, competitive market), AMP-018 (GLP-1 generic, $2B market), and AMP-004 (insulin aspart biosimilar, refiling planned this year with annual cadence for future filings).

• Focus shifting toward proprietary and 505(b)(2) products, with 1–3 filings targeted for 2025.

• AMP-028 is a biosimilar in development with no current market equivalents; company believes it has a manufacturing advantage.