Amphastar Pharmaceuticals (NASDAQ: AMPH) reported Q2 2026 net revenue of $183.9 million, up 5% from $174.4 million, while GAAP diluted EPS increased to $0.67 from $0.64. Higher-margin product launches expanded gross margin to 50.8%, but faster expense growth pushed operating income lower and GAAP net income slipped to $30.3 million.
Core Earnings Data
Revenue growth came primarily from recently launched products, including ipratropium bromide, iron sucrose, and teriparatide. These gains more than offset lower sales of BAQSIMI, Primatene MIST, and glucagon.
Profit trends were mixed. Gross profit increased 8%, but total operating expenses rose 21%, resulting in lower operating income. EPS still increased because the diluted weighted-average share count fell by about 8% year over year.
| Metric | Q2 2026 | Q2 2025 | Year-over-Year Change |
|---|---|---|---|
| Net revenue | $183.9 million | $174.4 million | 5% |
| Gross profit | $93.5 million | $86.5 million | 8% |
| Gross margin | 50.8% | 49.6% | 1.2 percentage points |
| Operating income | $39.7 million | $42.2 million | About -6% |
| Operating margin | About 21.6% | About 24.2% | About -2.6 percentage points |
| GAAP net income | $30.3 million | $31.0 million | About -2% |
| GAAP diluted EPS | $0.67 | $0.64 | About 5% |
| Adjusted net income | $40.8 million | $40.9 million | Approximately flat |
| Adjusted diluted EPS | $0.91 | $0.85 | About 7% |
Adjusted results exclude items including intangible asset amortization and share-based compensation. Amphastar recorded $6.3 million of amortization and $7.1 million of share-based compensation during the quarter.
Business and Product Performance
The product portfolio showed significant divergence. Newer products drove overall growth, while pricing pressure and competition weighed on several established products.
| Product | Q2 2026 Revenue | Q2 2025 Revenue | Change | Main Disclosed Driver |
|---|---|---|---|---|
| BAQSIMI | $45.5 million | $46.7 million | -3% | Lower average selling price partly offset by higher volume |
| Primatene MIST | $21.0 million | $22.9 million | -8% | Timing of customer purchases |
| Epinephrine | $15.9 million | $16.2 million | -2% | Multi-dose vial competition offset by pre-filled syringe demand |
| Lidocaine | $15.0 million | $15.0 million | Flat | No material change disclosed |
| Glucagon | $11.9 million | $20.6 million | -42% | Lower pricing, reduced volume, and a shift toward ready-to-use products |
| Ipratropium bromide | $8.4 million | — | New product | Launched in April 2026 |
| Other products | $66.2 million | $53.1 million | 25% | New launches and higher demand across several products |
BAQSIMI’s average selling price was affected by gross-to-net discounts, chargebacks, rebates, and customer mix, reducing sales by approximately $8.1 million. Higher unit volumes contributed $6.9 million and limited the overall decline.
Glucagon was the largest individual drag, with lower pricing reducing revenue by $7.5 million and lower volume accounting for another $1.2 million. Amphastar attributed the decline to competition and continued adoption of ready-to-use glucagon products such as BAQSIMI.
Other-product revenue increased by $13.1 million. Iron sucrose and teriparatide contributed year-over-year increases of $3.5 million and $4.5 million, respectively, while albuterol volumes and demand for phytonadione and sodium bicarbonate also increased.
The company also reached $175.0 million in BAQSIMI sales for the applicable contract year, triggering its first annual sales milestone under the asset purchase agreement with Eli Lilly. A $100.0 million payment is due to Lilly in Q3 2026.
Amphastar reported one abbreviated new drug application and one biosimilar insulin candidate filed with the FDA. It also has two additional biosimilars and three generic products in development, alongside multiple proprietary candidates.
Higher-Margin Launches Lifted Gross Margin, but Operating Costs Reduced Profit
Gross margin increased from 49.6% to 50.8% because ipratropium bromide, iron sucrose, teriparatide, and phytonadione carried higher margins. That benefit outweighed lower average selling prices for BAQSIMI, glucagon, and the epinephrine multi-dose vial, as well as increased manufacturing costs related to the Rancho Cucamonga facility expansion.
However, operating expenses grew considerably faster than revenue. Selling, distribution, and marketing expense rose 30% to $13.3 million, reflecting higher freight costs and additional BAQSIMI marketing. General and administrative expense also increased 30% to $18.2 million due to legal costs, implementation of a new ERP system, and personnel expenses.
Research and development expense increased 10% to $22.2 million, mainly because of clinical trial spending on the insulin pipeline and higher personnel costs. Together, these increases lifted total operating expenses to $53.7 million from $44.3 million, causing operating income to decline despite the higher gross margin.
Net non-operating expense narrowed to $1.2 million from $2.8 million, partly cushioning the operating-income decline. Amphastar attributed the improvement mainly to foreign-currency movements and mark-to-market adjustments on its interest-rate swap.
Cash Flow and Balance Sheet
Operating cash flow was $99.2 million for the first six months of 2026; the company did not provide a year-over-year comparison in the release. This is a year-to-date figure rather than a quarterly cash-flow measure.
At June 30, Amphastar held $223.6 million in cash and cash equivalents and $66.5 million in short-term investments, for a combined $290.1 million. That compared with $282.8 million at the end of 2025. Net long-term debt plus the current portion was approximately $612.1 million.
Current liabilities increased to $263.2 million from $158.2 million at year-end, driven largely by an increase in accounts payable and accrued liabilities. The separate $100.0 million BAQSIMI milestone payment due in Q3 makes liquidity and cash deployment important items to monitor in the next reporting period.
Risks Investors Need to Watch
- Pricing and gross-to-net pressure: Lower average selling prices affected BAQSIMI, glucagon, and epinephrine multi-dose vials. Continued discount, rebate, or customer-mix pressure could limit revenue and margin growth.
- Competition in established products: Glucagon revenue fell 42%, while competition also reduced sales of the epinephrine multi-dose vial. Further volume or pricing pressure could offset gains from new launches.
- Operating expenses rising faster than revenue: Revenue increased 5%, but total operating expenses rose 21%. Continued growth in marketing, legal, ERP, personnel, and clinical-trial costs could keep operating margins under pressure.
- Near-term cash requirements: The $100.0 million BAQSIMI milestone payment due in Q3 is significant relative to Amphastar’s cash position, while total debt remained above $600 million.
- Dependence on product-launch execution and mix: Quarterly growth relied heavily on newer, higher-margin products. Their ability to sustain demand will influence whether gross-margin improvement continues.
Summary
Amphastar’s Q2 2026 revenue and gross margin benefited from a broader mix of recently launched, higher-margin products, offsetting weakness in glucagon and pricing pressure across parts of the portfolio. The main limitation was expense growth, which caused operating income to decline even as gross profit increased. Investors should monitor pricing in established products, the performance of recent launches, expense control, and cash deployment following the BAQSIMI milestone payment.
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