1. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)
Number of Hedge Fund Holders In Q2 2024: 72
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is a drug manufacturer that sells drugs to help patients with asthma, diabetes, those undergoing surgery, and others. The fact that it sells generics means that Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) has to operate with high product volume shipments to ensure beefy margins and profitability. The drug maker also benefits from the fact that it operates in the specialty generics market, which is a niche sector of the industry but one that carries high revenue potential. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) also competes in the inhalable products market and makes generics which enable it to capitalize on fast growing markets as soon as patents expire. The company is also rapidly growing its portfolio and secured the FDA’s approval for an asthma generic. Additionally, one of Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)’s leading products, Baqsimi, has patents that will expire in 2036 to provide the firm with a stable source of revenue for more than a decade from now. The firm is also shifting its portfolio composition, and it aims to make proprietary products account for at least 50% of its products by 2025.
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)’s management shared details about its star drug during the Q2 2024 earnings call:
“At the same time, the sales also benefited from initial stocking as we started BAQSIMI distribution in the United States. BAQSIMI has swiftly become a cornerstone of our diabetes portfolio, offering patients a convenient and effective solution to severe hypoglycemia. We believe the glucagon market remains underserved with significant growth potential as BAQSIMI continues to be underutilized among diabetic patients. Similarly, our global transition of BAQSIMI has continued to make progress. Our dedication to broadening our capabilities to provide BAQSIMI’s accessibility for patients worldwide remains steadfast. Furthermore, we persist in prioritizing investments in sales and marketing endeavors to bolster BAQSIMI’s market standing, seizing upon the existing underutilization of glucagon. Looking forward, BAQSIMI remains a primary focal point for Amphastar and we eagerly anticipate its significant impact on individuals navigating diabetes management.”
AMPH is one of the top Piper Sandler stocks seeing favorable technical movements. While we acknowledge the potential of AMPH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMPH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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