Amphastar Pharmaceuticals, Inc. Wells Fargo 21st Annual Healthcare Conference

Thank you. Thanks for having us.

Yeah. Amphastar's history is that we've worked on some of the most complex generic drugs across many lines, including enoxaparin and glucagon are probably the two that we're most famous for. Both became very large markets for us, but after time, we've had some generic competition. So over time, we've also decided to expand into branded pharmaceuticals as well. So the first entree there was our Primatene MIST, which is the only over-the-counter asthma medicine that was approved by the FDA. And now we purchased BAQSIMI from Eli Lilly and Company, and that's also a glucagon product, a rescue inhaler, but it's one of our keystone products and helps us. We see that as a foundational step in buying that to build a brand new business off of that product.

And then more recently, we've in-licensed several products that are more early-stage, and we have some development programs going on so that we can keep that expansion going on into some other therapeutic areas as well.

Yeah. As we exit this year, for next year, what we've said for this year is that we're expecting to see mid to high single-digit revenue growth in 2026. And while we've been a little bit below that at the beginning of the year, we're very confident hitting those targets. But moving on into next year, what we see is that we're going to get continued growth out of some of the things that were driving our growth this year, including BAQSIMI, ipratropium inhalation, and then also some of the other API products that we're selling out of China now as well.

Okay. Those are going to be some of the early drivers of that growth.

Next year, we're expecting to get insulin aspart approved, and AMP-018, which is our first GLP-1 product, generic.

Yeah. First of all, this 340B issue is that 340B hospitals are hospitals that are serving mostly low-income patients. There's a government program whereby they can buy pharmaceutical branded pharmaceutical products at the lowest available price out there. However, they're not also supposed to take a rebate. What we've seen is sometimes they're taking a discount and a rebate, and they shouldn't be. We didn't really see that happening until about partially in the third quarter last year, but we saw more of that in the fourth quarter and the first quarter. As we investigated it, we found out that this was something that was happening across the pharmaceutical industry. It wasn't specific to us.

We took a look at what other companies were doing and found that many of them had hired third-party consultants who were involved in supporting data-driven identification, validation, and determination of these claims. What we did was that we engaged one of those firms at the beginning of May of this year. Our second quarter results partially reflect the impact of that contract and engaging them. We had part of one quarter available with them, but not the whole quarter. What we're expecting to see is that in the third quarter, we'll see more of an impact. According to them, and they have a bunch of references that we were able to verify with, they were able to eliminate about 80% of the double discounting.

With that, we believe once we get that into place, which should be primarily done by the third quarter, but definitely 100% done by the fourth quarter, we should get back to growth in BAQSIMI because the volume increases have been very strong.