Amphastar Pharmaceuticals Inc. (AMPH) saw its stock price plunge over 10% in after-hours trading on November 6th, following the release of its third-quarter 2024 financial results. The company missed analysts' expectations for both revenue and earnings, citing higher costs and inventory-related charges.

For the quarter ended September 30, 2024, Amphastar reported revenue of $191.21 million, up 5.9% year-over-year but falling short of the consensus estimate of $194.69 million. The company's adjusted earnings per share (EPS) came in at $0.96, missing the consensus estimate of $1.01.

The revenue growth was driven by increased sales of key products, including BAQSIMI, a ready-to-use glucagon injection for the treatment of severe hypoglycemia, Primatene MIST, an over-the-counter asthma inhaler, and epinephrine. However, these gains were partially offset by declines in sales of glucagon, enoxaparin, and naloxone.

On the profitability front, Amphastar faced higher labor costs, increased component costs, and charges related to adjusting inventory and purchase commitments to their net realizable value. These factors weighed on the company's gross margin, which contracted to 53.3% from 60% in the year-ago quarter.