Amphastar Pharmaceuticals Inc. (NASDAQ: AMPH) stock plummeted 10.19% in after-hours trading on Thursday after the company reported lower-than-expected fourth quarter and full-year 2024 earnings, primarily due to higher costs that offset revenue growth.

For the fourth quarter, Amphastar reported adjusted earnings per share of $0.92, missing the consensus estimate of $0.94. Net revenues rose 4.7% year-over-year to $186.5 million but fell short of the $188.8 million estimate. On a GAAP basis, the company reported net income of $38 million, or $0.74 per diluted share, for the quarter.

For the full year 2024, Amphastar posted adjusted EPS of $3.86 on net revenues of $732 million, representing a 14% increase over 2023. GAAP net income for the year was $159.5 million, or $3.06 per diluted share.

While the company saw strong sales growth for key products like BAQSIMI and Primatene MIST, revenues were impacted by increased competition for products like glucagon and epinephrine. Cost of revenues increased 22% in Q4 due to higher labor costs, certain component costs, and the assumption of BAQSIMI distribution expenses from Eli Lilly.

Dr. Jack Zhang, Amphastar's President and CEO, commented, "We are incredibly proud that in 2024, we exceeded our long-term goal of achieving $100 million in annual sales for Primatene MIST, and we look forward to continuing to grow the brand. Furthermore, BAQSIMI showed strong factory sales growth of 12% compared to the fourth quarter of last year. As we look ahead to 2025, we plan to continue developing and growing our proprietary pipeline."

The company currently has four abbreviated new drug applications filed with the FDA targeting products with a market size exceeding $2 billion, along with four biosimilar products in development targeting a $7 billion market, and two generic products targeting a $1.3 billion market.

Amphastar will hold a conference call to discuss its financial results today, February 27, 2025, at 2:00 p.m. Pacific Time.