Amphastar Pharmaceuticals Unveils Ambitious Expansion Plan to Boost Domestic Manufacturing

Amphastar Pharmaceuticals, a long-standing player in the generics market, has announced a bold initiative to significantly expand its manufacturing capabilities at its headquarters in Rancho Cucamonga, California. The company plans to quadruple its production capacity over the next three to five years, marking its largest-ever investment in infrastructure.

Strategic Shift Towards Proprietary Products

Facing declining revenue and a weakened share price, Amphastar is pivoting its strategy to focus more on its pipeline of proprietary products, including biosimilars. This move comes as the company seeks to reinvigorate investor confidence and solidify its position in the pharmaceutical industry.

The expansion plan is a clear indication of Amphastar's commitment to domestic pharmaceutical manufacturing and its aim to strengthen supply chain resilience. The new production plant will feature expanded automation and advanced technologies, enhancing the company's ability to develop and manufacture both commercial products and pipeline candidates.

Investment in Infrastructure and Workforce

While the exact investment figure remains undisclosed, Amphastar's expansion is set to create new jobs across various departments, including R&D, engineering, manufacturing, and quality control. This investment in human capital aligns with the company's goal of bolstering its domestic capabilities and reducing reliance on overseas supply chains.

Jack Zhang, Amphastar's CEO and founder, emphasized the strategic importance of this move, stating, "Expanding our domestic manufacturing footprint is not only a strategic milestone for Amphastar but a reaffirmation of our commitment to producing essential medicines right here in the United States."

Product Portfolio and Financial Outlook

Amphastar's current product lineup is led by Baqsimi, a nasal powder blood sugar rescue medication acquired from Eli Lilly in 2023 for $500 million upfront, with potential milestone payments of up to $575 million. In the first quarter, Baqsimi generated $38 million in sales, while Primatine MIST, another key product, brought in $29 million.

Despite these strong performers, Amphastar reported a decline in overall revenue, with $171 million reported in the first quarter, representing a decrease both sequentially and year-over-year. The company's expansion plans appear to be a strategic response to these financial challenges, aiming to leverage its strengths in complex injectable and inhaled products to drive future growth.

As Amphastar embarks on this significant expansion, the pharmaceutical industry will be watching closely to see how this investment in domestic manufacturing capabilities will impact the company's competitive position and financial performance in the years to come.