Amphastar Pharmaceuticals compared to other pharma stocks for long-term growth, facing competition from China
From Yahoo Finance: 2025-04-15 13:45:00
In a recent article, we compared Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) to other top pharma stocks for long-term growth. Big pharma companies are increasingly looking to China for acquisitions, with statistics showing a rise from 0% to 30% in just five years. Chinese firms are gaining traction due to their development skills and cost-effective medications.
Experts believe this trend will continue, impacting the US pharmaceutical industry. The competition from Chinese companies could either benefit or harm American startups. Venture capital scarcity in China is pushing biotech companies to enter licensing agreements with Chinese firms for drug importation, changing the landscape of the industry.
Emily Field, Head of European Pharma Research at Barclays, discussed the pharmaceutical industry’s dynamics, tariffs’ impacts, and obesity medication effectiveness. Companies assembling products overseas and importing them to the US face uncertainties with tariffs, affecting manufacturing costs and earnings calls this quarter.
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) reported a 6% increase in net revenues in Q3 2024, driven by new product introductions. Despite lower net income, the company generated significant cash flow, repurchased shares, and initiated a buyback program. Ongoing discussions with the FDA regarding its insulin pipeline are expected to drive future growth for AMPH.
With 23 hedge funds holding stakes in AMPH as of Q4 2024, the company ranks 10th on the list of best pharma stocks for long-term growth. While the potential of pharmaceutical companies is acknowledged, AI stocks are seen as more promising for higher returns within a shorter timeframe. For a report on a promising AI stock trading at less than 5 times earnings, check out Insider Monkey’s coverage.
Read more: Is Amphastar Pharmaceuticals, Inc. (AMPH) the Best Pharma Stock to Buy for Long Term Growth?