 Reports Net Revenues of 85.8 Million for the Three Months Ended June 30, 2020RANCHO CUCAMONGA, Calif., Aug. 06, 2020 GLOBE NEWSWIRE -- Amphastar Pharmaceuticals, Inc. NASDAQ: AMPH Amphastar or the Company today reported results for the three months ended June 30, 2020. Second Quarter Highlights Net revenues of 85.8 million for the second quarter GAAP net loss of 0.2 million, or 0.00 per share, for the second quarter Adjusted non-GAAP net income of 7.6 million, or 0.16 per share, for the second quarterDr. Jack Zhang, Amphastars President and Chief Executive Officer, commented: We are pleased with Amphastars second quarter and the first half of the year so far. Primatene Mist has been a strong performer for the Company, while our epinephrine multi-dose vial launch continues to gain momentum. Despite the challenges presented by the COVID-19 pandemic, we remain confident, heading into our catalyst-rich second half of the year. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 in thousands, except per share data Net revenues 85,806 79,047 170,494 158,837 GAAP net loss income attributable to Amphastar 192 47,787 3,757 48,655 Adjusted non-GAAP net income attributable to Amphastar 7,610 4,117 15,993 9,002 GAAP diluted EPS attributable to Amphastar shareholders 0.00 0.96 0.08 0.97 Adjusted non-GAAP diluted EPS attributable to Amphastar shareholders 0.16 0.08 0.33 0.18 ___ Adjusted non-GAAP net income attributable to Amphastar and Adjusted non-GAAP diluted EPS attributable to Amphastar shareholders are non-GAAP financial measures. Please see the discussion in the section entitled Non-GAAP Financial Measures and the reconciliation of GAAP to non-GAAP financial measures in Table III of this press release.Second Quarter Results Three Months Ended June 30, Change 2020 2019 Dollars in thousands Net revenues: Primatene Mist 12,468 2,512 9,956 396 Phytonadione 10,689 12,441 1,752 14 Enoxaparin 10,218 9,838 380 4 Lidocaine 7,608 10,082 2,474 25 Naloxone 8,723 7,833 890 11 Epinephrine 6,957 3,139 3,818 122 Other finished pharmaceutical products 24,272 27,890 3,618 13 Total finished pharmaceutical products net revenues 80,935 73,735 7,200 10 API 4,871 5,312 441 8 Total net revenues 85,806 79,047 6,759 9 Changes in net revenues were primarily driven by: Increased sales of Primatene Mist primarily resulting from the continued success of our nationwide television, radio, and digital marketing campaign Increased epinephrine sales due to the launch of our newly-approved epinephrine injection, USP 30mg30mL multiple-dose vial product as well as increased sales of our epinephrine pre-filled syringes Increased naloxone sales due to higher unit volumes Decreased lidocaine sales due to lower demand, largely due to reductions in elective procedures, in which the jelly form of lidocaine is often used, during the COVID-19 pandemic Decreases in other finished pharmaceutical products were driven by reductions in products frequently used in elective procedures including Cortrosyn, which were partially offset by an increase in sodium bicarbonate as we were able to utilize our new production line approved earlier in the year to meet strong demand Three Months Ended June 30, Change 2020 2019 Dollars in thousands Net revenues 85,806 79,047 6,759 9 Cost of revenues 52,629 46,660 5,969 13 Gross profit 33,177 32,387 790 2 as of net revenues 39 41 Changes in cost of revenues and the resulting decrease to gross margin were primarily driven by: Increase in inventory reserves including a 3.6 million reserve for crude heparin purchases and commitments at our Chinese subsidiary, Amphastar Nanjing Pharmaceuticals, Inc. Increased sales of Primatene Mist and the launch of epinephrine injection multiple-dose vial, both of which have higher margins, partially offset the inventory reserves Three Months Ended June 30, Change 2020 2019 Dollars in thousands Selling, distribution and marketing 4,026 2,992 1,034 35 General and administrative 15,924 12,426 3,498 28 Research and development 16,149 15,996 153 1 Marketing and distribution expenses increased primarily related to Primatene Mist, including the cost of a national digital, television, radio and digital marketing campaign, which began in July 2019 General and administrative expenses increased primarily due to the separation agreement entered into with a former executive, in which we incurred an expense of 4.9 million relating to cash compensation and share-based compensation expense Research and development expenses increased primarily at our ANP subsidiary Three Months Ended June 30, Change 2020 2019 Dollars in thousands Non-operating income expense, net 1,418 60,120 58,702 NM In June 2019, we recognized a gain of 59.9 million relating to the settlement of our patent and antitrust litigation with Momenta Pharmaceuticals, Inc. and Sandoz Inc.Cash flow provided by operating activities for the six months ended June 30, 2020, was 31.6 million.Impact of COVID-19The increase in sales of Primatene Mist and certain hospital products as a result of the COVID-19 pandemic experienced towards the end of the first quarter continued into the early part of the second quarter of 2020. We also noticed a decline in demand for certain products such as Cortrosyn and lidocaine, which are frequently used in elective procedures. The Company has not experienced any significant negative impacts on its cash flows or operations as a result of the COVID-19 pandemic. All of the Companys production facilities continued to operate during the quarter as they had prior to the COVID-19 pandemic with very little change, other than for enhanced safety measures intended to prevent the spread of the virus. It is not possible at this time to estimate the complete impact that the COVID-19 pandemic could have on our business, as the impact will depend on future developments of the pandemic, which are highly uncertain and cannot be predicted.Share Buyback ProgramOn August 4, 2020, the Companys Board of Directors authorized an increase of 20 million to the Companys share buyback program, which is expected to continue for an indefinite period of time. The primary goal of the program is to offset dilution created by the Companys equity compensation programs.Purchases may be made through the open market and private block transactions pursuant to Rule 10b5-1 plans, privately negotiated transactions, or other means, as determined by the Companys management and in accordance with the requirements of the Securities and Exchange Commission and applicable laws.The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions.Pipeline Information The Company currently has five ANDAs filed with the FDA targeting products with a market size of approximately 1.7 billion, three biosimilar products in development targeting products with a market size of approximately 13 billion, and nine generic products in development targeting products with a market size of approximately 12 billion. This market information is based on IQVIA data for the 12 months ended June 30, 2020. The Company is currently developing four proprietary products, including a new drug application for intranasal naloxone.Amphastars Chinese subsidiary, ANP, currently has 14 Drug Master Files, or DMFs, on file with the FDA and is developing several additional DMFs.Company Information Amphastar is a specialty pharmaceutical company that focuses primarily on developing, manufacturing, marketing, and selling technically-challenging generic and proprietary injectable, inhalation, and intranasal products. Additionally, the Company sells insulin API products. Most of the Companys finished products are used in hospital or urgent care clinical settings and are primarily contracted and distributed through group purchasing organizations and drug wholesalers. More information and resources are available at logo and other trademarks or service marks of Amphastar, including, but not limited to Amphastar, Primatene, Amphadase and Cortrosyn, are the property of Amphastar.Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles GAAP, the Company is disclosing non-GAAP financial measures when providing financial results. The Company believes that an evaluation of its ongoing operations and comparisons of its current operations with historical and future operations would be difficult if the disclosure of its financial results were limited to financial measures prepared only in accordance with GAAP. 