330000Accelerated Filerfalse0000falseAmphastar Pharmaceuticals, Inc.--12-31false0001297184Q3falseYestrueDEfalse2021-09-3000P1YP10Y0001297184us-gaap:SalesReturnsAndAllowancesMember2021-01-012021-09-300001297184us-gaap:SalesReturnsAndAllowancesMember2020-01-012020-09-300001297184us-gaap:SalesReturnsAndAllowancesMember2021-09-300001297184us-gaap:SalesReturnsAndAllowancesMember2020-12-310001297184us-gaap:SalesReturnsAndAllowancesMember2020-09-300001297184us-gaap:SalesReturnsAndAllowancesMember2019-12-310001297184amph:November2014ShareRepurchasePlanMember2021-07-012021-09-300001297184amph:November2014ShareRepurchasePlanMember2021-01-012021-09-300001297184amph:November2014ShareRepurchasePlanMember2020-07-012020-09-300001297184amph:November2014ShareRepurchasePlanMember2020-01-012020-09-300001297184amph:AnpMember2021-07-012021-07-310001297184amph:November2014ShareRepurchasePlanMember2021-08-030001297184amph:November2014ShareRepurchasePlanMember2021-09-300001297184us-gaap:TreasuryStockMember2021-07-012021-09-300001297184us-gaap:TreasuryStockMember2021-04-012021-06-300001297184us-gaap:TreasuryStockMember2021-01-012021-03-310001297184us-gaap:TreasuryStockMember2020-07-012020-09-300001297184us-gaap:TreasuryStockMember2020-04-012020-06-300001297184us-gaap:TreasuryStockMember2020-01-012020-03-310001297184us-gaap:CommonStockMember2021-07-012021-09-300001297184us-gaap:CommonStockMember2021-04-012021-06-300001297184us-gaap:CommonStockMember2020-07-012020-09-300001297184us-gaap:CommonStockMember2020-04-012020-06-300001297184us-gaap:CommonStockMember2020-01-012020-03-3100012971842021-06-3000012971842021-03-310001297184us-gaap:NoncontrollingInterestMember2020-09-3000012971842020-06-3000012971842020-03-310001297184us-gaap:RetainedEarningsMember2021-09-300001297184us-gaap:ParentMember2021-09-300001297184us-gaap:AdditionalPaidInCapitalMember2021-09-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001297184us-gaap:RetainedEarningsMember2021-06-300001297184us-gaap:ParentMember2021-06-300001297184us-gaap:NoncontrollingInterestMember2021-06-300001297184us-gaap:AdditionalPaidInCapitalMember2021-06-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001297184us-gaap:RetainedEarningsMember2021-03-310001297184us-gaap:ParentMember2021-03-310001297184us-gaap:NoncontrollingInterestMember2021-03-310001297184us-gaap:AdditionalPaidInCapitalMember2021-03-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001297184us-gaap:RetainedEarningsMember2020-12-310001297184us-gaap:ParentMember2020-12-310001297184us-gaap:NoncontrollingInterestMember2020-12-310001297184us-gaap:AdditionalPaidInCapitalMember2020-12-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001297184us-gaap:RetainedEarningsMember2020-09-300001297184us-gaap:ParentMember2020-09-300001297184us-gaap:AdditionalPaidInCapitalMember2020-09-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001297184us-gaap:RetainedEarningsMember2020-06-300001297184us-gaap:ParentMember2020-06-300001297184us-gaap:NoncontrollingInterestMember2020-06-300001297184us-gaap:AdditionalPaidInCapitalMember2020-06-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001297184us-gaap:RetainedEarningsMember2020-03-310001297184us-gaap:ParentMember2020-03-310001297184us-gaap:NoncontrollingInterestMember2020-03-310001297184us-gaap:AdditionalPaidInCapitalMember2020-03-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001297184us-gaap:RetainedEarningsMember2019-12-310001297184us-gaap:ParentMember2019-12-310001297184us-gaap:NoncontrollingInterestMember2019-12-310001297184us-gaap:AdditionalPaidInCapitalMember2019-12-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001297184us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300001297184us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-06-3000012971842021-01-012021-06-300001297184amph:EmployeeMemberamph:The2015EquityIncentivePlanMember2021-07-012021-09-300001297184amph:EmployeeMemberamph:Anp2018EquityIncentivePlanMemberamph:EquityIncentivePlanTerminationMember2021-06-300001297184amph:EmployeeMemberamph:Anp2018EquityIncentivePlanMember2021-09-300001297184amph:EmployeeStockPurchasePlan2014Member2021-09-300001297184amph:The2015EquityIncentivePlanMember2021-01-012021-01-010001297184us-gaap:RestrictedStockUnitsRSUMember2020-12-310001297184amph:PresidentGeneralCounselAndMemberOfBoardOfDirectorsMemberus-gaap:RestrictedStockUnitsRSUMember2020-04-012020-04-300001297184amph:PresidentGeneralCounselAndMemberOfBoardOfDirectorsMemberus-gaap:EmployeeStockOptionMember2020-04-012020-04-300001297184srt:MinimumMemberamph:EmployeeMemberamph:The2015EquityIncentivePlanMember2021-07-012021-09-300001297184srt:MaximumMemberamph:EmployeeMemberamph:The2015EquityIncentivePlanMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PhytonadioneMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:OtherFinishedPharmaceuticalProductsMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:NaloxoneMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:LidocaineMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:GlucagonMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EpinephrineMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EnoxaparinMember2021-07-012021-09-300001297184country:US2021-07-012021-09-300001297184country:FR2021-07-012021-09-300001297184country:CN2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PhytonadioneMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:OtherFinishedPharmaceuticalProductsMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:NaloxoneMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:LidocaineMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:GlucagonMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EpinephrineMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EnoxaparinMember2021-01-012021-09-300001297184country:US2021-01-012021-09-300001297184country:FR2021-01-012021-09-300001297184country:CN2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PhytonadioneMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:OtherFinishedPharmaceuticalProductsMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:NaloxoneMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:LidocaineMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EpinephrineMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EnoxaparinMember2020-07-012020-09-300001297184country:US2020-07-012020-09-300001297184country:FR2020-07-012020-09-300001297184country:CN2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PhytonadioneMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:OtherFinishedPharmaceuticalProductsMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:NaloxoneMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:LidocaineMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EpinephrineMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:EnoxaparinMember2020-01-012020-09-300001297184country:US2020-01-012020-09-300001297184country:FR2020-01-012020-09-300001297184country:CN2020-01-012020-09-300001297184amph:ServiceFeeMemberamph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-09-300001297184us-gaap:MachineryAndEquipmentMember2021-09-300001297184us-gaap:LeaseholdImprovementsMember2021-09-300001297184us-gaap:LandMember2021-09-300001297184us-gaap:ConstructionInProgressMember2021-09-300001297184us-gaap:BuildingMember2021-09-300001297184amph:FurnitureFixturesAndVehiclesMember2021-09-300001297184us-gaap:MachineryAndEquipmentMember2020-12-310001297184us-gaap:LeaseholdImprovementsMember2020-12-310001297184us-gaap:LandMember2020-12-310001297184us-gaap:ConstructionInProgressMember2020-12-310001297184us-gaap:BuildingMember2020-12-310001297184amph:FurnitureFixturesAndVehiclesMember2020-12-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001297184country:US2021-09-300001297184country:FR2021-09-300001297184country:CN2021-09-300001297184country:US2020-12-310001297184country:FR2020-12-310001297184country:CN2020-12-310001297184us-gaap:RetainedEarningsMember2021-04-012021-06-300001297184us-gaap:RetainedEarningsMember2021-01-012021-03-310001297184us-gaap:RetainedEarningsMember2020-07-012020-09-300001297184us-gaap:RetainedEarningsMember2020-04-012020-06-300001297184us-gaap:RetainedEarningsMember2020-01-012020-03-310001297184amph:CommitmentsToPurchaseEquipmentAndRawMaterialsMember2021-01-012021-09-300001297184amph:TermLoanDueAugust2026Memberamph:CapitalOneNationalAssociationMember2021-09-300001297184amph:MortgagePayableDueJune2027Memberamph:EastWestBankMember2021-09-300001297184amph:FrenchGovernmentLoan4DueDecember2026Memberamph:SeineNormandieWaterAgencyMember2021-09-300001297184amph:WorkingCapitalLoanDueJune2021Memberamph:EverbrightBankOfChinaMember2020-12-310001297184amph:MortgagePayableDueOctober2026Memberamph:EastWestBankMember2020-12-310001297184amph:MortgagePayableDueMay2021Memberamph:EastWestBankMember2020-12-310001297184amph:MortgagePayableDueJune2027Memberamph:EastWestBankMember2020-12-310001297184amph:MortgagePayableDueAugust2027Memberamph:CathayBankMember2020-12-310001297184amph:LineOfCreditDueOctober2021Memberamph:BankOfNanjingMember2020-12-310001297184amph:LineOfCreditDueAugust2021Memberamph:ChinaMerchantBankMember2020-12-310001297184amph:FrenchGovernmentLoanDueJuly2021Memberamph:SeineNormandieWaterAgencyMember2020-12-310001297184amph:FrenchGovernmentLoan4DueDecember2026Memberamph:SeineNormandieWaterAgencyMember2020-12-310001297184amph:EquipmentLoanDueJune2021Memberamph:EastWestBankMember2020-12-310001297184amph:EquipmentLoanDueFebruary2024Memberamph:EastWestBankMember2020-12-310001297184amph:EquipmentLoanDueDecember2022Memberamph:EastWestBankMember2020-12-310001297184amph:EquipmentLineOfCreditDueSeptember2025Memberamph:EastWestBankMember2020-12-310001297184amph:AcquisitionLoanDueJune2024Memberamph:CathayBankMember2020-12-310001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMemberus-gaap:SettledLitigationMember2021-06-302021-06-300001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMember2021-05-032021-05-030001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMember2021-05-012021-05-310001297184amph:RamirezVsAmphastarPharmaceuticalsIncMember2021-04-052021-04-050001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMemberus-gaap:SettledLitigationMember2020-11-132020-11-130001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMemberus-gaap:SettledLitigationMember2020-01-012020-12-310001297184amph:RamirezVsAmphastarPharmaceuticalsIncMember2021-03-310001297184us-gaap:RevolvingCreditFacilityMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184us-gaap:LineOfCreditMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184us-gaap:SecuredDebtMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184amph:AnpMemberamph:CrudeHeparinMember2020-07-012020-09-300001297184amph:AnpMemberamph:CrudeHeparinMember2020-01-012020-09-300001297184amph:EnoxaparinMember2021-01-012021-09-300001297184amph:EnoxaparinMember2020-01-012020-09-300001297184us-gaap:TrademarksMember2021-09-300001297184us-gaap:TrademarksMember2020-12-310001297184us-gaap:MunicipalBondsMember2021-09-300001297184us-gaap:CorporateBondSecuritiesMember2021-09-300001297184us-gaap:MunicipalBondsMember2020-12-310001297184us-gaap:CorporateBondSecuritiesMember2020-12-310001297184amph:FinishedPharmaceuticalProductsSegmentMember2021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMember2020-12-310001297184amph:InternationalMedicationSystemsUkLimitedMemberamph:AcquiredInternationalProductRightsMember2021-01-012021-09-300001297184us-gaap:UseRightsMember2021-01-012021-09-300001297184us-gaap:PatentsMember2021-01-012021-09-300001297184amph:InternationalMedicationSystemsUkLimitedMemberamph:AcquiredInternationalProductRightsMember2020-01-012020-12-310001297184us-gaap:UseRightsMember2020-01-012020-12-310001297184us-gaap:PatentsMember2020-01-012020-12-3100012971842020-01-012020-12-310001297184amph:InternationalMedicationSystemsUkLimitedMemberamph:AcquiredInternationalProductRightsMember2021-09-300001297184us-gaap:UseRightsMember2021-09-300001297184us-gaap:PatentsMember2021-09-300001297184amph:InternationalMedicationSystemsUkLimitedMemberamph:AcquiredInternationalProductRightsMember2020-12-310001297184us-gaap:UseRightsMember2020-12-310001297184us-gaap:PatentsMember2020-12-310001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-09-300001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-09-300001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-07-310001297184amph:The2015EquityIncentivePlanMember2021-09-300001297184amph:EmployeeConsultantAndDirectorsStockOptionsMember2021-09-300001297184amph:EmployeeConsultantAndDirectorsStockOptionsMember2021-01-012021-09-300001297184amph:AnpMember2021-01-012021-09-300001297184us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:LineOfCreditMemberus-gaap:InterestRateSwapMemberamph:CapitalOneNationalAssociationMember2021-08-050001297184us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184amph:FinishedPharmaceuticalProductsSegmentMember2021-07-012021-09-300001297184amph:ActivePharmaceuticalIngredientSegmentMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMember2021-01-012021-09-300001297184amph:ActivePharmaceuticalIngredientSegmentMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMember2020-07-012020-09-300001297184amph:ActivePharmaceuticalIngredientSegmentMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMember2020-01-012020-09-300001297184amph:ActivePharmaceuticalIngredientSegmentMember2020-01-012020-09-300001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-07-012021-09-300001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-01-012021-09-300001297184us-gaap:SecuredDebtMemberamph:CapitalOneNationalAssociationMember2021-09-300001297184srt:MinimumMemberus-gaap:SecuredDebtMemberamph:CapitalOneNationalAssociationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-08-042021-08-040001297184srt:MaximumMemberus-gaap:SecuredDebtMemberamph:CapitalOneNationalAssociationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-08-042021-08-040001297184us-gaap:LineOfCreditMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184us-gaap:LineOfCreditMemberus-gaap:DebtInstrumentRedemptionPeriodThreeMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184us-gaap:LineOfCreditMemberus-gaap:DebtInstrumentRedemptionPeriodOneMemberamph:CapitalOneNationalAssociationMember2021-08-040001297184amph:McKessonMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001297184amph:CardinalHealthMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001297184amph:AmerisourceBergenMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001297184amph:McKessonMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:McKessonMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:CardinalHealthMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:CardinalHealthMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:AmerisourceBergenMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:AmerisourceBergenMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184amph:McKessonMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001297184amph:CardinalHealthMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001297184amph:AmerisourceBergenMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001297184amph:McKessonMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-310001297184amph:CardinalHealthMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-310001297184amph:AmerisourceBergenMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-310001297184amph:McKessonMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001297184amph:CardinalHealthMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001297184amph:AmerisourceBergenMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001297184us-gaap:TreasuryStockMember2021-09-300001297184us-gaap:CommonStockMember2021-09-300001297184us-gaap:TreasuryStockMember2021-06-300001297184us-gaap:CommonStockMember2021-06-300001297184us-gaap:TreasuryStockMember2021-03-310001297184us-gaap:CommonStockMember2021-03-310001297184us-gaap:TreasuryStockMember2020-12-310001297184us-gaap:CommonStockMember2020-12-310001297184us-gaap:TreasuryStockMember2020-09-300001297184us-gaap:CommonStockMember2020-09-300001297184us-gaap:TreasuryStockMember2020-06-300001297184us-gaap:CommonStockMember2020-06-300001297184us-gaap:TreasuryStockMember2020-03-310001297184us-gaap:CommonStockMember2020-03-310001297184us-gaap:TreasuryStockMember2019-12-310001297184us-gaap:CommonStockMember2019-12-310001297184us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:FairValueMeasurementsRecurringMember2021-09-300001297184us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:FairValueMeasurementsRecurringMember2020-12-310001297184us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001297184us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001297184us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001297184us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001297184us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001297184us-gaap:CostOfSalesMember2021-07-012021-09-300001297184amph:EmployeeStockPurchasePlan2014Member2021-07-012021-09-300001297184us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001297184us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001297184us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001297184us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001297184us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001297184us-gaap:CostOfSalesMember2021-01-012021-09-300001297184amph:EmployeeStockPurchasePlan2014Member2021-01-012021-09-300001297184us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001297184us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001297184us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300001297184us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001297184us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001297184us-gaap:CostOfSalesMember2020-07-012020-09-300001297184amph:EmployeeStockPurchasePlan2014Member2020-07-012020-09-300001297184amph:Anp2018EquityIncentivePlanMember2020-07-012020-09-300001297184amph:PresidentGeneralCounselAndMemberOfBoardOfDirectorsMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001297184amph:PresidentGeneralCounselAndMemberOfBoardOfDirectorsMemberus-gaap:EmployeeStockOptionMember2020-01-012020-09-300001297184us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001297184us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001297184us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300001297184us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001297184us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001297184us-gaap:CostOfSalesMember2020-01-012020-09-300001297184amph:EmployeeStockPurchasePlan2014Member2020-01-012020-09-300001297184amph:Anp2018EquityIncentivePlanMember2020-01-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PrimatenemistMember2021-07-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PrimatenemistMember2021-01-012021-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PrimatenemistMember2020-07-012020-09-300001297184amph:FinishedPharmaceuticalProductsSegmentMemberamph:PrimatenemistMember2020-01-012020-09-300001297184us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001297184us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001297184us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001297184us-gaap:NoncontrollingInterestMember2020-01-012020-03-3100012971842021-11-020001297184us-gaap:ParentMember2021-04-012021-06-300001297184us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000012971842021-04-012021-06-300001297184us-gaap:ParentMember2021-01-012021-03-310001297184us-gaap:CommonStockMember2021-01-012021-03-310001297184us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100012971842021-01-012021-03-310001297184us-gaap:ParentMember2020-07-012020-09-300001297184us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001297184us-gaap:ParentMember2020-04-012020-06-300001297184us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000012971842020-04-012020-06-300001297184us-gaap:ParentMember2020-01-012020-03-310001297184us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100012971842020-01-012020-03-310001297184us-gaap:RestrictedStockUnitsRSUMember2021-09-300001297184amph:EmployeeMemberamph:Anp2018EquityIncentivePlanMember2021-07-012021-09-300001297184amph:RestrictedStockUnitsIssuedAsCompensationMember2021-01-012021-09-300001297184us-gaap:AccountsReceivableMember2021-01-012021-09-300001297184us-gaap:AccountsPayableAndAccruedLiabilitiesMember2021-01-012021-09-300001297184us-gaap:AccountsReceivableMember2020-01-012020-12-310001297184us-gaap:AccountsPayableAndAccruedLiabilitiesMember2020-01-012020-12-3100012971842020-09-3000012971842019-12-310001297184amph:AnpMemberamph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-05-012021-05-310001297184amph:NanjingHanxinPharmaceuticalTechnologyCoLtdMember2021-09-012021-09-300001297184amph:AnpMember2021-08-012021-08-310001297184amph:AnpMember2021-05-012021-05-310001297184us-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001297184us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001297184us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001297184us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-310001297184us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001297184amph:AmphastarPharmaceuticalsInc.VsAventisPharmaSaMemberus-gaap:SettledLitigationMember2021-04-012021-06-300001297184amph:AnpMember2018-07-012018-07-310001297184amph:EmployeeStockPurchasePlan2014Member2021-05-012021-05-3100012971842021-01-012021-09-300001297184amph:EmployeeAndNonEmployeeStockOptionsMember2021-07-012021-09-300001297184amph:EmployeeAndNonEmployeeStockOptionsMember2021-01-012021-09-300001297184amph:EmployeeAndNonEmployeeStockOptionsMember2020-07-012020-09-300001297184amph:EmployeeAndNonEmployeeStockOptionsMember2020-01-012020-09-3000012971842020-01-012020-09-300001297184us-gaap:RetainedEarningsMember2021-07-012021-09-300001297184us-gaap:ParentMember2021-07-012021-09-300001297184us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001297184us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001297184us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-3000012971842021-07-012021-09-300001297184us-gaap:NoncontrollingInterestMember2020-07-012020-09-3000012971842020-07-012020-09-3000012971842021-09-3000012971842020-12-31iso4217:USDiso4217:USDxbrli:sharesxbrli:pureamph:itemxbrli:sharesamph:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission file number 001-36509

AMPHASTAR PHARMACEUTICALS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

 

33-0702205

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer
Identification No.)

11570 6th Street

 

Rancho Cucamonga, CA

 

91730

(Address of principal executive offices)

(zip code)

(909) 980-9484

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Securities registered pursuant to Section 12(b) of the Act:

T

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

AMPH

The NASDAQ Stock Market LLC

The number of shares outstanding of the registrant’s only class of common stock as of November 2, 2021 was 47,849,145.

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

TABLE OF CONTENTS

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021

Special Note About Forward-Looking Statements

Part I. FINANCIAL INFORMATION

PAGE

Item 1. Financial Statements (unaudited):

Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020

1

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020

2

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2021 and 2020

3

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2021 and 2020

4

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020

6

Notes to Condensed Consolidated Financial Statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

Item 3. Quantitative and Qualitative Disclosure about Market Risk

43

Item 4. Controls and Procedures

43

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

44

Item 1A. Risk Factors

44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

48

Item 3. Defaults Upon Senior Securities

48

Item 4. Mine Safety Disclosures

48

Item 5. Other Information

48

Item 6. Exhibits

49

Signatures

50

Table of Contents

SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or Quarterly Report, contains “forward-looking statements” that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the following words: “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these identifying words. Forward-looking statements relate to future events or future financial performance or condition and involve known and unknown risks, uncertainties and other factors that could cause actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements about:

our expectations regarding the sales and marketing of our products;
our expectations regarding our manufacturing and production and the integrity of our supply chain for our products, including the risks associated with our single source suppliers;
the impact of the COVID-19 pandemic and related responses of business and governments to the pandemic on our operations and personnel, and on commercial activity and demand across our business operations and results of operations;
interruptions to our manufacturing and production as a result of natural catastrophic events or other causes beyond our control such as power disruptions or widespread disease outbreaks, such as the COVID-19 pandemic;
global, national and local economic and market conditions, specifically with respect to geopolitical uncertainty, and the COVID-19 pandemic;
the timing and likelihood of U.S. Food and Drug Administration, or FDA, approvals and regulatory actions on our product candidates, manufacturing activities and product marketing activities;
our ability to advance product candidates in our platforms into successful and completed clinical trials and our subsequent ability to successfully commercialize our product candidates;
our ability to compete in the development and marketing of our products and product candidates;
our expectations regarding the business expansion plans for our Chinese subsidiary, Amphastar Nanjing Pharmaceuticals, Inc., or ANP, including its restructuring;
the potential for adverse application of environmental, health and safety and other laws and regulations on our operations;
our expectations for market acceptance of our new products and proprietary drug delivery technologies, as well as those of our active pharmaceutical ingredient, or API, customers;
the potential for our marketed products to be withdrawn due to patient adverse events or deaths, or if we fail to secure FDA approval for products subject to the Prescription Drug Wrap-Up program;
our expectations in obtaining insurance coverage and adequate reimbursement for our products from third-party payers;
the amount of price concessions or exclusion of suppliers adversely affecting our business;
our ability to establish and maintain intellectual property protection for our products and our ability to successfully defend our intellectual property in cases of alleged infringement;
the implementation of our business strategies, product development strategies and technology utilization;
the potential for exposure to product liability claims;
future acquisitions, divestitures or investments, including the anticipated benefits of such acquisitions, divestitures or investments;
our ability to expand internationally;
economic and industry trends and trend analysis;
our ability to remain in compliance with laws and regulations that currently apply or become applicable to our business both in the United States and internationally;
the impact of trade tariffs, export or import restrictions, or other trade barriers;
the impact of Patient Protection and Affordable Care Act (as amended) and other legislative and regulatory healthcare reforms in the countries in which we operate including the potential for drug price controls;
the impact of global and domestic tax reforms, including the Tax Cuts and Jobs Act of 2017, or the Tax Act, as amended by the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act;
the timing for completion and the validation of the new construction at our ANP and Amphastar facilities;
the timing and extent of share buybacks; and
our financial performance expectations, including our expectations regarding our backlog, revenue, cost of revenue, gross profit or gross margin, operating expenses, including changes in research and development, sales and marketing and general and administrative expenses, and our ability to achieve and maintain future profitability.

You should read this Quarterly Report and the documents that we reference elsewhere in this Quarterly Report completely and with the understanding that our actual results may differ materially from what we expect as expressed or implied by our forward-looking statements. In light of the significant risks and uncertainties to which our forward-looking statements are subject, you should not place

Table of Contents

undue reliance on or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. In particular, the extent of COVID-19’s impact on our business will depend on several factors, including the severity, duration and extent of the pandemic, all of which continue to evolve and remain uncertain at this time. We discuss many of these risks and uncertainties in greater detail in this Quarterly Report and in our Annual Report on Form 10-K for the year ended December 31, 2020, particularly in Item 1A. “Risk Factors.” These forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report regardless of the time of delivery of this Quarterly Report, and such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Quarterly Report.

Unless expressly indicated or the context requires otherwise, references in this Quarterly Report to “Amphastar,” “the Company,” “we,” “our,” and “us” refer to Amphastar Pharmaceuticals, Inc. and our subsidiaries.

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

    

September 30, 

    

December 31, 

 

2021

2020

 

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

106,610

$

92,642

Restricted cash

235

1,865

Short-term investments

8,021

12,977

Restricted short-term investments

 

2,200

 

2,200

Accounts receivable, net

 

78,090

 

66,005

Inventories

 

100,240

 

96,831

Income tax refunds and deposits

 

520

 

385

Prepaid expenses and other assets

 

7,755

 

6,777

Total current assets

 

303,671

 

279,682

Property, plant, and equipment, net

 

242,924

 

260,055

Finance lease right-of-use assets

428

612

Operating lease right-of-use assets

27,663

20,042

Equity method investment

4,193

Goodwill and intangible assets, net

 

39,192

 

40,615

Other assets

 

11,610

 

5,250

Deferred tax assets

 

21,996

 

24,980

Total assets

$

651,677

$

631,236

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

88,911

$

95,504

Income taxes payable

 

3,960

 

1,077

Current portion of long-term debt

 

2,256

 

12,263

Current portion of operating lease liabilities

2,862

3,357

Total current liabilities

 

97,989

 

112,201

Long-term reserve for income tax liabilities

 

4,709

 

4,709

Long-term debt, net of current portion and unamortized debt issuance costs

 

75,552

 

34,186

Long-term operating lease liabilities, net of current portion

25,466

17,464

Deferred tax liabilities

 

2,901

 

741

Other long-term liabilities

 

14,884

 

13,212

Total liabilities

 

221,501

 

182,513

Commitments and contingencies

Stockholders’ equity:

Preferred stock: par value $0.0001; 20,000,000 shares authorized; no shares issued and outstanding

 

 

Common stock: par value $0.0001; 300,000,000 shares authorized; 56,051,662 and 47,982,690 shares issued and outstanding as of September 30, 2021 and 54,760,922 and 47,495,439 shares issued and outstanding as of December 31, 2020, respectively

 

6

 

5

Additional paid-in capital

 

412,917

 

410,061

Retained earnings

 

160,577

 

117,773

Accumulated other comprehensive loss

 

(6,277)

 

(3,721)

Treasury stock

 

(137,047)

 

(121,812)

Total Amphastar Pharmaceuticals, Inc. stockholders’ equity

 

430,176

 

402,306

Non-controlling interests

46,417

Total equity

430,176

448,723

Total liabilities and stockholders’ equity

$

651,677

$

631,236

See Accompanying Notes to Condensed Consolidated Financial Statements.

-1-

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except per share data)

Three Months Ended

Nine Months Ended

 

September 30, 

September 30, 

    

2021

    

2020

    

2021

    

2020

 

Net revenues

$

112,198

$

83,431

$

316,881

$

253,925

Cost of revenues

 

61,015

 

46,923

 

173,376

 

147,417

Gross profit

 

51,183

 

36,508

 

143,505

 

106,508

Operating expenses:

Selling, distribution, and marketing

 

4,745

 

3,673

 

13,411

10,993

General and administrative

 

10,910

 

11,674

 

40,813

38,344

Research and development

 

10,759

 

17,644

 

43,646

49,096

Total operating expenses

 

26,414

 

32,991

 

97,870

 

98,433

Income from operations

 

24,769

 

3,517

 

45,635

 

8,075

Non-operating income:

Interest income

 

141

 

161

 

444

512

Interest expense

 

(527)

 

(175)

 

(717)

(286)

Other income, net

 

13,263

 

3,575

 

11,615

3,078

Total non-operating income, net

 

12,877

 

3,561

 

11,342

 

3,304

Income before income taxes

 

37,646

 

7,078

 

56,977

 

11,379

Income tax provision

 

6,686

 

2,285

 

13,436

4,490

Net income

$

30,960

$

4,793

$

43,541

$

6,889

Net income (loss) attributable to non-controlling interests

$

1,412

$

874

$

1,185

$

(787)

Net income attributable to Amphastar Pharmaceuticals, Inc.

$

29,548

$

3,919

$

42,356

$

7,676

Net income per share attributable to Amphastar Pharmaceuticals, Inc. stockholders:

Basic

$

0.62

$

0.08

$

0.89

$

0.16

Diluted

$

0.59

$

0.08

$

0.85

$

0.16

Weighted-average shares used to compute net income per share attributable to Amphastar Pharmaceuticals, Inc. stockholders:

Basic

 

48,022

 

47,496

 

47,758

 

46,886

Diluted

 

50,009

 

49,848

 

49,693

 

48,922

See Accompanying Notes to Condensed Consolidated Financial Statements.

-2-

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited; in thousands)

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2021

    

2020

    

2021

    

2020

 

Net income attributable to Amphastar Pharmaceuticals, Inc.

$

29,548

$

3,919

$

42,356

$

7,676

Other comprehensive income (loss) attributable to Amphastar Pharmaceuticals, Inc., net of income taxes

Reclassification of adjustment for amounts included in net income

(362)

(362)

Foreign currency translation adjustment

 

(984)

 

695

 

(2,194)

209

Total other comprehensive income (loss) attributable to Amphastar Pharmaceuticals, Inc.

 

(1,346)

 

695

 

(2,556)

 

209

Total comprehensive income attributable to Amphastar Pharmaceuticals, Inc.

$

28,202

$

4,614

$

39,800

$

7,885

See Accompanying Notes to Condensed Consolidated Financial Statements.

-3-

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited; in thousands, except share data)

Common Stock

Accumulated

Treasury Stock

Total

Additional

Other

Amphastar

Non-

Paid-in

Retained

Comprehensive

Stockholders'

controlling

Shares

Amount

Capital

Earnings

loss

Shares

Amount

Equity

Interest

Total

Balance as of December 31, 2020

 

54,760,922

$

5

$

410,061

$

117,773

$

(3,721)

 

(7,265,483)

$

(121,812)

$

402,306

$

46,417

$

448,723

Net income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

5,041

 

 

 

 

5,041

 

 

5,041

Other comprehensive loss attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

(1,921)

 

 

 

(1,921)

 

 

(1,921)

Net loss attributable to non-controlling interest

(1,082)

(1,082)

Purchase of treasury stock

 

 

 

 

 

 

(204,698)

(3,783)

(3,783)

 

(3,783)

Issuance of treasury stock in connection with the Company's equity plans

(49)

4,184

49

Issuance of common stock in connection with the Company's equity plans

 

423,078

 

1

 

(853)

 

 

 

 

 

(852)

 

 

(852)

Share-based compensation expense

 

 

 

4,767

 

 

 

 

 

4,767

 

67

 

4,834

Balance as of March 31, 2021

 

55,184,000

$

6

$

413,926

$

122,814

$

(5,642)

 

(7,465,997)

$

(125,546)

$

405,558

$

45,402

$

450,960

Net income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

7,767

 

 

 

 

7,767

 

 

7,767

Other comprehensive income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

711

 

 

 

711

 

 

711

Net income attributable to non-controlling interest

855

855

Purchase of treasury stock

 

 

 

 

 

 

(298,727)

(5,560)

(5,560)

 

(5,560)

Issuance of treasury stock in connection with the Company's equity plans

 

 

(142)

 

 

 

12,064

142

 

Issuance of common stock in connection with the Company's equity plans

 

552,209

 

 

7,247

 

 

 

 

 

7,247

 

 

7,247

Share-based compensation expense

 

 

 

6,270

 

 

 

 

 

6,270

 

(1,027)

 

5,243

Balance as of June 30, 2021

 

55,736,209

$

6

$

427,301

$

130,581

$

(4,931)

 

(7,752,660)

$

(130,964)

$

421,993

$

45,230

$

467,223

Net income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

29,548

 

 

 

 

29,548

 

 

29,548

Other comprehensive loss attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

(984)

 

 

 

(984)

 

 

(984)

ANP restructuring (see Note 3)

(22,162)

448

(362)

(22,076)

(46,642)

(68,718)

Net income attributable to non-controlling interest

1,412

1,412

Purchase of treasury stock

 

 

 

 

 

 

(317,212)

(6,094)

(6,094)

 

(6,094)

Issuance of treasury stock in connection with the Company's equity plans

 

 

(11)

 

 

 

900

11

 

Issuance of common stock in connection with the Company's equity plans

 

315,413

 

 

3,869

 

 

 

 

 

3,869

 

 

3,869

Share-based compensation expense

 

 

 

3,920

 

 

 

 

 

3,920

 

 

3,920

Balance as of September 30, 2021

 

56,051,622

$

6

$

412,917

$

160,577

$

(6,277)

 

(8,068,972)

$

(137,047)

$

430,176

$

$

430,176

-4-

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited; in thousands, except share data)

Common Stock

Accumulated

Treasury Stock

Total

Additional

Other

Amphastar

Non-

Paid-in

Retained

Comprehensive

Stockholders'

controlling

Shares

Amount

Capital

Earnings

loss

Shares

Amount

Equity

Interest

Total

Balance as of December 31, 2019

 

52,495,483

$

5

$

367,305

$

116,370

$

(4,687)

 

(5,918,515)

$

(97,627)

$

381,366

$

46,162

$

427,528

Net income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

3,949

 

 

 

 

3,949

 

 

3,949

Other comprehensive loss attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

(774)

 

 

 

(774)

 

 

(774)

Net loss attributable to non-controlling interest

(424)

(424)

Purchase of treasury stock

 

 

 

 

 

 

(647,246)

(10,950)

(10,950)

 

(10,950)

Issuance of treasury stock in connection with the Company's equity plans

(84)

6,873

84

Issuance of common stock in connection with the Company's equity plans

 

369,508

 

 

(1,238)

 

 

 

 

 

(1,238)

 

 

(1,238)

Share-based compensation expense

 

 

 

5,161

 

 

 

 

 

5,161

 

121

 

5,282

Balance as of March 31, 2020

 

52,864,991

$

5

$

371,144

$

120,319

$

(5,461)

 

(6,558,888)

$

(108,493)

$

377,514

$

45,859

$

423,373

Net loss attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

(192)

 

 

 

 

(192)

 

 

(192)

Other comprehensive income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

288

 

 

 

288

 

 

288

Net loss attributable to non-controlling interest

(1,237)

(1,237)

Purchase of treasury stock

 

 

 

 

 

 

(329,391)

(5,756)

(5,756)

 

(5,756)

Issuance of treasury stock in connection with the Company's equity plans

 

 

(130)

 

 

 

10,913

130

 

Issuance of common stock in connection with the Company's equity plans

 

1,507,284

 

 

19,448

 

 

 

 

 

19,448

 

 

19,448

Share-based compensation expense

 

 

 

6,379

 

 

 

 

 

6,379

 

134

 

6,513

Balance as of June 30, 2020

 

54,372,275

$

5

$

396,841

$

120,127

$

(5,173)

 

(6,877,366)

$

(114,119)

$

397,681

$

44,756

$

442,437

Net income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

3,919

 

 

 

 

3,919

 

 

3,919

Other comprehensive income attributable to Amphastar Pharmaceuticals, Inc.

 

 

 

 

 

695

 

 

 

695

 

 

695

Acquisition of additional ownership interest in ANP

(106)

(106)

Net income attributable to non-controlling interest

874

874

Purchase of treasury stock

 

 

 

 

 

 

(214,256)

(4,329)

(4,329)

 

(4,329)

Issuance of treasury stock in connection with the Company's equity plans

 

 

(23)

 

 

 

2,000

23

 

Issuance of common stock in connection with the Company's equity plans

 

251,562

 

 

3,102

 

 

 

 

 

3,102

 

 

3,102

Share-based compensation expense

 

 

 

4,164

 

 

 

 

 

4,164

 

206

 

4,370

Balance as of September 30, 2020

 

54,623,837

$

5

$

404,084

$

124,046

$

(4,478)

 

(7,089,622)

$

(118,425)

$

405,232

$

45,730

$

450,962

See Accompanying Notes to Condensed Consolidated Financial Statements.

-5-

Table of Contents

AMPHASTAR PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

Nine Months Ended

September 30, 

    

2021

    

2020

 

Cash Flows From Operating Activities:

Net income

$

43,541

$

6,889

Reconciliation to net cash provided by operating activities:

Loss on disposal of assets

 

338

 

161

Gain on deconsolidation of subsidiary

(13,587)

Depreciation of property, plant, and equipment

 

16,800

 

14,946

Amortization of product rights, trademarks, and patents

 

930

 

771

Operating lease right-of-use asset amortization

2,471

2,693

Share-based compensation expense

 

14,837

 

16,165

Changes in deferred taxes, net

 

5,170

 

3,638

Changes in operating assets and liabilities:

Accounts receivable, net

 

(14,166)

 

(6,706)

Inventories

 

(5,768)

 

2,351

Prepaid expenses and other assets

 

2,463

 

(3,755)

Income tax refunds, deposits, and payable, net

 

2,832

 

(1,973)

Operating lease liabilities

(2,529)

(2,478)

Accounts payable and accrued liabilities

 

4,221

 

7,671

Net cash provided by operating activities

 

57,553

 

40,373

Cash Flows From Investing Activities:

Purchases and construction of property, plant, and equipment

 

(20,578)

 

(24,526)

Purchase of short-term investments

(12,459)

(10,930)

Maturity of short-term investments

17,423

11,891

Payment of deposits and other assets

 

(1,104)

 

(674)

Net cash used in investing activities

 

(16,718)

 

(24,239)

Cash Flows From Financing Activities:

Acquisition of additional ownership interest in ANP

(106)

ANP restructuring (see Note 3)

(53,592)

Proceeds from equity plans, net of withholding tax payments

 

10,264

 

21,312

Purchase of treasury stock

 

(15,437)

 

(21,035)

Settlement of ANP equity awards

(839)

Debt issuance costs

(1,430)

Proceeds from borrowing under lines of credit

 

 

1,072

Repayments under lines of credit

 

(1,161)

 

Proceeds from issuance of long-term debt

 

70,000

 

3,067

Principal payments on long-term debt

 

(36,127)

 

(6,329)

Net cash used in financing activities

 

(28,322)

 

(2,019)

Effect of exchange rate changes on cash

 

(175)

 

110

Net increase in cash, cash equivalents, and restricted cash

 

12,338

 

14,225

Cash, cash equivalents, and restricted cash at beginning of period

 

94,507

 

75,550

Cash, cash equivalents, a