With its revenue in decline and share price at its lowest point since 2021, Amphastar Pharmaceuticals has had to adjust its strategy to try to regain the support of investors. To that end, the 29-year-old drugmaker—long known as a generics specialist—is emphasizing the potential of the candidates in its pipeline, including biosimilars.
Illustrating its confidence in its proprietary products, the Southern California company has announced an ambitious plan to quadruple the production capacity of its manufacturing site at its headquarters in Rancho Cucamonga.
Without revealing how much it plans to spend, Amphastar said that it will execute the capacity increase over the next three to five years, “reinforcing its commitment to domestic pharmaceutical manufacturing and strengthening supply chain resilience.”
With its largest-ever investment in its infrastructure, according to the company, Amphastar said it will build a new production plant with “expanded automation and advanced technologies” that will enhance the development and manufacture of both commercial products and pipeline candidates.
The buildup will create new jobs in R&D, engineering, manufacturing and quality control, Amphastar said.
“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,” Jack Zhang, Amphastar’s CEO since he founded the company in 1996, said in a release.
Amphastar’s plan is another example of a drugmaker pouring investment into domestic manufacturing to reduce its reliance on overseas supply chains and to fend off potential tariffs on products made outside of the U.S.
Amphastar has made its mark by manufacturing complex products that are injected and inhaled. In the first quarter, the company reported $171 million in revenue, which was a decline both sequentially and year over year.
Its top products are Baqsimi, which pulled in $38 million in the quarter, and Primatine MIST, which generated sales of $29 million. Baqsimi, a nasal powder blood sugar rescue medication, was acquired from Eli Lilly in 2023 for $500 million upfront and $575 million in potential milestones.