The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how generic pharmaceuticals stocks fared in Q3, starting with Amneal (NASDAQ:AMRX).
The generic pharmaceutical industry operates on a volume-driven, low-cost business model, producing bioequivalent versions of branded drugs once their patents expire. These companies benefit from consistent demand for affordable medications, as they are critical to reducing healthcare costs. Generics typically face lower R&D expenses and shorter regulatory approval timelines compared to branded drug makers, enabling cost efficiencies. However, the industry is highly competitive, with intense pricing pressures, thin margins, and frequent legal challenges from branded pharmaceutical companies over patent disputes. Looking ahead, the industry is supported by tailwinds such as the role of AI in streamlining drug development (reverse engineering complex formulations) and manufacturing efficiency (optimize processes and remove inefficiencies). Governments and insurers’ focus on reducing drug costs can also boost generics’ adoption. However, headwinds include escalating pricing pressure from large buyers like pharmacy chains and healthcare distributors as well as evolving regulatory hurdles.
The 4 generic pharmaceuticals stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.5% since the latest earnings results.
Amneal (NASDAQ:AMRX)
Founded in 2002, Amneal Pharmaceuticals (NASDAQ:AMRX) develops, manufactures, and distributes a diverse portfolio of pharmaceuticals.Amneal reported revenues of $702.5 million, up 13.3% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EPS estimates.
Amneal pulled off the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 0.9% since reporting and currently trades at $7.72.
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Best Q3: ANI Pharmaceuticals (NASDAQ:ANIP)
Founded in 2001, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic pharmaceutical products, with a focus on complex formulations and niche markets.ANI Pharmaceuticals reported revenues of $148.3 million, up 12.5% year on year, outperforming analysts’ expectations by 1.5%. The business had a very strong quarter with an impressive beat of analysts’ full-year EPS guidance estimates.
ANI Pharmaceuticals delivered the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $58.73.
Weakest Q3: Amphastar Pharmaceuticals (NASDAQ:AMPH)
Founded in 1996, Amphastar Pharmaceuticals (NASDAQ:AMPH) develops, manufactures, and markets injectable and inhalation products, focusing on critical care, emergency, and chronic conditions.Amphastar Pharmaceuticals reported revenues of $191.2 million, up 5.9% year on year, falling short of analysts’ expectations by 1%. It was a softer quarter as it posted a miss of analysts’ EPS estimates.
Amphastar Pharmaceuticals delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 42.5% since the results and currently trades at $30.77.
Viatris (NASDAQ:VTRS)
Formed in 2020 through the merger of Mylan and Upjohn, Viatris (NASDAQ:VTRS) provides a portfolio of branded, generic, and over-the-counter medications as well as biosimilars aimed at addressing a wide range of therapeutic areas.Viatris reported revenues of $3.75 billion, down 4.8% year on year. This print topped analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
Viatris had the slowest revenue growth among its peers. The stock is down 6.2% since reporting and currently trades at $10.90.
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