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AMPH - Amphastar Pharmaceuticals Inc News Story

$20.17 -0.2  -1.1%

Last Trade - 18/06/21

Sector
Healthcare
Size
Mid Cap
Market Cap £695.8m
Enterprise Value £677.5m
Revenue £266.6m
Position in Universe 2961st / 6927

Amphastar Announces Buyback of 26% of the Equity in its ANP Subsidiary and Spin-off its Hanxin Subsidiary

Fri 7th May, 2021 9:05pm
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RANCHO CUCAMONGA, Calif., May 07, 2021 (GLOBE NEWSWIRE) -- Amphastar
Pharmaceuticals, Inc. (NASDAQ: AMPH) announced the restructuring of its
Chinese subsidiaries, primarily Amphastar Nanjing Pharmaceuticals Inc.
(“ANP”). As part of the restructuring, Amphastar will buyback 26% of
ANP’s equity currently held by third parties. In addition, ANP will spin-off
its Chinese subsidiary, Nanjing Hanxin Pharmaceutical Technology Co., Ltd. and
Hanxin’s subsidiaries (collectively, “Hanxin”). The restructuring is
subject to regulatory approval, and the total cash payment by Amphastar for
this restructuring will be approximately $29 million.

To effect the spin-out of Hanxin, some of the ANP investors will concurrently
invest a portion of their ANP sale proceeds to purchase a majority ownership
stake in Hanxin, with ANP retaining an approximately 20% minority ownership
stake in Hanxin. ANP will continue to focus on development and manufacturing
of Active Pharmaceutical Ingredients (“API”) for Amphastar’s products
and pipeline products, as well as manufacturing finished pharmaceutical
products for sale outside the U.S. market.

The restructuring will increase Amphastar’s ownership in a critical source
of APIs for Amphastar’s current and, more importantly, pipeline products.
ANP has developed and filed 17 Drug Master Files (DMFs) for API and critical
excipients with the FDA and is currently developing more DMFs. These DMFs
including several insulin products and other diabetes treatments which are key
elements of Amphastar’s pipeline products. This restructuring represents
Amphastar’s strategic commitment to manufacturing finished pharmaceutical
products and APIs for global sale and distribution.

On the restructuring, Amphastar's CEO, Dr. Jack Zhang, stated: "We believe
that the restructuring of ANP is the most effective way for us to continue
expanding globally while maintaining control of our important API
manufacturing capabilities and eliminating expenses for areas unrelated to
Amphastar’s pipeline products. We expect the transaction to be accretive to
Amphastar’s EPS by approximately $0.03 per share in 2021 and $0.12 per share
in 2022."

Amphastar’s executive officers, certain directors and immediate family
members of certain executive officers and directors will be participating in
the transaction as a result of their 2018 investment in ANP. The Company
engaged a financial advisor to conduct an independent third party valuation to
determine the transaction price. The independent disinterested members of the
Company’s Board of Directors engaged a separate independent financial
services firm to evaluate the transaction and render an opinion as to the
fairness of the transaction price as part of their evaluation and approved
these transactions.

Closing is expected to occur in the third quarter of 2021, subject to receipt
of approvals by applicable regulatory authorities in China.

Company Information

Amphastar is a bio-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 Company’s
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 www.amphastar.com.

Amphastar’s logo and other trademarks or service marks of Amphastar,
including, but not limited to Amphastar(®), Primatene Mist(®),
Amphadase(®), and Cortrosyn(®), are the property of Amphastar.

Forward-Looking Statements

All statements in this press release and in the conference call referenced
above that are not historical are forward-looking statements, including, among
other things, statements relating to the timing of closing of the
restructuring, the benefits to the Company from the restructuring, including
the impact on EPS in 2021 and 2022, the Company’s expectations regarding
future financial performance, focus on global sales and marketing of its
products, product development, the timing of FDA filings or approvals,
including the DMFs of ANP, and other future events These statements are not
historical facts but rather are based on Amphastar’s historical performance
and its current expectations, estimates, and projections regarding
Amphastar’s business, operations, and other similar or related factors.
Words such as “may,” “might,” “will,” “could,” “would,”
“should,” “anticipate,” “predict,” “potential,”
“continue,” “expect,” “intend,” “plan,” “project,”
“believe,” “estimate,” and other similar or related expressions are
used to identify these forward-looking statements, although not all
forward-looking statements contain these words. You should not place undue
reliance on forward-looking statements because they involve known and unknown
risks, uncertainties, and assumptions that are difficult or impossible to
predict and, in some cases, beyond Amphastar’s control. Actual results may
differ materially from those in the forward-looking statements as a result of
a number of factors, including those described in Amphastar’s filings with
the Securities and Exchange Commission, including in the Annual Report on Form
10-K for the year ended December 31, 2020, filed with the SEC on March 15,
2021. 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, as well as actions taken by governments, businesses, and consumers
in response to the pandemic, all of which continue to evolve and remain
uncertain at this time. You can locate these reports through the Company’s
website at http://ir.amphastar.com and on the SEC’s website at www.sec.gov.
The forward-looking statements in this release speak only as of the date of
the release. Amphastar undertakes no obligation to revise or update
information or any forward-looking statements in this press release or the
conference call referenced above to reflect events or circumstances in the
future, even if new information becomes available or if subsequent events
cause Amphastar’s expectations to change.

Contact Information: 
Amphastar Pharmaceuticals, Inc.
Bill Peters
Chief Financial Officer
(909) 980-9484




GlobeNewswire, Inc. 2021
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