Amphastar Pharmaceuticals (AMPH) has drawn fresh attention after signing an exclusive license agreement with Nanjing Hanxin Pharmaceutical for AMP-110, a synthetic hormone analog for inflammatory and autoimmune diseases in the U.S. and Canada.

The AMP-110 announcement came after a 19.6% 90 day share price return and a recent 5.8% intraday move on the news. The 1 year total shareholder return of a 23.4% decline shows longer term holders have not yet seen a recovery, suggesting short term momentum is improving from a weaker base.

If AMP-110 has you thinking about where future therapies might come from next, this could be a good moment to look across other healthcare stocks that are catching investor attention.

With Amphastar trading at a discount to analyst targets and an intrinsic value estimate that sits well above the current US$27.76 share price, you have to ask: is this a genuine opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 13.2% Undervalued

The most followed narrative sees Amphastar’s fair value above the recent US$27.76 close, and ties that view to measured expectations for earnings and margins.

The analysts have a consensus price target of $32.0 for Amphastar Pharmaceuticals based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $38.0, and the most bearish reporting a price target of just $25.0.

Want to see what is behind that valuation gap? Revenue growth, margin shifts, and a future earnings multiple all sit at the center of this narrative. The numbers tell a specific story. The only way to judge it is to see the full picture for yourself.

Result: Fair Value of $32 (UNDERVALUED)

However, that gap could close faster if Amphastar’s U.S. capacity build out and broader pipeline, including products like AMP-002 and AMP-007, ramp more smoothly than expected.

Build Your Own Amphastar Pharmaceuticals Narrative

If the current narratives do not quite fit how you see Amphastar’s story, you can review the data yourself and shape a custom view in minutes: Do it your way.

A great starting point for your Amphastar Pharmaceuticals research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking For More Investment Ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.