Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) Q3 2019 Earnings Conference Call Transcript
Nov 07, 2019 • 05:00 pm ET
As this conference call may contain forward-looking statements, including statements relating to Amphastar Pharmaceuticals. These statements are not historical facts, but rather are based on Amphastar Pharmaceuticals' current expectations, estimates and projections regarding Amphastar Pharmaceuticals' business, operations and other similar or related factors. Words such as may, will, could, would, should, anticipate, predict, potential, continue, expects, intends, plans, projects, believes, estimates, and other similar or related expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance. And they involve risks, uncertainties and assumptions that are difficult or impossible to predict. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors including these described from time to time and as Amphastar Pharmaceuticals' filings with the SEC.
At this time, I would like to turn the call over to Mr. Jason Shandell, President of Amphastar. Please go ahead.
Jason B. Shandell
Thank you, operator. Good afternoon and welcome to Amphastar Pharmaceuticals' third quarter earnings call. My name is Jason Shandell, President of Amphastar. I am joined today with my colleague Bill Peters, CFO of Amphastar. We appreciate you joining us on the call today and we look forward to speaking with you and answering any questions you may have.
The Company had a great third quarter and I'm happy to announce that we shipped a significant quantity of Primatene Mist to Walmart in October and the product will be on Walmart shelves on Monday, November 11th. We view this as a significant milestone, given that historically Walmart has made up 35% of our Primatene Mist CFC sales. Once sales commenced in Walmart, which will greatly increase distribution of our product, we plan on increasing our TV advertising spend as our Primatene Mist commercials have had a demonstrable impact on sales at the retail stores.
Weekly store sales in the last week of the third quarter increased by 58% compared to the first week of the third quarter, which was just before the TV ads began airing. We expect weekly store sales to significantly increase further once Walmart begin selling the product next week. Based on the consumer awareness is being generated by advertising and the continued positive trend in retail store sales, we maintain our guidance of achieving $65 million in revenues from Primatene Mist and approximately two to three years from the launch of the product.
The majority of our commercial injectable portfolio continued to have strong sales and margin growth in the third quarter and helped to offset weakness in the enoxaparin market. Sales of medroxyprogesterone increased 27%, compared to the second quarter, primarily due to new contracts as well as supply issues by competitors. Naloxone sales increased 20% compared to the second quarter due to the timing of purchases by some large customers. We also had increased sales of Isoproterenol as we secured some new contracts for this product. Finally, demand for our IMS products continues to be very strong due to