Amphastar Pharmaceuticals (AMPH) saw its stock surge 6.15% in after-hours trading on Thursday, following the release of its second-quarter earnings report that surpassed analyst expectations. The pharmaceutical company reported Q2 revenue of $174.4 million, beating the consensus estimate of $173.30 million, while adjusted earnings per share came in at $0.85, significantly above the expected $0.74.

The strong performance was primarily driven by a 21% increase in BAQSIMI sales, attributed to higher unit volumes according to CEO Jack Zhang. Despite the positive results, it's worth noting that the Q2 revenue represents a 4.38% decrease compared to the same period last year, which recorded sales of $182.394 million.

Adding to investor optimism, Amphastar announced plans for a major infrastructure investment to quadruple its manufacturing capacity at its headquarters. This move aims to mitigate international supply chain risks and expand the company's U.S. manufacturing footprint, potentially setting the stage for long-term growth. However, the company also reported a decrease in epinephrine sales due to increased competition and suppliers returning to historical distribution levels, indicating some challenges in the competitive landscape.