Amphastar Pharmaceuticals (AMPH) stock is surging 6.54% in pre-market trading on Tuesday, driven by two significant announcements that have bolstered investor confidence in the biopharmaceutical company.

The primary catalyst for the stock's jump is Amphastar's newly inked exclusive licensing agreement with Nanjing Anji Biotechnology Co., Ltd. The deal grants Amphastar the rights to develop and commercialize three peptide-based therapies in the United States and Canada. These innovative treatments target multiple poorly treated cancers, aim to improve docetaxel's selectivity and bioavailability, and address wet age-related macular degeneration. Under the agreement, Amphastar paid $6 million upfront and could pay Anji up to $453 million in total, including development and sales milestone payments, plus royalties of 5% on net sales.

Adding to the positive momentum, Needham has upgraded Amphastar Pharmaceuticals from Hold to Buy, setting a new price target of $36. This vote of confidence from a respected financial institution has further fueled investor enthusiasm. The combination of the licensing deal's potential for long-term growth and the analyst upgrade has created a bullish sentiment around Amphastar, driving the significant pre-market price increase.