Generic Drug Maker Amneal Pharmaceuticals Is Positioned To Growth Well Ahead Of Peers, Analyst Upgrades Stock

Zinger Key Points

Crexont prescriptions reached 964 per week by mid-February, capturing 15% of Rytary’s volume and exceeding market expectations.
JP Morgan upgraded Amneal to Overweight, raising its price target to $12, citing strong generics growth and expanding biosimilar adoption.
Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos.

J.P. Morgan has upgraded Amneal Pharmaceuticals, Inc AMRX, noting the company’s generics business is increasingly well-positioned with a solid Crexont launch and continued momentum across the portfolio.

In August 2024, the FDA approved Amneal’s IPX203 for Parkinson’s disease as Crexont (Carbidopa and Levodopa) extended-release capsules. The generic drug was launched in September.

J.P. Morgan analyst Chris Schott reports that Crexont prescriptions are nearing 1,000 per week, with 964 recorded in the week of February 14.

The drug is capturing market share faster than expected, making up about 15% of Rytary’s volume.

Schott anticipates strong growth throughout the year as Amneal expands insurance coverage. As a result, J.P. Morgan is increasing its sales projections, forecasting Crexont revenue of $64 million in 2025, $125 million in 2026, and peak sales above $300 million, surpassing Rytary.

On February 28, Amneal is scheduled to release its fourth-quarter earnings.

According to data from Benzinga Pro, the generics player is expected to report fourth-quarter sales of $707.05 million and adjusted EPS of 15 cents.

J.P. Morgan has upgraded Amneal from Neutral to Overweight with a price forecast of $12, up from $9.

The analyst notes that Amneal has moved its generics business from simple oral tablets to more complex products, which should support long-term growth.

This shift, successful new product launches, and a steadier pricing environment for generics helped the company’s generics segment grow by double digits in 2024. Growth is expected to continue in 2025, with an 8% increase driven by new generics and rising biosimilar adoption.

With strong growth from generics, brand-name drugs, and AvKARE (which has grown over 20% in the past two years), JP Morgan writes, “We believe AMRX is positioned to generate growth well ahead of peers.”

Price Action: AMRX stock is up 8.75% at $8.515 at last check Monday.

Read Next: