One-glance verdict
Undervalued
$284.30 our estimate vs market $74.00
Wall Street consensus: $105.78 (-62.8% lower than our fair-value estimate)
74% below our estimate, below the bear case
Fundamentals snapshot
ANI Pharmaceuticals, Inc.
ANIP · NGM · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$74.00
52-week range
$69.58 - $97.00
Market cap
$1.70B
Balance sheet
Watch
4.05x Stretched
Net debt $249.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.8% last year.
- Reward Returns 20.5% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Net debt grew 35.3% over 3 years.
What this company does
ANI Pharmaceuticals, Inc.
ANI Pharmaceuticals is a drug company that makes and sells both its own unique, branded medicines and cheaper, generic versions of other drugs. A large portion of its sales comes from a drug called Cortrophin, which contributes significantly to its profit margins (the percentage of each sale that turns into actual profit). This business model matters because it balances the potential for high profits from new drugs with the more stable and predictable income from its generic products.
How the company got here
ANI Pharmaceuticals was founded in 2001 and became a publicly-traded company in its current form in 2013 after combining with another firm. For many years, it focused on making generic drugs (less expensive copies of brand-name drugs) and managing older, established brand-name medicines. A major turning point came in 2021 when ANI acquired Purified Cortrophin Gel, a specialty drug that shifted the company's focus toward more complex and valuable treatments for rare diseases. That same year, it bought Novitium Pharma to boost its drug development and manufacturing abilities, and in 2024, it acquired Alimera Sciences to further expand its rare disease business.
What it actually does
ANI Pharmaceuticals is a company that makes and sells prescription medicines primarily in the United States. You wouldn't find their products on a convenience store shelf; they are specialized treatments prescribed by doctors and distributed through wholesalers, hospitals, and specialty pharmacies. The company operates three main types of businesses: creating high-value drugs for rare diseases, selling older but still-prescribed brand-name drugs, and manufacturing generic drugs. This mix allows them to invest in new, innovative treatments while also earning steady money from established products.
Rare Disease
This is the company's main focus and its biggest source of growth, making up the majority of its sales. This division sells high-value medicines for uncommon conditions, with its most important product being Purified Cortrophin Gel, used for illnesses like multiple sclerosis and rheumatoid arthritis. Following a recent acquisition (the process of buying another company), this segment now also includes drugs for serious eye conditions. Doctors who are specialists in these diseases prescribe these drugs, and health insurance companies and patients pay for them.
Generics
This part of the company produces generic drugs, which are more affordable copies of brand-name medicines whose patents have expired. ANI often focuses on making generics that are more technically difficult to produce, which can lead to having fewer competitors. This business provides a reliable stream of cash flow (money coming into the company after its day-to-day expenses are paid) that helps fund the company's expansion into rare disease treatments. This segment is a large contributor to the company's overall revenue (the total money earned from sales).
Established Brands
This segment manages a collection of older, branded drugs that are no longer protected by patents but are still trusted and prescribed by doctors. Products in this category, like Inderal LA and InnoPran XL, are not expected to be fast-growing. Instead, the company manages them to generate consistent and predictable cash flow. This business is a smaller piece of ANI's total revenue compared to its Rare Disease and Generics segments.
What management is betting on now
The company's main strategy is to continue its transformation into a leading provider of medicines for rare diseases. A key part of this plan is to maximize sales of its flagship product, Cortrophin Gel, by encouraging doctors to use it for more types of medical conditions. Management is also actively buying other companies, like the recent acquisition of Alimera Sciences, to add new rare disease drugs to its portfolio. While heavily investing in this high-growth area, the company plans to use the steady cash generated from its Generics business to fuel these investments.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.66M
FY2024 Q4
$13.47M
FY2025 Q1
$32.52M
FY2025 Q2
$71.80M
FY2025 Q3
$37.95M
FY2025 Q4
$29.12M
FY2026 Q1
$52.30M
FY2026 Q2
$53.62M
Revenue
$266.04M
Net income
$24.71M
Diluted EPS
1.05
Operating cash flow
$56.67M
Free cash flow
$53.62M
Fetching…
Sources
Revenue
$237.46M
Net income
$29.49M
Diluted EPS
1.28
Operating cash flow
$58.38M
Free cash flow
$52.30M
Fetching…
Sources
Revenue
$247.06M
Net income
$27.49M
Diluted EPS
1.14
Operating cash flow
$30.37M
Free cash flow
$29.12M
Fetching…
Sources
Revenue
$227.81M
Net income
$26.62M
Diluted EPS
1.13
Operating cash flow
$44.05M
Free cash flow
$37.95M
Fetching…
Sources
Revenue
$211.37M
Net income
$8.55M
Diluted EPS
0.36
Operating cash flow
$75.81M
Free cash flow
$71.80M
Fetching…
Sources
Revenue
$197.12M
Net income
$15.68M
Diluted EPS
0.69
Operating cash flow
$34.99M
Free cash flow
$32.52M
Fetching…
Sources
Revenue
$190.57M
Net income
$-10.28M
Diluted EPS
-0.45
Operating cash flow
$15.86M
Free cash flow
$13.47M
Fetching…
Sources
Revenue
$148.33M
Net income
$-24.17M
Diluted EPS
-1.27
Operating cash flow
$12.47M
Free cash flow
$7.66M
Fetching…
Sources
Is it cheap or expensive?
Fair value $284.30 vs current price $74.00
Wall Street consensus is the average analyst price target: $105.78 (-62.8% lower than our fair-value estimate).
Our most-likely fair value is $284.30 a share — about 284.2% above today's price of $74.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $249.1M. Interest coverage 4.0x.
Net debt
$249.07M
Interest coverage
4.05x
ANI Pharmaceuticals, Inc.'s profit covers its interest bill about 4.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
ANIP
BASELINE
ANI Pharmaceuticals, Inc.
Total debt $626.03M Interest coverage 4.05x This is the baseline the peer rows are being compared against.
Total debt $29.23M Interest coverage -0.23x -100% vs ANIP This peer has almost no interest-payment cushion compared with ANIP.
Total debt $300.74M Interest coverage 1.26x -69% vs ANIP Carries about 3.2x less debt cushion than ANIP.
Total debt $688.32M Interest coverage 5.51x +36% vs ANIP Carries about 1.4x more debt cushion than ANIP.
Total debt $412.12M Interest coverage 1.31x -68% vs ANIP Carries about 3.1x less debt cushion than ANIP.
What you should know
The case for and against ANIP
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.8% last year.
-
Returns 20.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 35.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.19x
Forward P/E
7.06x
P/B
2.66x
P/S
1.74x
EV/EBITDA
8.76x
PEG ratio
1.84x
Profitability
How much profit each dollar creates
Gross margin
60.4%
Operating margin
15.0%
Net margin
11.1%
ROE
20.5%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
2.91x
Quick ratio
2.30x
Total debt
$626.03M
Total cash
$376.96M
Growth
How the business has been compounding
Revenue TTM
$978.38M
Revenue 5Y CAGR
42.2%
EPS TTM
4.57
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$189.47M
Free CF TTM
$171.39M
FCF margin
17.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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