With the potential loss of 64 jobs at the Holywell plant in Flintshire
US contract research and manufacturing organisation Albany Molecular Research (AMRI) is proposing to close its UK facility in Wales, putting 64 jobs at risk.
The former Excelsyn facility in Holywell, Flintshire, which AMRI bought in 2010, provides chemical development services and small- and large-scale manufacturing services of active pharmaceutical ingredients (API).
William Marth, President and Chief Executive of AMRI, said the original strategy for the Holywell site was for it to act as a channel between Europe and the US, but the company had not been able to do this 'in a way that maximises value for our customers and shareholders', nor was it aligned to the new strategic direction of the company.
Marth said AMRI's aim is to be the leading supplier of custom and complex end-to-end services to the pharmaceutical industry, which includes the development and manufacture of high-value, niche active pharmaceutical ingredients (APIs).
AMRI is in consultation with employee representatives at Holywell to consider ways of avoiding the proposed redundancies and reducing their number and impact.
The announcement of the proposed closure coincided with AMRI reporting record results for 2014.
Total revenue for the year to 31 December was US$276.6m, an increase of 12% compared with $246.6m in 2013.
Total contract revenue was a record $250.7m, up 19% compared with contract revenue of $210m for the previous year.
Royalty revenue fell 29% from $36.6m to $25.9m. This includes $16.3m in royalties from the Allegra products, as well as $9.6m from the net sales of certain amphetamine salts sold by Actavis.
Net loss under US GAAP for the full year 2014 was $(3.3)m, compared with $11.8m in 2013.
Net income on an adjusted basis in the full year 2014 was $20.7m compared with $21.5m in 2013. Adjusted net income includes a $6.4m fall in royalty income and $0.7m of income from operations acquired in 2014.
'While our OsoBio facility [in Albuquerque, New Mexico] resumed full operations later than anticipated, after we learned in the fall of 2014 that a remediation would be necessary, strong execution led us to finish 2014 with record performances in each of our businesses,' said Marth.
During the year AMRI reorganised its discovery business, advanced its growth in generics, and completed and integrated two acquisitions and announced a third, expanding its capabilities into attractive, high demand areas such as controlled substances, sterile manufacturing and product development, he added.
Marth said the company has much to be proud of in 2014 and is poised for a strong 2015.