Strong international performance drives AMRI growth

Optimistic about revenue opportunities following Hyaluron purchase

Albany Molecular Research Inc (AMRI) increased its contract revenue by 5% to US$40.7m in the second quarter to 30 June, compared with Q2 in 2009, driven by growth at its international discovery and development/small scale operations.

But total revenue for the second quarter decreased by 4% to US$49.5m, compared with US$51.3m in 2009.

Excluding costs relating to the US$27.5m acquisition of Hyaluron in June, which gave AMRI entry into pre-filled syringe market, net income on an adjusted basis in the second quarter of 2010 was US$1.7m.

For the six months to 30 June total contract revenue fell by 3% to US$79.6m and total revenue decreased by 6% to US$98.8m.

Recurring royalties from antihistamine drug Allegra for the first six months of 2010 were down by 1% to US$19.2m.

Net loss in the first half of 2010 was US$(3.9)m, compared with a net income of US$2.1m in the same period in 2009.

Other highlights include the granting of a preliminary injunction to prevent the launch of generic versions of Allegra-D extended-release tablets in the US, and the start of a Phase 1 study of ALB-127158(a), a novel MCH receptor antagonist offering a potential new treatment for obesity.

AMRI chief executive Thomas D'Ambra said the second-quarter results reflected the continued shift in demand for services from customers in Asia and Europe.

‘Our ability to deliver high-value services combined with our more cost-effective facilities in Asia is driving demand throughout our organisation,’ he said.

He added that AMRI was also excited about the opportunities available through its acquisition of Hyaluron, which provides contract sterile syringe and vial filling using specialised technologies including lyophilisation and Bubble-Free Filling, a patented technology developed by Hyaluron.

‘We are optimistic about the growth and revenue synergy opportunities,’ said D’Ambra.

AMRI expects contract revenue to range from US$43m to US$46m in the third quarter, an increase of up to 16% from 2009 levels.

For the full year, contract revenue is expected to range from US$175m to US$181m, an increase of up to 15% compared with 2009.

Third-quarter royalties of US$6m to US$7m and expected for Allegra, with full-year royalties of US$31m to US$33m.

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