AMRI upbeat for 2010 despite drop in Q1 revs

By Gareth Macdonald

- Last updated on GMT

Related tags Clinical trial Term

Albany Molecular Research (AMRI) says Q1 decline is due to “soft” demand for contract manufacturing services and trial materials, but is still confident of full-year growth.

AMRI's total revenue for the period was $49.3m (€38.5m), down 9 per cent on the year-earlier quarter with the contribution from its manufacturing business falling 10 per cent to $38.9m.

Corporate communications directors Andrea Schulz told Outsourcing-Pharma that the decline in development-stage revenue is due “primarily to continued soft demand from our US specialty Pharma Biotech customers​.”

She went on to say that AMRI’s large-scale contract manufacturing business has been hit by lower demand for trial materials and a US Food and Drug Administration (FDA)

Also​,” Schulz continued “there has been a delay for product on a compound shipped pre-launch last year that has been held back by the FDA for a second Phase III clinical trial which has had a direct impact on revenue and margins​.

While we have been experiencing a decline in revenues, our full year guidance does state that we anticipate an overall increase in revenues for 2010 over 2009​.”

This forecast is partly based on new contract wins coming from AMRI’s recent acquisition, Holywell Wales-based trial and commercial-scale drug manufacturer Excelsyn.

Schulz said that, since completing the deal in February​, AMRI is “already experiencing an increase in the number of projects large pharma is willing to place with our combined organization​.

Longer term benefits include further penetration not only into large pharma but the larger European market​.”

Discovery services revs up in Q1

Elsewhere AMRI’s discovery services unit saw a first quarter upswing with revenues growing 7 per cent to $12.3m due in part, according to Schulz, to demand being seen by its business in Singapore.

She explained that: “AMRI has been expanding both geographically and into other service offerings which we believe has allowed us to grow our core discovery services business by combining our US strength in problem solving with lower cost resources outside the US.

Schulz also highlighted AMRI’s recent collaborative agreements with Navigen and CHDI as being significant development for the firm’s business.

She explained that the deals will “not only generate immediate revenue to AMRI in the short term but offer long term potential for expanded relationships in the future.

It also supports the successful launch of our integrated product offering for integrated dug discovery services; we anticipate increasing demand for this service as we continue and/or pursue discussions with other potential customers for this service.”

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