Under the extended deal – terms of which were not provided – the contractor will produce for aminobisamide hydrochloride on GE’s behalf as it has done for almost a decade.
The original supply agreement dates back to 1999, when Nycomed Amersham - which subsequently became Amersham Health that was purchased by GE - signed an eight-year agreement with Organichem Corporation to produce raw materials and active ingredients for its diagnostic imaging business. AMRI bought Organichem in 2003.
AMRI CEO Thomas D’Ambra made reference to this history when announcing the extension. He said: “The ABA product relationship with GE Healthcare has been an important one for AMRI since acquisition of the Rensselaer plant in 2003 and at this time is our largest commercial supply arrangement.
D’Ambra added that: “The extension of this key, long term agreement provides a consistent and high quality revenue source” and also stressed the importance of the extension for AMRI’s large-scale contract manufacturing business.
“We continue to be pleased with the progress that we are making in our Large Scale Manufacturing business segment, the largest component of which is our Rensselaer site. We are adding new customers and new products at this facility, along with continuing the long term relationships, like GE Healthcare, that have formed the basis of our revenue stream.”
AMRI’s large scale contract manufacturing business is been the driver for the firm in 2012 as evidenced during the third quarter financials the firm published last month.
Revenue from this part of the firm’s business increased 14 per cent year-on-year due to major contracts, including its recently extended production agreement with US drugmaker Shire.
The continued positive performance is in marked contrast with AMRI discovery services business, revenue from which fell five per cent in the third quarter.
Earlier this week AMRI announced that it was restructuring its discovery services operations by closing its site in Bothell in the US and shifting operations to its facility in Singapore citing a desire to win new customers in Asia.