AMRI's API revs up in Q2 after Gadea offsets plant closure and lower royalties

By Gareth Macdonald contact

- Last updated on GMT

AMRI headquarters in Albany, NY (Source: AMRI)
AMRI headquarters in Albany, NY (Source: AMRI)

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Steroid API firm Gadea Pharmaceuticals helped AMRI grow revenue in the second quarter offsetting flat royalties and the impact of the closure of its site in Holywell, Wales.

Active pharmaceutical ingredient (API) revenue for the three months to June 30 was $69.8m (€62.7m), up 64% on the second quarter last year. Contract manufacturing generated $65.4m, up from $39.9m in Q2 last year.

AMRI attributed the contracting gains to Gadea, which it bought last August​, explaining that the firm generated revenue of $28.1m.

It also said the Spanish contractor’s contribution had partially offset sales lost following the closure of its Holywell site last year​.

Drug ingredient royalties were flat for the quarter at $4.3m.

AMRI said higher sales of amphetamine salts by its customer Allergan had been overshadowed by the loss of royalties from Sanofi’s Allegra (fexofenadine) stopped coming in at the end of Q2 last year.

Non API business 

API discovery revenue grew 21% to $25.8m due - according to AMRI – to the contribution made by Whitehouse Labs, an analytical services company it bought in December.

The firm said the $3.1m from Whitehouse offset a lower contribution from its operation in Singapore.

Revenue from AMRI’s drug product manufacturing business increased 6% in the quarter to $25m. The firm cited higher demand and efficiencies at its facility in Albuquerque, New Mexico as the driver of the increase.

Outlook

AMRI predicted its API business will continue to be its primary driver in the rest of 2016.

The firm raised its revenue guidance to between $590m to $615m, up from the $465m to $490m range it predicted in May, citing recently acquired Italy-based API maker Euticals as the main reason for the revision.

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