AMRI reports 15% rise in revenue in second quarter

Helped by growth in its large-scale manufacturing business and acquisition of Cedarburg Pharmaceuticals

US contract manufacturing and research organisation AMRI reported second quarter contract revenue of US$61.5m, up 21% from 2013, led by a 34% growth in its large-scale manufacturing business and the addition of Cedarburg Pharmaceuticals.

Contract margins improved across the US company’s entire operations as a result of increased capacity utilisation and the addition of Cedarburg.

‘We continue to see growth in our pipeline of discovery and development programmes, notably the expansion of our innovative Insourcing chemistry programme, together with the addition of new development and supply programmes in our API and Drug Product divisions,’ said William Marth, AMRI’s President and Chief Executive.

‘Based on anticipated continued growth of our business and the recent addition of OsoBio, we are raising our outlook for 2014 with contract revenue growth of 33% and adjusted diluted EPS growth of 29% at the midpoint.’

Total revenue for the second quarter of 2014 was $68.2m, an increase of 15% compared with $59.3m in Q2 of 2013.

We are raising our outlook for 2014 with contract revenue growth of 33% and adjusted diluted EPS growth of 29%

Royalty revenue in Q2 was $6.7m, a fall of 21% from $8.5m in 2013. This includes royalties from the Allegra products, as well as $2.5m from the net sales of certain amphetamine salts sold by Actavis.

Net income under US GAAP was $3.7m, or $0.11 per diluted share, compared with a net loss of $(2.5)m, or $(0.08) per basic and diluted share.

Total revenue for the six-month period to 30 June 2014 was $127.5m, an increase of 7% compared with $118.7m for the same period in 2013.

Total contract revenue for the first six months was $112.5m, an increase of 16% compared with $97.3m.

Royalty revenue for the first six months of 2014 was $15.0m, a fall of 30% from $21.4m.

Since the close of the second quarter, AMRI has bought the Oso Biopharmaceuticals Manufacturing business for $109.3m in cash.

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