Despite drop in royalties, AMRI happy with earnings
ALBANY Revenue dropped slightly in the first quarter of the year at Albany Molecular Research Inc., but it was still a good quarter given the greater-than-anticipated drop in royalties, the company said.
The Albany-based research and manufacturing organization provides drug discovery and scientific services, technologies and products to the pharmaceutical and biotechnology industries. Its crowning achievement was the manufacture of fexofenadine, the active ingredient in the popular antihistamine drug Allegra. Its patents on this began to expire last year, though, and royalties have fallen for years.
Total revenue was $59.3 million in the first quarter of 2014, down slightly from $59.4 million in the first quarter of 2013.
Royalty revenue in the first quarter was $8.3 million, down 36 percent from $12.9 million last year, due primarily to lower royalties on Allegra products as generic fexofenadine products gain a foothold in Japan. AMRI said it expects a $10 million to $12 million drop in royalties from Allegra.
“We made great progress executing on our strategy in the quarter, as evidenced by a 19 percent increase in our large-scale manufacturing business and solid overall operating performance, despite the greater-than-anticipated decline in Allegra royalties,” said AMRI President and CEO William S. Marth in a news release.
Total contract revenue was up 10 percent in the first quarter from $46.5 million last year to $51 million this year. Large-scale manufacturing contract revenue did especially well, up from $26.4 million to $31.5 million.