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Royalties and contracts good for Albany Molecular Research

By Bethany Bump
Tuesday, August 6, 2013

Albany Molecular Research Inc. saw increased revenue from royalties and contracts in both the second quarter and first half of the year.

The Albany-based research and manufacturing organization provides drug discovery and scientific services, technologies and products to the pharmaceutical and biotechnology industries. In the second quarter ending June 30, it experienced overall revenue of $59.3 million, up 19 percent from $50 million in the second quarter of 2012.

Total contract revenue in the second quarter was $50.8 million, up 20 percent from $42.4 million last year. This includes revenue from AMRI's discovery services, development and small scale manufacturing, and large scale manufacturing business components.

Royalty revenue was $8.5 million, up 13 percent from $7.5 million last year. This includes royalties from Allegra products, in addition to $2.8 million from the net sales of Actavis-sold amphetamine salts.

“AMRI is performing at a high level and we are pleased with our third consecutive quarter of total revenue growth," said company President and CEO Thomas D’Ambra in a news release. "During the quarter, we made several announcements, including the appointment of William S. Marth as chairman of the board and AMRI Burlington’s expanded registration by the U.S. Drug Enforcement Administration to handle Schedule 2 and 2N controlled substances. In addition, in July, our Burlington aseptic fill finish operation was inspected by the FDA resulting in limited-scope findings, including no observations related to corrective actions previously implemented. We believe this represents a positive step forward for Burlington.”

So far in 2013, AMRI has $118.7 million in revenue — a 14 percent increase from total revenue of $103.7 million during the first half of 2012.

Total contract revenue during the first half of the year was $97.3 million, up 15 percent from $85.1 million in 2012. Royalty revenue was $21.4 million, up 16 percent from $18.5 million in the first half of last year.

“AMRI continues to deliver revenue, earnings and cash flow performance in line with our prior guidance and objective to be profitable excluding royalties by the end of the year," said company CFO and Treasurer Michael Nolan in the release. "With another solid quarter of underlying business performance, we are updating our revenue outlook to increase the bottom end of the range resulting in a new range of $209 to $213 million, reflecting growth at the top end of up to 12 percent."

He said he expects third quarter revenue to fall between $51 million and $53 million, with adjusted earnings per share between 9 and 12 cents per share.

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