Amid budget-slashing and restructuring, AMRI ($AMRI) has some good news to report: The CRO has re-signed with GE Healthcare ($GE) to supply materials for diagnostic imaging, locking down its biggest commercial supply client through 2016.
Under the deal, AMRI will provide aminobisamide hydrochloride through its large-scale manufacturing operation in Rensselaer, NY, extending a contract first inked in 2005.
CEO Thomas D'Ambra said the new deal is an affirmation of AMRI's success in building its large-scale manufacturing arm, headquartered at the Rensselaer facility acquired in 2003. The business grew 14% last quarter, and D'Ambra said AMRI expects it to keep attracting new partners.
"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," D'Ambra said in a statement. "The extension of this key, long term-agreement provides a consistent and high-quality revenue source for this business unit through 2016."
Last week, AMRI announced plans to shutter its R&D operation in Bothell, WA, shifting the site's biological capabilities to a Singapore location and absorbing its analytic services into AMRI's Albany, NY, headquarters. The restructuring is aimed to save about $2 million per year, AMRI said, and will result in a one-time charge of $11 million.
AMRI posted 11% in revenue growth last quarter, thanks largely to the boost in large-scale manufacturing sales and an increase in demand for the company's SmartSourcing platform, an all-in-one option for research, development and manufacturing.
- read AMRI's statement