As Albany Molecular Research ($AMRI) progresses into 2012, it is driven to recoup revenue it lost out on in the first quarter.
In its first-quarter financial report, AMRI earned $53.7 million, a 6% decrease compared with $56.9 million earned by the CMO in the first quarter of 2011. Contract revenue for discovery services and small scale manufacturing also took hits, suffering 8% and 7% decreases respectively compared with a year earlier. Large scale manufacturing, however, enjoyed a 6% increase, earning $23.2 million, as opposed to $21.8 million a year earlier.
In an effort to up revenue, AMRI made a notable sacrifice to close its facility in Budapest, Hungary, laying off 100 employees and saving what should amount to an estimated $14 million, as the Albany Business Review reports. Services typically performed in Hungary will be transferred to Asia, which AMRI states will enhance customer service, something it wants to repair, coming off a harsh FDA review that found violations at AMRI's facility in Massachusetts last year.
Still, AMRI has lot to fall back on. It also secured a $20 million credit line with Wells Fargo and improved its net income by $6.5 million, according to its financial report. AMRI flourished last month, winning a research and development deal with Biota to work on a flu antiviral and an option with Bessor Pharma to license AMRI's tubulin inhibitor program.
As CFO Mark Frost describes, AMRI has a positive financial forecast for the rest of this year. "For the full year 2012, we continue to expect contract revenue to range from $176 million to $186 million, an increase of up to 10% versus 2011," he said.
- read the financial report
- more from Albany Business Review
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