AMRI, on the mend after a rough quarter, is laying out $60 million to expand its manufacturing footprint, agreeing to buy a couple of outposts from service provider Aptuit.
The New York-headquartered company ($AMRI) traded $24 million for Aptuit's Glasgow operation, which specializes in injectable drug development and clinical-stage manufacturing. AMRI also signed a deal to pay $36 million for Aptuit's R&D-focused Indiana subsidiary, acquiring a business devoted to solving formulation problems and offering solid-state chemistry and analytical services.
AMRI expects to wrap up the buyout this quarter, and the company figures its new additions will add between $25 million and $30 million to its 2015 revenue.
"We are very pleased to acquire these two facilities from Aptuit, which will further AMRI's expertise in drug product development and aseptic manufacturing services, two areas of our business where we are seeing the fastest level of growth," CEO William Marth said in a statement.
And AMRI will take all the growth it can get. A series of setbacks has hampered the company's sales over the past few months, and, last quarter, AMRI swung to an $8.6 million net loss on $62.5 million in total revenue, coming in well below what analysts expected. The miss forced AMRI to scale back its ambitions for the rest of 2014, reducing its best-case sales scenario by about 8% to $261 million and cutting its earnings-per-share guidance by 20% to 73 cents. The company has yet to disclose its annual results.
AMRI has spent the past few years working to reduce its dependence on royalty revenue, tied largely to Sanofi's ($SNY) Allegra, focusing instead on contract manufacturing. Last year, the company splurged $110 million for Oso Biopharmaceuticals and $41 million for Cedarburg Pharmaceuticals, two outsourcing outfits, and AMRI has gradually moved away from some slower-growing early-stage services.
- read the statement