AMRI shells out $174M for a Spanish drugmaker

Contract drug developer AMRI ($AMRI) bought Spain's Gadea Pharmaceutical for $174 million, picking up a company focused on the manufacture of active ingredients and finished treatments. For the New York-headquartered AMRI, the deal bolsters its growing manufacturing division, of increasing importance as the company faces declining demand for its drug discovery services and moves away from royalty revenue. Based in Valladolid, Gadea specializes in producing technically complex drug chemicals, and bringing into the fold will make AMRI more competitive in the market for contract manufacturing, according to management. About $43.8 million of the purchase price comes in the form of AMRI stock, the company said, with the rest tendered in cash. Release

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