AMRI narrows losses on strong Q3
CMO AMRI ($AMRI) posted an 11% jump in revenue in the third quarter, cutting its net loss by about $3.8 million thanks to double-digit growth in large-scale manufacturing.
AMRI took a loss of $2.1 million in Q3, down from $5.9 million in the same period last year. Revenue climbed to $55.8 million, offsetting a decline in its discovery business with a 14% boost in AMRI's large-scale manufacturing unit. The company says it would have virtually broken even on the quarter if not for restructuring charges stemming from its closure of a plant in Hungary.
The CMO pulled in $9.4 million in royalty revenue, an increase of 45%, thanks largely to its API manufacturing and money it gets from sales of Sanofi's ($SNY) Allegra.
Looking forward, CEO Thomas D'Ambra said AMRI should be able to continue its growth, buoyed by the recent signing of a discovery pact with Knopp Biosciences and a contract extension with Shire ($SHPG). Furthermore, "we are actively pursuing several other opportunities with existing and new customers that could potentially provide AMRI with a stronger, more diverse business base as we enter 2013," D'Ambra said in a statement.
AMRI affirmed its annual revenue guidance, predicting 10% year-over-year growth, and the company says its SmartSourcing platform--an all-in-one option for drugmakers--will help drive it into the black.
- read AMRI's release
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