U.S.-based AMRI ($AMRI) has benefited from its buildup and focus on contract manufacturing and is now taking its strategy to Europe. It has struck a deal that will give it API production in three EU countries, plus a U.S. facility.
AMRI signed a stock-and-cash deal last week to buy Prime European Therapeuticals, known primarily as Euticals, in a deal it says puts a value of $358 million (€315 million) on the Lodi, Italy-based private company.
AMRI will pick up API facilities that it says are primarily in Italy, Germany, France and in Springfield, MO, in the U.S. It says it was attracted, in part, by Euticals’ expertise in certain tetracyclines, monobactams, sterile and fermented APIs and controlled substances. AMRI said Euticals was projecting 2016 revenue between $245 million and $255 million.
"The acquisition of Euticals will provide us an established custom synthesis presence in Europe and will further build on our expertise in complex APIs ... ” AMRI CEO William S. Marth said in a statement.
The company made the announcement days ahead of issuing its Q1 earnings. Then on Wednesday, the Albany, NY-based CDMO reported that revenue were up in Q1 with contract manufacturing hitting $102.8 million, an increase of 37%, compared to total contract revenue of $75.1 million reported in the first quarter of 2015, although its API sales fell short of expectations for timing reasons. It reported a loss of 29 cents a diluted share for the quarter. The contractor has moved from its heavy reliance on drug discovery to more emphasis on production, adding plants and capabilities through a series of deals in the last two years.