AMRI expands sterile API capacity in Europe

LSNE lyophilization vials
CDMO AMRI, like other contractors, has expanded its aseptic capabilities to meet growing demand for sterile drugs.

CDMO Albany Molecular Research Inc., which was recently acquired by private investors, has bulked up its aseptic API capacity as it continues to expand globally.

The Albany, New York, contractor says it has more than doubled its current bulk API aseptic manufacturing capacity with the addition of a new line at its facility in Valladolid, Spain. The expansion will also work in conjunction with its aseptic API manufacturing at plants in Bon-Encontre and Tonneins, France. The company said it also completed an aseptic prefilled syringe line at its facility in Albuquerque, New Mexico.

RELATED: AMRI scooped up in $920M deal as contract manufacturing M&A rolls on

In August, private equity investors The Carlyle Group and GTCR completed a $920 million deal to acquire the small CDMO, which has been growing through buyouts. In August, in its last quarterly report as a public company, AMRI reported a $10.2 million net loss on $173 million in revenues, which were up 41.5% from the same quarter a year ago.

Last year, AMRI picked up Lodi, Italy-based Euticals in a $358 million deal. It got API facilities primarily in Italy, Germany, France and Springfield, Missouri, with the deal. In 2014, it did a couple of deals for smaller companies.

RELATED: Patheon buyout complete as 2 deals and $12.7B transform CDMO industry

There has been significant consolidation in the contract manufacturing market as a handful of companies have bought competitors to get their hands on specialized services or geographic reach. That in turn has attracted even bigger companies that see growth in the field as a good bet, particularly those with sterile manufacturing expertise.

Lonza, the global CDMO leader, completed a $5.5 billion deal in July to buy U.S.-based contract capsule and drug producer Capsugel. The next month, Waltham, Massachusetts-based Thermo Fisher completed its $7.2 billion deal to buy Patheon. The Durham, North Carolina-based CDMO was itself sewn together through a series of M&A deals.   

RELATED: Catalent doubles down on biologics with $950M deal for Cook Pharmica

With the growth of biologics, many contractors have been adding or expanding sterile capacity, like AMRI has done in Spain. New Jersey-based Catalent recently agreed to pay $950 million to buy Cook Pharmica to get its extensive biologics manufacturing operation in Bloomington, Indiana. In August, CDMO Avara Pharmaceutical Services snapped up a former Hospira sterile manufacturing plant in Liscate, Italy, from Pfizer.

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