Sixty-four jobs are at risk as a result of AMRI's ($AMRI) proposal to close an API plant in Wales. The U.S. company says a final decision for the plant will come after a consultation with employees and discussions on ways to reduce "redundancies" at the former Excelsyn facility.
|AMRI CEO William Marth|
New York-based AMRI purchased the plant--which provides chemical development and small- to large-scale API manufacturing services--in 2010 to act as a conduit between Europe and the U.S., AMRI CEO William Marth said in a release.
"However, the site has not been able to do this in a way that maximises value for our customers and shareholders and is not aligned to the new strategic direction of the company," Marth said in the release.
Last week's closure proposal follows AMRI's $60 million purchase in January of two Aptuit facilities--in Glasgow, Scotland, and West Lafayette, IN--to expand its contract manufacturing capabilities. The Glasgow facility specializes in developing clinical stage manufacturing, while the Indiana site can help the company expand analytical testing services to include peptides, proteins and oligonucleotides, according to the company.
Also last week, AMRI announced its fourth quarter and full-year 2014 results; the company reported a 35% increase over 2013's fourth quarter revenues, jumping to $80.7 million in Q4 revenue. Full-year contract revenue increased 19% to $250 million, and the company expects revenue between $335 and $370 million in 2015. Despite the revenue gains, the company posted a $1.9 million loss in the fourth quarter and a $3.3 million loss on the full year due in part to a weather-related shutdown and declining demand for discovery services.
Last year, AMRI completed two deals--worth $150 million total--to further develop manufacturing capabilities. It paid $41 million for Grafton, WI-based API contract manufacturer Cedarburg Pharmaceuticals and $110 million deal for Oso Biopharmaceuticals Manufacturing to add that company's expertise in complex injectable drug products.
- here's the plant closure release and earnings statement