AMRI is building up its contract manufacturing operations and has completed a $110 million deal for Oso Biopharmaceuticals Manufacturing to add that company's expertise in complex injectable drug products to its stable.
AMRI announced in May that it had struck a deal for the Albuquerque, NM-based company. It said that OsoBio's large-scale production capabilities would be a nice compliment to its own in early-stage drug manufacturing. OsoBio's facilities include four suites for compounding and formulation, vial filling up to 100 cc's, head filling, labeling and 1,230 square feet of lyophilization capacity. It also has a 130,000-square-foot DEA-compliant warehouse with 10,000 square feet of ambient storage.
AMRI has said that OsoBio's projected $58 million to $60 million in 2014 revenue will pay off right away, adding $3 million in cost synergies within a year. After a string of quarterly losses for AMRI, the small pharma services firm began revamping its business and has been finding success with manufacturing.
The OsoBio deal comes on the heels of its April buyout of Grafton, WI-based active pharmaceutical ingredient (API) contract manufacturer Cedarburg Pharmaceuticals. IT has forecast that Cedarburg could add as much as $14 million to AMRI's 2014 revenue, which could reach nearly $300 million.
- here's the release