February 17, 2015
By Alex Keown, BioSpace.com Breaking News Staff
ALBANY, NY -- A proposal by AMRI (Albany Molecular Research Inc.) to close an API plant in Wales in the United Kingdom could result in 64 employees losing their jobs. The possible plant closing is part of AMRI’s model to enhance business efficiencies and optimize company infrastructure.
AMRI purchased the Holywell site from Excelsyn in 2010 as part of an effort to create a conduit between U.S and European markets. However, the venture has proved unsuccessful, CEO William Marth said during a conference call discussing the company’s 2014 financial results. The site has served as a pharmaceutical ingredient manufacturing base for the company, providing chemical development services and small and large scale API (active pharmaceutical ingredient).
“The original strategy for Holywell site has been to act as a conduit between the Europe and the United States. However, the site has not been able to execute in a way that maximizes value for our customers and shareholders, and it’s no longer aligned to our strategic direction,” Marth said during the call.
A final decision on whether or not to close the plant will be made next month.
“We’ve recognized the uncertainties this creates for our employees and customers and continue to remain engage with these and other key stakeholders through the process,” Marth said.
The Wales site won’t be the first AMRI has shut down. In 2012 the company closed a site in Bothell, Wash. The company has also shuttered a site in Hungary and in Albany.
AMRI, which manufactures Allegra, had a strong 2014 with revenue of $276.6.7 million, up 12 percent from 2013’ $246 million in revenue. The company is predicting an even stronger 2015 with projected revenue of between $335 and $375 million.
Drug Product Manufacturing contract revenue for the fourth quarter of 2014 increased $11.8 million over the same period of 2013 and includes $10.3 million of revenue from Oso Biopharmaceuticals Manufacturing (OsoBio) that was acquired in July 2014.
In January 2015, AMRI acquired a Glasgow, UK-based drug product formulation business for $24 million and expects to complete the previously announced acquisition of SSCI/ West Lafayette, Ind. in February 2015. Both facilities are expected to help AMRI expand its contract pharmaceutical manufacturing capabilities. The Glasgow site specializes in developing clinical stage manufacturing, while the Indiana facility will allow AMRI to expand analytical testing services to include peptides, proteins and oligonucleotides, the company said.
BioSpace Temperature Poll
Will Job Cuts Continue? After a week that saw Quintiles, Sanofi and Actavis slashing almost a 1,000 biotech jobs, BioSpace wonders if the ax will continue to fall. Give us your thoughts about the sector’s “streamlining” below.
