Albany-based drug discovery and development firm AMRI reported financial and operating results Monday that showed a net loss in the fourth quarter but a year-over-year revenue increase.
AMRI’s fourth quarter revenue was $47.2 million, up 1 percent from $46.6 million in fourth quarter 2006, according to regulatory documents filed with the U.S. Securities and Exchange Commission.
Total revenue for 2007 was $192.5 million, up 7 percent from 2006.
Using U.S. Generally Accepted Accounting Principles, AMRI’s net income for 2007 was $8.9 million, 27 cents per diluted share, up from $2.2 million and 7 cents per share in 2006. The company had a GAAP net loss of about $800,000 in fourth quarter 2007, a loss of 3 cents per share, about even with fourth quarter 2006.
“Unfortunately the fourth quarter fell below our expectations and overshadowed the solid first three quarters and the solid progress achieved on several fronts,” AMRI Chairman, President and CEO Thomas D’Ambra said in a conference call Monday.
AMRI, formerly known as Albany Molecular Research Inc., had declining revenues in its discovery services contract revenue, which posted $11.5 million in revenues, down 6 percent from fourth quarter 2006. Its large-scale manufacturing, which had $17.7 million in revenue, was down 6 percent and recurring royalties from the company’s blockbuster drug Allegra were $6.1 million in the fourth quarter, down 4 percent from last year.
The company’s fourth quarter development and small-scale manufacturing contract revenue was $11.4 million, up 22 percent from $9.3 million in fourth quarter 2006.
Annual figures were more favorable. In 2007, AMRI’s development and small scale manufacturing contract revenues were up 26 percent to $45.4 million and discovery services were up 5 percent to $41.6 million, Allegra royalties were up slightly to $27.1 million, but large-scale manufacturing revenues declined 1 percent to $76.3 million.
D’Ambra said AMRI has agreed to provide discounted pricing in 2008 for GE Healthcare, the largest customer of its large-scale manufacturing business.
“While this will result in an impact to the profit margin of large-scale that was unexpected, we believe our decision was in the best interest of the business,” D’Ambra said. “Although there is no guarantee that we will be able to continue our relationship with GE Healthcare beyond 2010, we anticipate beginning discussions in 2008 to [establish] a potential contractual relationship beyond the current term.”
AMRI Chief Financial Officer Mark T. Frost projected contract revenue for the first quarter and full year of 2008 to remain flat at $38 million to $42 million.