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Albany Molecular Research Q1 Earnings Fall on Reduced Royalty Payments

Posted on: Wednesday, 10 May 2006, 12:07 CDT

By Times Union, Albany, N.Y.

May 10--ALBANY -- First-quarter earnings fell at Albany Molecular Research Inc. as a generic competitor to Allegra cut into royalty payments, the company reported Tuesday.

The Albany-based drug research and discovery firm holds the patents on the manufacturing process for fexofenadine hydrochloride, the active ingredient in Allegra, a prescription allergy medication. Albany Molecular reported royalties fell 40 percent to $7.2 million from $12 million a year earlier. Overall, net income declined to $1.9 million from $5.6 million as revenue fell to $43.4 million from $48.6 million a year earlier.

But the company also reported gains in its discovery services, and small-scale and clinical trial manufacturing, partly closing a $10 million revenue gap from 2005's first quarter that resulted from the discontinuance of a General Electric Co. product that Albany Molecular produced.

"As our results point out today, we have essentially made up almost all of this $10 million gap through growth in new contract business across all of our segments," Thomas E. D'Ambra, the company's chairman, president and chief executive officer, said Tuesday.

Albany Molecular projects its contract revenue will total $150 million to $160 million for all of 2006, a 10 percent to 17 percent increase from 2005.

Shares (Nasdaq: AMRI) gained 52 cents, or 5.3 percent, to close Tuesday at $10.37.

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Copyright (c) 2006, Times Union, Albany, N.Y.

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AMRI,

Source: Times Union

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