Chemicals supplier Aceto Corp has its sights set on opportunities in the generic drug sector after soaring active pharmaceutical ingredient (API) and intermediates sales helped it to a strong set of quarterly financials.
The firm, which saw revenue from its health sciences segment increase 20 per cent to $62m (€43m) in the three months to March 31, unveiled the plan last week citing its expanding chemical portfolio as the key part of its plan.
“We believe we have a pipeline of new APIs poised to reach commercial levels over the coming years as patents on existing drugs expire, both in the US and Europe.”
Aceto went on to explain that, in addition to new API market opportunities created by the patent cliff, it will also aim to target currently available non-branded medications by establishing itself as a ‘second-source supplier’.
“The opportunities that we are looking for are to supply the APIs for the more mature generics drugs where pricing has stabilized following the dramatic decreases in price that these drugs experienced after coming off patent.”
Rising generics demand
Aceto also set out plans to use its recent purchase, US-headquartered non-branded and over the counter (OTC) drug supplier Rising pharmaceuticals, to expand its global API business.
The firm said that: “We believe that the acquisition of Rising will establish another platform for our growth in Health Sciences business by the expansion of our finished dosage form product offering from both foreign and domestic facilities as well as complementing our core strength of sourcing active pharmaceutical ingredients.”
Intermediates sales slide in Q3
Aceto’s focus on APIs is unsurprising given that the other part of its health sciences business, pharmaceutical intermediates, saw revenue slide some $3.6m in the three months ended March 31.
This decline continued the pattern see over the first three quarters of the fiscal year, during which revenue from pharmaceutical intermediates was, according to Aceto, $2.6m lower than in the year-earlier comparable period.