Swiss API manufacturer Siegfried reported that higher API sales and custom synthesis orders drove a profit increase in the first half of the year and predicted that recent capacity hike and new China plant would help maintain positive momentum.
Zofingen-based Siegfried saw net profits increased 41% to CHF18.5m ($20m) in the six months to June 30 with revenues climbing 10% to CHF196.7m.
The firm said growth was driven by the combined impact of higher demand for active pharmaceutical ingredients (APIs) – specifically controlled substances – and its acquisition of sterile filling contractor Alliance Medical Products (AMP) last June .
Siegfried also said that an order for its exclusive synthesis business also benefitted ingredient sales and that its finished dosage form business also saw growth, with revenue climbing nearly 28 % to CHF62m.
The Swiss firm also said recent expansion of its manufacturing and pilot plant in Pennsville, New Jersey, US – where it increased warehouse capacity – and at its production facility in Malta had worked as part of a strategy designed to increase profitability.
“Targeted investment in capacity expansion was made in Pennsville, New Jersey, and Malta. Headcount increased to 885 full-time positions. Projects aimed at further stepping up sales and profitability are progressing to schedule.”
It also predicted that a facility it is building in Nantong, China would help drive its business. The under construction plant – plans for which were announced in 2012 after the AMP deal – will produce APIs and solid dosage form and is due to be operational in 2014.
Siegfried was similarly optimistic about the effect the in-progress revamp of its manufacturing plant in Zolfingen will have on its bottom line and facilitate greater interaction between its Asian and European businesses.
The firm said that: “The new building will replace several older plants at the Zofingen site which no longer comply with efficiency requirements and generate high maintenance.
“The two plants in Nantong and Zofingen are based on an identical technical concept in order to facilitate product transfers from a regulatory and technical perspective.”
Siegfried held its earning call earlier this morning and was not available for comment at the time of publication.