More specifically, Marth told investors that if AMRI is going to play a larger in the global generics business, they’re going to need to have space in India. And although AMRI currently has a large-scale manufacturing site in Aurangabad, India, Marth noted that the facility is not US FDA approved yet – and though the company has petitioned the FDA to get it approved, Marth said AMRI is getting “impatient.”
Although Marth did not reveal which company AMRI has its eye on, he did say the company is looking to do “a little bit larger” deals than what has been done more recently. Those more recent deals include the $41m acquisition of CDMO Cedarburg, the $110m acquisition of OsoBio, and the $60m acquisition of two Aptuit facilities. Marth characterized these as “strategic deals,” or “businesses we pursued to fill certain holes.”
He noted that the company would like to add to its API network or to add a company that specializes in steroids or more controlled substances. Despite the vagueness of the comments, Marth said he spoke specifically with an Indian site with FDA approval and DMFs (drug master files) filed from India. “API is the focus,” he added, noting the FDA’s more recent ramping up enforcement activities in India, which allows AMRI to do its due diligence and “look at prior inspections and what the follow up has been.” Though he also cautioned that the “minute I say that something else could pop up.”
“We see pharma outsourcing now at a much greater rate than it ever has, which is a positive trend for us,” Marth said, noting AMRI is looking for companies “that add capabilities to create a company that excels in technologically-difficult areas.”
Marth also confirmed the closing of its API facility in Wales, which he said is “not because it can’t be profitable,” but because it’s “not meeting the strategic needs of the corporation.” The company also closed a site in Syracuse, NY.
He also reiterated the desire to be a $1.35bn company in the next five years.