The contract research and development company acquired Euticals for $358m and expects to generate operational synergies of $13 to $15m over the next three years.
“Market research points to continued growth in pharmaceuticals market and continued strength in outsourcing of manufacturing by pharmaceutical companies. With respect to API, branded companies are emphasizing their core competencies in sales and marketing. Generic companies are finding that the manufacture of API is not the same as drug products and many are minimizing efforts in API or divesting their assets in that area," William S. Marth, AMRI's president and CEO, told us.
The company estimates that the API market AMRI is targeting is $16 to $20bn annually and growing. According to a recent report my Transparency Market Research, the global API market is predicted to reach 185.9$bn by 2020.
"The acquisition of Euticals will provide us an established custom synthesis presence in Europe and will further build on our expertise in complex APIs, positioning AMRI as a preeminent provider of contract research, development and manufacturing services to the pharmaceutical industry," said Marth in the company's announcement.
"Euticals' expertise with niche and high barrier to entry technologies and products, including certain tetracyclines, monobactams, sterile and fermented APIs and controlled substances, will be a tremendous asset to us,” he added.
The acquisition will also expand AMRI's generics portfolios as well as significantly grow its customer and revenue base. Specifically, Euticals' customer base of more than 400 will provide AMRI with new partners in pharma, biotech, and generics.
As part of the acquisition, AMRI will obtain an API portfolio, including 50 active US Drug Master Files (DMFs), 17 EU Certificates of Suitability (COS) or Compliance with the European Pharmacopeia (CEP), 13 Japanese DMFs, and 6 South Korean DMFs.
The next step will be to integrate Euticals into AMRI, Marth told us. "We will look to build out API in four key areas, both organically and inorganically: controlled substances, steroids and hormones, custom and complex chemistry, and peptides and proteins."