AMRI acquires UK-based Excelsyn in $19m deal

19 February 2010 02:02  [Source: ICIS news]

SAN FRANCISCO (ICIS news)--US fine chemical manufacturer Albany Molecular Research Inc. (AMRI) said on Thursday it has acquired UK-based Excelsyn, an active pharmaceutical ingredient (API) and pharmaceutical intermediate manufacturer, for $19m (€14m).

The deal gives AMRI a significant foothold in the European market and a competitive cost advantage, while giving Excelsyn the size it always needed to fully make use of its good customer relationships, the companies said at Informex USA.

“Excelsyn’s cost structure will make AMRI much more competitive in both Europe and US. We will be able to bid very cost competitively, close to India standards, in some cases,” said Steve Jennings, senior vice president, sales, marketing and business development at AMRI.

“We have very good customer relationships and unfortunately we can’t exploit them properly (as) we’re just not big enough, and because of our size we’ve ended up in tactical supply positions. Now with a much bigger organizations, we can exploit those relationships and move to strategic supply positions to make much bigger deals,” said Excelsyn CEO Ian Shott.

Excelsyn’s manufacturing services include pre-clinical and Phase I-Phase III product development and commercial manufacturing services for approved products.

The company is also good with speed of service, another cost competitive advantage.

“The main thing we’ve looked at is how to do things very fast. We can go from start (a drawing of a molecule) to finish (making product in a plant and delivering to the customer) within three months. Not many people can do that,” said Shott.

($1 = €0.73)

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By: Feliza Mirasol
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