AMRI Set To Purchase OsoBio For $110 Million
Albany Molecular Research Inc., known as AMRI, has announced that it will be acquiring Oso Biopharmaceuticals Manufacturing. The announcement was made official on Monday of this week. This move suggests that AMRI is trying to set itself up to be one of the top suppliers of custom drug development products and services, The Albany Business Review said in an article earlier this week. The deal is expected to cost AMRI $110 million.
Oso Biopharmaceuticals is based out of Albuquerque, New Mexico. Oso is a contract manufacturer of injectable drugs. The company focuses on liquid fill and lyophilized products, in addition to highly potent compounds, cytotoxics, proteins, peptides, vaccines, and monoclonal antibodies, among other pharmaceutical capabilities. AMRI became extremely successful after discovering and developing the active ingredient in Allegra, a popular allergy drug product. However, the company is looking to branch out as the patent rights for Allegra are set to expire and the company loses the development royalties from what is its biggest money maker.
William Marth, the president and CEO of AMRI, released a statement regarding the company’s acquisition of Oso Biopharmaceuticals. “The acquisition of OsoBio is highly complementary to our finished dose manufacturing business, and is consistent with our strategy to be the preeminent supplier of custom and complex drug development services and products to the pharmaceutical industry,” Marth said.
It is believed that AMRI will be financing the deal through cash that the company currently has on hand. AMRI posted $246 million in revenue in the past year. OsoBio is expected to continue to operate as an independent company within AMRI’s drug product business unit.
AMRI has made an effort to acquire promising companies in recent months, as the patent rights on Allegra are set to expire. In early April, the company announced that it would be acquiring Cedarburg Pharmaceuticals, a company that focused on the development and manufacture of complex active pharmaceutical ingredients for branded and generic drugs. The deal for Cedarburg was for a total of $41 million. AMRI stated that the acquisition would allow the company to scale up manufacturing at lower costs.