Cambrex bags new significant API supply agreement

Cambrex bags new significant API supply agreement

7:04 AM, 16th August 2012
Cambrex bags new significant API supply agreement
Shawn Cavanagh, Chief Operating Officer, Cambrex.

EAST RUTHERFORD, US: Cambrex Corporation will supply an active pharmaceutical ingredient (API) for a customer’s phase 3 programme during 2013 and 2014. Under the non-exclusive supply arrangement, Cambrex will manufacture and deliver phase 3 and pre-launch quantities of this product candidate. This agreement is expected to contribute over $20 million to 2013 revenues and potentially more in 2014 depending on regulatory developments, the timing of completion of Cambrex’s capacity expansion related to this opportunity and meeting key product delivery milestones.

“We are privileged to partner with this important new customer on such a significant project and are excited about successfully executing our capacity expansion so we can help our customer get this product candidate to market as quickly as possible. We continue to be excited about the pipeline of opportunities and are focused on making sure we have the resources in place to facilitate ongoing growth,” said Shawn Cavanagh, Chief Operating Officer, Cambrex.

In order to meet the demand, Cambrex will invest significant capital over the remainder of 2012 and in early 2013 to expand multipurpose large scale cGMP assets. Capital expenditures related to this expansion, which includes concurrent investment in local manufacturing capacity to support other important growth initiatives, are expected to total approximately $19 million. The agreement provides for a $9.5 million reservation fee to be paid to Cambrex within the next month as an advance against revenues to be earned in 2013.

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