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AMRI Delights Investors

This article is more than 10 years old.

A bad allergy season makes some people cranky, but it helped make Albany Molecular Research rich this quarter.

Share of Albany Molecular Research soared 15.2%, or $1.74, to $13.21, by the close of trading in New York on Monday after a better-than expected earnings announcement.

The New York-based drug manufacturing had a year-over-year revenue increase of 10.7% to $53.6 million with income increasing 46.9% to $4.7 million, or 15 cents per share. Analysts on average expected earnings of 3 cents per share on revenue of $47.7 million, according to Reuters Estimates.

The company received $8.3 million in royalty revenues pertaining to the allergy drug Allegra and its generic equivalents. Royalty payments during this particularly bad allergy season were up 36.1% from the quarter ending Dec. 31. Contract revenue from discovery services the first quarter of 2008 was $13.3 million up from $9.9 million in 2007. The company said that year-over-year comparisons were not applicable as customer delivery patterns and project timing doesn't correlate with the quarters-end.

“With regard to our recurring royalties from Allegra, we experienced a 15% increase in revenues, demonstrating growing product sales outside the U.S. coupled with favorable currency trends," said AMRI chairman Thomas E. D'Ambra Thomas E. D'Ambra .

The drug company revised its guidance for the full year, increasing earnings per share to a range of 38 cents to 42 cents from a per share range of 33 cents to 37 cents on revenues of $181 million to $185 million.