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Albany Molecular Research Inc. Message Board

  • next_best_investment next_best_investment Mar 18, 2002 2:53 PM Flag


    Hi guys,
    i am new to this board and i would like to have more information about this co...
    when you look at the ratios and its valuation, i must admit it seems cheap...

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    • AMRI gets 40% of its annuals revs from royalties related to the allergy medication allegra. this high % return is nearing its end, especially with the recent announcement the claritin will soon be available over the counter. The company is doing its best to grow in light of this, the thats a large amount of money to make up for, so this is mired in a trading range from apprx 20 -30 and will stay there for the forseeable future. good luck.

      AS for competitors, they are small shops and many are popping up as imitators, this also hurts the companies prospects in my opinion. nonetheless, this is a strong growing company, but don't look for it to see the 60's again for a long time!


      • 2 Replies to puckering_amos
      • That 40% will in all likely hood go down as suggested. It won't be for some time to come. However, the the amount it will be reduced is still cloudy. SGP has made the move to go otc to both block generic versions of the drug from hitting the market anytime soon and gain traction on the otc market when the generics do in fact come. Many of us allergy sufferers know that allegra far surpasses sgp's clariton. Sgp will tell you that if they block the generics and go otc, they may even be able to keep the same price or possibly raise it.
        Even when it's a full generic world, amri still will receive royalties from the drug at any price.
        The company continues to grow, open new research facilities, and does business with all the big boys. Tick-tock my friend, the downside risk is small but upside, it's just a matter of time. All imho.

      • Last May an FDA advisory panel said Claritin and two competing products -- Pfizer's Zyrtec and Aventis' Allegra -- were safe enough to be sold over-the-counter.

        The FDA, which has said it agrees with the panel's finding, is expected to make a formal ruling in a few weeks. What remains unclear is whether the FDA would force the companies to switch the products over-the-counter, and if it has the power to do so.

        Schering-Plough is under more pressure than Pfizer or Aventis because Claritin accounted for about 31 percent of the company's sales and it is expected to lose patent protection in December.

        This will not happen until next year when Schering Plough's patent ends

        For the fiscal year ended 12/31/01, revenues rose 48% to $98.5 million. Net income rose 46% to $34.4 million. Revenues benefited from an increase in the number of projects under contract and increased sales of fexofenadine HC1 by the licensee.

        In the next twelve months, the company plans to:

        continue strong growth of chemistry fee-for-service revenues;
        expand number of relationships utilizing technologies capable of providing milestone or milestone and royalty opportunities;
        establish strategic collaboration(s) with one or more health care companies encompassing bundled drug discovery capabilities with significant downstream participation opportunity;
        establish partnership encompassing ongoing proprietary research; and
        expand proprietary technology infrastructure

        The company also said it had signed a drug-discovery pact with drug giant Bristol-Myers Squibb Co. (NYSE:BMY - news). The agreement replaces a deal between Albany Molecular and DuPont Pharmaceuticals Co., which Bristol-Myers acquired last year from DuPont Co. (NYSE:DD - news).

        Under the new three-year deal, Bristol-Myers will transfer intellectual property to Albany Molecular, and Albany Molecular will provide fee-for-service chemistry-based drug-development services in support of Bristol-Myers' research efforts.

        This stock is a winner, easy bucks without the worry.

21.14+0.06(+0.28%)Jul 31 4:00 PMEDT