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GEN News Highlights : May 21, 2007

AMRI Acquires Manufacturing Facilities in India for $11M

Purchase also includes land to expand operations with a $15-million investment.

Albany Molecular Research (AMRI) bought two pharmaceutical manufacturing sites along with additional land for future expansion in Aurangabad and Navi Mumbai, India.

AMRI will acquire the assets, including facilities, employees, products, and equipment, of Ariane Orgachem in Aurangabad and Ferico Laboratories in Navi Mumbai for approximately $11 million in cash. All of the facilities are currently owned by the Runwal Group and manufacture a range of pharmaceutical intermediates and bulk active ingredients, including treatments for diabetes, heart disease, and asthma.

“Initially, the purchase of these sites augments and provides a reliable and cost-effective supply chain for AMRI’s U.S.-based manufacturing operations. It offers us the flexibility to produce raw materials and process intermediates to support our Rensselaer, NY plant," says AMRI’s chairman, president, and CEO, Thomas E. D’Ambra, Ph.D.

“Longer-term, as we increase capabilities in India, we expect to leverage AMRI’s small-scale/development resources on two continents, including our laboratory operations in Hyderabad, India, and offer our customers cost-competitive solutions for their outsourcing needs.”

As part of the purchase, AMRI will obtain additional land in Aurangabad and plans to invest approximately $15 million to expand capabilities over the next three years. The proposed expansion includes increasing capacity as well as bringing these facilities into compliance with FDA regulations for manufacturing clinical trial materials and commercial drug substances.