Cambrex Wins Supply Agreement

Cambrex Corp. has entered into an agreement to supply API for a new customer’s Phase III program during 2013 and 2014. Cambrex will manufacture and deliver Phase III and pre-launch quantities of the product candidate for the undisclosed client. The agreement is expected to contribute more than $20 million to 2013 revenues, as well as additional revenues in 2014 based on regulatory developments and product delivery milestones.
 
Cambrex plans to invest approximately $19 million to expand its large-scale cGMP assets. Cambrex will receive a $9.5 million reservation fee as an advance against revenues to be earned in 2013.
 
Shawn Cavanagh, chief operating officer, said, “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 in front of us and are focused on making sure we have the resources in place to facilitate ongoing growth.”