By Brady Huggett
Albany Molecular Research Inc. (AMRI) is seeking about $105 million through a proposed public offering of 4.1 million shares, 3 million of which will be offered by the company and 1.1 million shares by stockholders.
AMRI's stock (NASDAQ: AMRI) gained 6 cents Thursday, closing at $35. The company will not get proceeds from shares sold by existing stockholders, including 700,000 shares being offered by Aventis Pharma.
The company plans to use the money for general corporate purposes as well as for working capital. It also is looking at possible acquisitions.
AMRI focuses on small-molecule drug discovery technology and is a provider of integrated chemistry research and development services to the pharmaceutical and biotechnology industries. The company went public in February 1999 with a stock offering of 2.5 million shares at $20 per share, raising $50 million.
Albany's collaboration with DuPont Pharmaceuticals Co., initially worth $6 million, is for drug discovery and development projects. In November 1999, the collaboration with DuPont was expanded, with AMRI receiving $8 million in 2000 and scheduled to receive $10 million each year following. The agreement is continued on a year-to-year basis.
Albany also acquired EnzyMed Inc. in September 1999, completing a stock swap that was worth $20.6 million.
Albany posted increases in net income and revenue in the second quarter of 2000, as well as a 2-for-1 stock split. The company listed a $5.9 million net income for the second quarter and diluted earnings per share of 38 cents (pre-stock split). After the sale, Albany will have approximately 33 million common shares outstanding. It had cash and equivalents of about $29 million on June 30.