Driven by ‘significant’ organic growth, Almac revenue tops £500m for first time

Almac Group has reported a 19% growth in revenue to £531m ($709.86m) – a first for the company as it continues to invest globally and drive a strategy of strategically entering new markets, says finance director.

The contract development and manufacturing organization (CDMO) also reported an increase in pre-tax profits, which were up from £27m ($36.08m) in 2016 to more than £33m ($44.09m), per Almac’s annual report with results for the year ending September 30, 2017. 

Over the last 5 years, the company has experienced “significant” organic growth in its established business “by offering clients a wider, more innovative range of services,” Kevin Stephens, Almac Group finance director told Outsourcing-Pharma.com.

“To achieve this as a Group, Almac has invested significantly in global facilities and innovation in our service offerings. We have supplemented this strategy with the acquisition of smaller companies where appropriate,” he added.

Geographically, Stephens said the company has continued to drive a strategy of strategically entering new markets to provide local and global client support.

In this same vein, Almac’s global employee figures have increased by more than 10% to 4,407. Of this number, 2,920 are employed at Craigavon, which represents an increase of 10% (270) over the previous year, according to the company.

Further revenue also has resulted from long-term research and development projects, which Stephens said are atypical, but have become “a more regular feature” over the last five years.

Additionally, the company benefited from “upfront and other payments relating to the out-licensing of oncology products” developed in-house, according to the CDMO.

Almac invested heavily throughout 2017 to add new lab and office facilities and currently is undergoing work on what it says will be one of the largest pharmaceutical cold storage facilities in Europe.

The company in January of this year also announced an investment of £30m ($41.65m) to expand its clinical and commercial drug supplies capabilities at its European Campus in Ireland as the company, and others, prepare for the UK’s exit from the EU.

The expanded facility – initially announced in January 2017 – is scheduled to be operational by January 2019.