Albany Molecular Research, Inc

Albany Molecular Research, Inc (AMRI - Snapshot Report) has set a new 52-high coming off of a spectacular earnings announcement in August. The company has also initiated a Phase I study on a proprietary oncology drug and raised its full-year 2008 outlook.

Company Description

Albany Molecular Research, Inc. provides an extensive list of research and development services for pharmaceutical companies, such as drug development and chemistry research in addition to some small-scale production. The company was founded in Albany, New York, has approximately 1,200 employees, and carries a market cap of $575 million.

A 140% Earnings Surprise

On August 6th Albany Molecular reported second-quarter earnings of $5.7 million which. After adjusting for a restructuring charge, that translates to 24 cents per share. The consensus estimate was only 10 cents per share, yielding a 140% earnings surprise.

Revenue saw a 17% spike, up to $57.9 million for the quarter. Much of the increase in revenue is due to a the Discovery Services segment, which shot up 54%.

Raising Guidance

After the stellar earnings report, the company raised its 2008 expectations. Albany molecular now expects between 48 and 52 cents per share, up from between 38 and 42 cents.

Analysts have raised their estimates even higher. The current year consensus estimate is up 42%, up to 54 cents per share, over the past two months. The consensus estimate for next year has increased to 67 cents per share from 57 cents, an 18% increase in that same time period.

Trial Underway for Oncology Drug

Albany Molecular announced it is starting its Phase I study of a new drug on August 18th. The oncology drug is designed to prevent cell mitosis, essentially killing cancer cells.

While this is not a new concept, ALB109564(a) has potential to be superior to current tubulin inhibitors used in chemotherapy. Up to 40 patients will be the subjects of the study.

The Chart

Shares of AMRI have been up sharply in recent months. Since the August 6th earnings announcement they have set a new 52-week high of $19.05 per share and continue to trade near that level. Take a look at the chart below.