NEW YORK (AP) ¿ Shares of research and development contractor Albany Molecular Research Inc. fell Thursday after the company said its first-quarter profit plunged and it cut its full-year outlook as demand for contract services falls.
The company's clients include biotechnology and pharmaceutical companies, which have been trimming spending as many revamp drug development goals. The ongoing recession has also made it difficult for smaller companies to gain funding for drug development programs, prompting them to cut spending.
Albany Molecular's stock fell 68 cents, or 6.9 percent, to $9.14 in morning trading on the lower profit and a cut outlook. Shares have traded between $7.31 and $19.49 over the last 52 weeks.
Late Wednesday, the Albany, N.Y.-based company said it earned $1.9 million, or 6 cents per share, compared with profit of $4.7 million, or 15 cents per share, during the same period a year prior. Revenue was flat at $54 million.The results topped company guidance for profit of up to 2 cents per share. Contract revenue declined 5 percent to $43.2 million, mainly on lower results from discovery and development services. Royalties and milestone payments rose 31 percent to $10.8 million.