AMRI stock takes a hit

Contract research firm Albany Molecular Research Inc. saw its stock drop 23% to $12.99 per share last Tuesday following the announcement that Barr Pharmaceuticals and Teva Pharmaceutical Industries plan to launch a generic version of Sanofi-Aventis' allergy drug Allegra. AMRI holds the patent on fexofenadine, Allegra's active ingredient. Bank of America Securities analyst Frank H. Pinkerton writes that Allegra royalties netted AMRI $43 million in 2004 and had been expected to reach $47 million in 2005. He now expects royalties for this year to total $40 million. Sanofi has filed patent-infringement lawsuits against both Barr and Teva that are not expected to be settled until next year.