After some tough times, the picture is improving for Albany Molecular
At first blush, Albany Molecular's second-quarter results seem pretty rough. Compared to last year's second quarter, total revenue declined 12% to $45.6 million, while the firm turned in a loss of $353,000 versus earnings of $7.3 million.
However, the revenue slump stemmed a 55% year-over-year decline in royalty revenue from the firm's rights to Allegra, Sanofi-Aventis'
Two out of three of the company's units showed healthy top-line growth. The discovery services segment saw a 48% jump in revenue to $9.4 million, thanks in part to a deal with Bristol-Myers Squibb
Albany Molecular still has some work to do on its turnaround, and there is no near-term replacement for the company's declining royalty revenue. But the firm has made good progress back from its slump, and that progress seems likely to continue.
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Fool contributor Brian Gorman does not own shares in any of the companies mentioned.