API challenge for Cambrex

Despite Q2 sales rising 5% to $66.2m, Cambrex said its marginon sales decreased to 29.9% from 37.9% of sales. Cambrex said its lower sales of generic APIs were partially offset by higher custom manufacturing revenues. The company put the decrease in margins down to an unfavorable product mix, lower pricing on its largest API, and higher costs associated with the validation of the new API finishing facility in Milan, Italy.
Cambrex