Cambrex Corporation manufactures active pharmaceutical ingredients, or APIs, that power generic and innovator brand drugs that treat conditions ranging from asthma to dementia to pain. In addition to manufacturing APIs for approved drugs, Cambrex Corporation helps to scale up the manufacturing process for new APIs being investigated in clinical trials. This business model allows the company to avoid the risks associated with clinical trials and costly R&D while enjoying all the benefits of growing drug sales from its customers, which include the largest companies in the pharmaceutical industry.
The contract manufacturer has grown sales from $276 million in 2012 to over $433 million in 2015 -- thats 57% growth. While operating income has increased 155% in the same period, investments in business and facility expansions have limited earnings-per-share growth in the last several years. For instance, Cambrex Corporation recently completed a $50 million upgrade of its Charles City, Iowa facility, adding 7,500 square feet of manufacturing space, a new 36,000-square-foot cold-storage warehouse for its high-value inventory, and the ability to work with more potent APIs. The company also created a 7,500-square-foot manufacturing space that can be customized to customers needs.
Continuous investments in growth have no doubt fueled Cambrex Corporation's five-year tear, but it isn't done yet. The $1.4 billion company recently raised full-year guidance, telling investors to expect revenue growth of at least 10% and free cash flow of at least $60 million. You won't get rich overnight by investing in this stock, but it offers one way to enjoy the wild growth of the pharmaceutical industry -- at a safer distance.
https://www.fool.com/investing/2016/08/23/these-3-stocks-are-up-over-700-in-the-last-5-years.aspx
