Cambrex offers many Active Pharmaceutical Ingredient (API) products and a variety of

services specialized for custom drug development and manufacture. We provide services
such as route selection, process & analytical development, process optimization & scale-
up, safety assessments, and product formulation. Cambrex also manufactures an
extensive list of active pharmaceutical ingredients (APIs), intermediates, controlled
substances, fine chemicals, and chiral amines.

The decrease in 235 M USD is primarily due to lower volumes of an active

pharmaceutical ingredient ("API") that utilizes the Company's polymeric drug delivery
technology, lower sales of two APIs manufactured under long-term supply agreements
and lower custom development revenues, all due to the timing of orders throughout 2009.
Volumes of a feed additive for which a contract expired earlier in 2009 were also lower.
Partially offsetting these decreases were increased generic revenues resulting from
improved order patterns.
Asian competitors have increased their capabilities in drug substance manufacturing and
finished dosage form drugs in recent years. There has been a growing impact on the
volumes sold of the Company’s niche products and the presence of these competitors in
the market has resulted in downward pricing pressure on generic APIs and certain
development services for clinical phase products. Regulatory compliance and product
quality may determine the long term impact of these competitors.
Products and services are sold to a diverse group of several hundred customers, with one
customer, Gyma Laboratories of America, Inc. (“Gyma”), a distributor representing
multiple customers, accounting for 11.5% of 2009 sales. One customer, Gyma, a
distributor representing multiple customers, accounted for 11.5% of consolidated gross
sales for 2009. Two customers each account for 10% of consolidated gross sales for the
years ended December 31, 2008 and 2007. One customer, Warner Chilcott plc, with
which a long-term sales contract is in effect, account for 10.0% and 11.2% of
consolidated sales for 2008 and 2007, respectively. The second customer, Gyma,
accounted for 11.8% and 12.5% for 2008 and 2007, respectively. One product, a gastro-
intestinal API sold to multiple customers, accounted for 12.7% of 2009 sales. No one
customer accounted for more than 10% of 2009 sales of this product.
The Company spent $7,929, $7,590 and $12,157 in 2009, 2008 and 2007, respectively,
on R&D efforts.
In February 2007, the Company completed the sale of the businesses that comprised the
Bioproducts and Biopharma segments (excluding certain liabilities) to Lonza for total
cash consideration of $463,914, including working capital adjustments.
Three API facilities in Italy, Sweden, US(Iowa).
The Company experienced lower generic API sales due to competitive pricing. Sales of
controlled substances, which the Company defines as drugs falling under Schedule II of
the U.S. Drug Enforcement Agency's classification system, showed strong growth in
2009. The Company also continues to develop several new products utilizing its
proprietary polymeric drug delivery technology. Sales of a feed additive were lower as a
result of exiting the product line In 2008.
All figures in table in thousands $ :
 2009 2008 2007

APIs and
pharmaceutical 212,64 220,72 220,38
intermediates $ 4 $ 2 $ 6
Other 23,633 28,896 32,188

236,27 249,61 252,57

Total $ 7 Thousand $ 8 $ 4

The following table shows gross sales to geographic area for the years ended December 31, 2009, 2008 and
2007:

2009 2008 2007

North
America $ 80,830 $ 86,631 $ 85,644
136,53 143,54 150,69
Europe 4 2 2
Asia 10,495 11,440 9,125
Other 8,418 8,005 7,113
236,27 249,61 252,57
Total $ 7 $ 8 $ 4
The Company maintained a robust pipeline of custom development projects during 2009
and its portfolio currently includes 12 products for which the Company expects to
manufacture products for its customers’ phase III clinical trials. With a broad portfolio of
products and services in the API market, the Company remains profitable and has a solid
platform for future growth.

The Company has a $200,000 revolving credit facility of which $120,800 was
outstanding at December 31, 2009. This facility expires in April of 2012. If the
Company is unable to generate sufficient cash flow or otherwise obtain funds necessary
to make required payments on the credit facility, it will be in default. This current debt
arrangement requires the Company to comply with specified financial ratios. The
Company’s ability to comply with these ratios may be affected by events beyond its
control.

All figures in table in thousands $ :