- Net Revenue increased 13% vs. prior year quarter, which includes a favorable impact from the adoption of ASC 606 -

- 2018 full year Adjusted Net Revenue Growth and Adjusted EBITDA guidance reaffirmed -

- Agreement to acquire Halo Pharma, broadening capabilities, enhancing revenue growth and expanding customer base -

- Conference call at 8:30 a.m. ET on August 2, 2018 -

EAST RUTHERFORD, N.J., Aug. 02, 2018 (GLOBE NEWSWIRE) -- Cambrex Corporation (NYSE: CBM), a leading manufacturer of small molecule innovator and generic Active Pharmaceutical Ingredients (APIs), reports results for the second quarter ended June 30, 2018.

Highlights

-- Net revenue increased 13% to $152.0 million compared to $134.6 million in the same quarter last year. Excluding the impact of adopting the new revenue standard, ASC 606 – Revenue from Contracts with Customers, net revenue decreased 1%. -- GAAP Diluted EPS from continuing operations increased 61% to $1.21 per share from $0.75 per share in the same quarter last year. The 2018 results reflect a lower tax rate as a result of tax reform in the United States. Excluding the impact of adopting ASC 606, Diluted EPS from continuing operations was $0.87 per share. -- EBITDA increased 22% to $52.2 million compared to $42.6 million in the same quarter last year. Adjusted EBITDA, which excludes the impact of adopting ASC 606, decreased to $37.2 million from $42.6 million in the same quarter last year (see table at the end of this release). -- Net cash was $171.3 million at the end of the quarter, a decrease of $16.2 million during the quarter. -- The Company continues to expect full year 2018 Adjusted net revenue growth, which excludes the impact of foreign currency and adoption of ASC 606, to be between -2% and 2% compared to 2017 and Adjusted EBITDA to be between $150 and $160 million. This does not include the impact of the Halo acquisition (see Financial Expectations – Continuing Operations section below for related explanations and additional financial guidance). -- Entered into a definitive agreement to acquire Halo Pharma, a leading dosage form Contract Development and Manufacturing Organization (CDMO) specializing in product development and commercial manufacturing, for approximately $425 million in total cash consideration.

“Our recent accomplishments mark significant progress toward our goals of investing in increased capacity and expanding our capabilities in order to take advantage of favorable industry trends and provide best-in-class services for our global customers. Most notably, we were pleased to announce the agreement to acquire Halo Pharma, which expands our offerings into finished dose development and manufacturing, while diversifying our customer base and accelerating our revenue growth,” commented Steven M. Klosk, President and Chief Executive Officer.

“We are also encouraged by second quarter performance across our three product categories. We recently added a new late-stage clinical project to our innovator portfolio with the potential to generate between $5 million and $10 million in peak API sales. This brings the total to three new late-stage projects added during the first half of 2018, with the combined potential to generate greater than $25 million in API revenue. Sales of generic APIs and controlled substances were also strong in the quarter.”

Basis of Reporting

The Company has provided a reconciliation of GAAP to adjusted (i.e. Non-GAAP) amounts at the end of this press release. Cambrex management believes that the adjustments provide useful information to investors due to the magnitude and nature of certain amounts recorded under GAAP.

Second Quarter 2018 Operating Results – Continuing Operations

Net revenue was $152.0 million, an increase of $17.5 million, or 13%, compared to the second quarter of 2017. Excluding a 2% favorable impact of foreign exchange compared to the second quarter of 2017, net revenue increased 11%. The increase in volumes is driven by higher custom development products, generic APIs and the adoption of ASC 606, which accelerated revenue recognition for a portion of Cambrex’s portfolio, enabling revenues for certain products to be recognized over time, rather than upon delivery to the customer. Cambrex elected the modified retrospective method which did not require prior periods to be restated. The increases were partially offset by lower pricing. Excluding the impact of adopting ASC 606, net revenue decreased 1%. Gross margins were flat at 43% versus the same quarter last year. Excluding the impact of adopting ASC 606, gross margin was 37%.

Selling, general and administrative expenses were $16.0 million, compared to $18.1 million in the same quarter last year. This decrease was primarily due to lower personnel related costs.

Research and development expenses were $4.1 million, compared to $4.5 million in the same quarter last year. This decrease was primarily driven by the timing of spending on the development of generic drug products.

Operating profit was $44.7 million compared to $35.0 million in the same quarter last year. The increase was primarily the result of higher gross profit and lower operating expenses as described above. Excluding the impact of adopting ASC 606, operating profit was $29.7 million. Adjusted EBITDA was $37.2 million compared to $42.6 million in the same quarter last year (see table at the end of this press release). Income tax expense was $8.7 million resulting in an effective tax rate of 18% compared to $9.2 million and an effective tax rate of 27% in the same quarter last year. The reduction in the effective tax rate reflects the impact of tax reform in the United States.

Income from continuing operations was $40.9 million or $1.21 per share compared to $25.1 million or $0.75 per share in the same quarter last year. Excluding the impact of adopting ASC 606, Diluted EPS from continuing operations was $0.87 per share.

Adjusted income from continuing operations was $24.7 million or $0.74 per share, compared to $25.4 million or $0.76 per share in the same quarter last year (see table at the end of this press release).

Capital expenditures were $8.9 million and depreciation and amortization was $7.5 million compared to $10.7 million and $7.6 million, respectively, in the same quarter last year.

Net cash was $171.3 million at the end of the second quarter, a decrease of $16.2 million during the quarter.

Financial Expectations – Continuing Operations

The following table shows the Company’s current expectations for its full year 2018 financial performance versus its expectations from the previous quarter. These expectations do not reflect the impact of the acquisition of Halo Pharma on 2018 results. The Company expects to issue revised guidance in our third quarter call once the acquisition has closed.

Current Expectations Previous Expectations -------------------- --------------------- Adjusted net revenue growth -2% - 2% -2% - 2% Adjusted EBITDA $150 - $160 million $150 - $160 million Adjusted income from continuing operations per share $2.91 - $3.14 $2.80 - $3.03 Free cash flow $35 - $45 million $35 - $45 million Capital expenditures $70 - $80 million $70 - $80 million Depreciation and amortization $33 - $37 million $33 - $37 million Adjusted effective tax rate 20% - 22% 23% - 25%

Consistent with the Company’s usual guidance practices, these financial expectations are for continuing operations and exclude the impact of any potential acquisitions, divestitures, restructuring activities, outcomes of tax disputes and the adoption of ASC 606 which became effective January 1, 2018. Adjusted net revenue growth expectations exclude the impact of foreign exchange and the adoption of ASC 606. EBITDA, Adjusted EBITDA and Adjusted income from continuing operations per share for 2018 will be computed on a basis consistent with the reconciliation of the current quarter financial results in the tables at the end of this press release. Free cash flow is defined as the change in debt, net of cash during the year. Adjusted effective tax rate excludes certain effects of share-based payments that were possibly deferred under the previous guidance. The tax rate will be sensitive to the Company’s geographic mix of income, changes in the tax laws or rates within the countries in which the Company operates and the effects of certain share-based payments.

The financial information contained in this press release is unaudited, subject to revision and should not be considered final until the Company’s Form 10-Q for second quarter 2018 is filed with the SEC.

Conference Call and Webcast

A conference call to discuss the Company’s second quarter 2018 results will begin at 8:30 a.m. Eastern Time on August 2, 2018 and can be accessed by calling 1-888-208-1711 for domestic and +1-323-794-2575 for international. Please use the passcode 3913181 and call approximately 10 minutes prior to the start time. A webcast will be available in the Investors section on the Cambrex website located at www.cambrex.com. A telephone replay of the conference call will be available through August 9, 2018 by calling 1-888-203-1112 for domestic and +1-719-457-0820 for international. Please use the passcode 3913181 to access the replay.

About Cambrex

Cambrex Corporation is an innovative life sciences company that provides products, services and technologies to accelerate the development and commercialization of small molecule therapeutics. The Company offers Active Pharmaceutical Ingredients (APIs), advanced intermediates and enhanced drug delivery products for branded and generic pharmaceuticals. Development and manufacturing capabilities include enzymatic biotransformations, high potency APIs, high energy chemical synthesis, controlled substances and continuous processing. For more information, please visit www.cambrex.com.

Forward-Looking Statements

This document contains “forward-looking statements,” including statements or tables regarding expected performance, especially those set forth under the heading “Financial Expectations – Continuing Operations,” “Highlights” and those attributed to the President and Chief Executive Officer in this document. These and other forward-looking statements may be identified by the fact that they use words such as “guidance,” “expects,” “anticipates,” “intends,” “estimates,” “believes” or similar expressions. Any forward-looking statements contained herein are based on current plans and expectations and involve risks and uncertainties that could cause actual outcomes and results to differ materially from current expectations. The factors described in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the period ended December 31, 2017 captioned “Risk Factors,” or otherwise described in the Company’s filings with the SEC provide examples of such risks and uncertainties that may cause the Company’s actual results to differ materially from the expectations the Company describes in its forward-looking statements, including, but not limited to, the possibility that conditions to closing the Halo Pharma transaction could not be met or that the benefits from the acquisition may not be as anticipated, customer and product concentration, the Company’s ability to win new customer contracts and renew existing contracts on favorable terms, significant declines in sales of products to our customers, pharmaceutical outsourcing trends, competitive pricing or product developments, market acceptance and adoption rate of its customers’ products, government legislation and regulations (including those pertaining to environmental issues), tax rate, interest rate, technology, manufacturing and legal issues, including the outcome of outstanding litigation, environmental matters, changes in foreign exchange rates, uncollectible receivables, the timing and/or volume of orders or shipments and the Company’s ability to meet its production plan and customer delivery schedules, expected timing of completion of capacity expansions, our ability to successfully integrate acquired businesses, loss on disposition of assets, cancellations or delays in renewal of contracts, lack of suitable raw materials, the Company’s ability to receive regulatory approvals for its products, continued demand in the U.S. for late stage clinical products and the successful outcome of the Company’s investment in new products.

For further details and a discussion of these and other risks and uncertainties, investors are encouraged to review the Cambrex Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including the Forward-Looking Statement and Risk Factors sections therein, and other filings with the SEC. The Company cautions investors and potential investors not to place undue reliance on the forward-looking statements contained in this press release and to give careful consideration to the risks and uncertainties listed above and contained in the Company’s SEC filings. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements.

Use of Non-GAAP Financial Measures

Adjusted net revenue, EBITDA, Adjusted EBITDA, Adjusted effective tax rate and Adjusted income from continuing operations are non-GAAP financial measures. These financial non-GAAP measures exclude the adoption of ASC 606. The Company defines EBITDA as operating profit plus depreciation and amortization expense and Adjusted EBITDA excludes the impact of any potential acquisitions and restructuring activities. Adjusted effective tax rate excludes certain effects of share-based payments that were possibly deferred under the previous guidance. Adjusted income from continuing operations is calculated in a manner consistent with that shown in the table at the end of this press release. Other companies may have different definitions of Adjusted net revenue, EBITDA, Adjusted EBITDA, Adjusted effective tax rate and Adjusted income from continuing operations. Therefore, these measures may not be comparable with non-GAAP financial measures provided by other companies. Adjusted net revenue, EBITDA, Adjusted EBITDA, Adjusted effective tax rate and Adjusted income from continuing operations should not be considered alternatives to measurements required by U.S. GAAP, such as net revenue, operating profit or net income, and should not be considered a measure of Cambrex’s liquidity. Cambrex uses Adjusted net revenue, EBITDA, Adjusted EBITDA, Adjusted effective tax rate and Adjusted income from continuing operations among several other metrics to assess and analyze its operational results and trends. Cambrex also believes Adjusted net revenue, EBITDA, Adjusted EBITDA, Adjusted effective tax rate and Adjusted income from continuing operations are useful to investors because they are common operating performance metrics as well as metrics routinely used to assess potential enterprise value. Cambrex has provided a reconciliation of U.S. GAAP amounts to non-GAAP amounts at the end of this press release.

CAMBREX CORPORATION Statements of Profit and Loss For the Quarters Ended June 30, 2018 and 2017 (in thousands, except per share data) 2018 2017 ---------------------- ---------------------- % of % of Amount Net Revenue Amount Net Revenue --------- ----------- --------- ----------- Gross Sales $ 147,214 $ 134,487 Commissions, Allowances and Rebates 192 649 ------- - ------- - Net Sales 147,022 133,838 Other Revenues, Net 5,024 716 ------- - ------- - Net Revenue 152,046 134,554 Cost of Goods Sold 87,254 57.4% 76,995 57.2% ------- - ------- - Gross Profit 64,792 42.6% 57,559 42.8% Operating Expenses: Selling, General and Administrative Expenses 16,007 10.5% 18,120 13.5% Research and Development Expenses 4,133 2.7% 4,467 3.3% Total Operating Expenses 20,140 13.2% 22,587 16.8% ------- - ------- - Operating Profit 44,652 29.4% 34,972 26.0% Other Expenses/(Income): Interest Expense, Net 17 388 Unrealized Gain on Investment in Equity Securities (5,146 ) - Other Expenses, Net 181 286 ------- - ------- - Income Before Income Taxes 49,600 32.6% 34,298 25.5% Provision for Income Taxes 8,748 9,174 ------- - ------- - Income from Continuing Operations $ 40,852 26.9% $ 25,124 18.7% Loss from Discontinued Operations, Net of Tax (433 ) (94 ) ------- - ------- - Net Income $ 40,419 26.6% $ 25,030 18.6% ------- - ------- - Basic Earnings/(Loss) per Share of Common Stock: Income from Continuing Operations $ 1.23 $ 0.77 Loss from Discontinued Operations, Net of Tax $ (0.01 ) $ (0.00 ) ------- - ------- - Net Income $ 1.22 $ 0.77 Diluted Earnings/(Loss) per Share of Common Stock: Income from Continuing Operations $ 1.21 $ 0.75 Loss from Discontinued Operations, Net of Tax $ (0.01 ) $ (0.00 ) ------- - ------- - Net Income $ 1.20 $ 0.75 Weighted Average Shares Outstanding Basic 33,085 32,629 Diluted 33,642 33,469

CAMBREX CORPORATION Statements of Profit and Loss For the Six Months Ended June 30, 2018 and 2017 (in thousands, except per share data) 2018 2017 ---------------------- ---------------------- % of % of Amount Net Revenue Amount Net Revenue --------- ----------- --------- ----------- Gross Sales $ 286,344 $ 238,198 Commissions, Allowances and Rebates 401 1,243 ------- - ------- - Net Sales 285,943 236,955 Other Revenues, Net 7,200 2,605 ------- - ------- - Net Revenue 293,143 239,560 Cost of Goods Sold 177,496 60.5% 135,126 56.4% ------- - ------- - Gross Profit 115,647 39.5% 104,434 43.6% Operating Expenses: Selling, General and Administrative Expenses 32,862 11.2% 33,511 14.0% Research and Development Expenses 7,752 2.6% 8,357 3.5% Total Operating Expenses 40,614 13.9% 41,868 17.5% ------- - ------- - Operating Profit 75,033 25.6% 62,566 26.1% Other Expenses/(Income): Interest Expense, Net 99 654 Unrealized Gain on Investment in Equity Securities (5,146 ) - Other Expenses, Net 445 687 ------- - ------- - Income Before Income Taxes 79,635 27.2% 61,225 25.6% Provision for Income Taxes 14,534 14,986 ------- - ------- - Income from Continuing Operations $ 65,101 22.2% $ 46,239 19.3% Loss from Discontinued Operations, Net of Tax (624 ) (1,344 ) ------- - ------- - Net Income $ 64,477 22.0% $ 44,895 18.7% ------- - ------- - Basic Earnings/(Loss) per Share of Common Stock: Income from Continuing Operations $ 1.97 $ 1.42 Loss from Discontinued Operations, Net of Tax $ (0.02 ) $ (0.04 ) ------- - ------- - Net Income $ 1.95 $ 1.38 Diluted Earnings/(Loss) per Share of Common Stock: Income from Continuing Operations $ 1.94 $ 1.38 Loss from Discontinued Operations, Net of Tax $ (0.02 ) $ (0.04 ) ------- - ------- - Net Income $ 1.92 $ 1.34 Weighted Average Shares Outstanding Basic 32,990 32,542 Diluted 33,618 33,416

CAMBREX CORPORATION Consolidated Balance Sheets As of June 30, 2018 and December 31, 2017 (in thousands) June 30, December 31, Assets 2018 2017 -------- ------------ Cash and Cash Equivalents $ 171,348 $ 183,284 Trade Receivables, Net 100,224 75,144 Contract Assets 107,083 - Other Receivables 15,417 20,891 Inventories, Net 99,562 138,542 Prepaid Expenses and Other Current Assets 10,589 4,217 -------- ------------ Total Current Assets 504,223 422,078 Property, Plant and Equipment, Net 266,075 254,299 Goodwill 42,864 43,626 Intangible Assets, Net 12,753 13,868 Deferred Income Taxes 1,448 3,198 Other Non-Current Assets 3,532 3,496 -------- ------------ Total Assets $ 830,895 $ 740,565 -------- ------------ Liabilities and Stockholders' Equity Accounts Payable $ 51,596 $ 35,017 Contract Liabilities, Current 8,153 4,707 Taxes Payable 3,388 43 Accrued Expenses and Other Current Liabilities 33,304 42,774 -------- ------------ Total Current Liabilities 96,441 82,541 Contract Liabilities, Non-Current 39,000 39,000 Deferred Income Taxes 9,377 7,806 Accrued Pension Benefits 38,444 41,141 Other Non-Current Liabilities 24,306 25,213 -------- ------------ Total Liabilities $ 207,568 $ 195,701 Stockholders’ Equity $ 623,327 $ 544,864 -------- ------------ Total Liabilities and Stockholders’ Equity $ 830,895 $ 740,565 -------- ------------

CAMBREX CORPORATION Impact of Adopting ASC 606 For the Three and Six Months Ended June 30, 2018 and 2017 (in thousands) Income Statement Second Second Quarter 2018 Quarter 2017 ----------------------------------- --------- Amount As Effect of Without As Reported Change Adoption of Reported ASC 606 --------- ----------- ----------- --------- Gross Sales $ 147,214 $ 18,988 $ 128,226 $ 134,487 Net Revenue 152,046 18,988 133,058 134,554 Cost of Goods Sold 87,254 4,020 83,234 76,995 Gross Profit 64,792 14,968 49,824 57,559 Operating Profit 44,652 14,968 29,684 34,972 Provision for Income Taxes 8,748 3,463 5,285 9,174 Income from Continuing 40,852 11,505 29,347 25,124 Operations Net Income 40,419 11,505 28,914 25,030 Diluted Earnings per Share 1.21 0.34 0.87 0.75 Six Six Months 2018 Months 2017 ----------------------------------- --------- Amount As Effect of Without As Reported Change Adoption of Reported ASC 606 --------- ----------- ----------- --------- Gross Sales $ 286,344 $ 56,268 $ 230,076 $ 238,198 Net Revenue 293,143 56,268 236,875 239,560 Cost of Goods Sold 177,496 24,719 152,777 135,126 Gross Profit 115,647 31,549 84,098 104,434 Operating Profit 75,033 31,549 43,484 62,566 Provision for Income Taxes 14,534 6,634 7,900 14,986 Income from Continuing 65,101 24,915 40,186 46,239 Operations Net Income 64,477 24,915 39,562 44,895 Diluted Earnings per Share 1.94 0.74 1.20 1.38 Balance Sheet June 30, 2018 December 31, 2017 ----------------------------------- --------- Balances As Effect of Without As Reported Change Adoption of Reported ASC 606 --------- ----------- ----------- --------- Current Assets Contract Assets $ 107,083 $ 107,083 $ - $ - Inventory 99,562 (55,129 ) 154,691 138,542 Current Liabilities Taxes Payable 3,388 10,964 (7,576 ) 43 Stockholders' Equity Retained Earnings 510,522 41,134 469,388 429,826

CAMBREX CORPORATION Reconciliation of GAAP to non-GAAP Results For the Three and Six Months Ended June 30, 2018 and 2017 (in thousands) Second Second Quarter Quarter 2018 2017 --------- - -------- Operating Profit $ 44,652 $ 34,972 Depreciation and Amortization 7,502 7,642 ------- - ------ EBITDA 52,154 42,614 Impact of Adopting ASC 606 (14,968 ) - ------- - ------ Adjusted EBITDA $ 37,186 $ 42,614 ------- - ------ Six Six Months Months 2018 2017 --------- - -------- Operating Profit $ 75,033 $ 62,566 Depreciation and Amortization 15,019 14,827 ------- - ------ EBITDA 90,052 77,393 Impact of Adopting ASC 606 (31,549 ) - ------- - ------ Adjusted EBITDA $ 58,503 $ 77,393 ------- - ------

CAMBREX CORPORATION Reconciliation of GAAP to non-GAAP Results For the Three and Six Months Ended June 30, 2018 and 2017 (in thousands) Second Quarter 2018 Second Quarter 2017 --------------------- -------------------- Diluted Diluted EPS EPS Income from Continuing Operations $ 40,852 $ 1.21 $ 25,124 $ 0.75 Impact of Adopting ASC 606 (11,505 ) (0.34 ) - - Stock-Based Compensation 1,553 0.05 2,247 0.07 Stock-Based Compensation Tax1. (1,533 ) (0.05 ) (2,512 ) (0.08 ) Amortization of Purchased Intangibles 510 0.02 500 0.01 Unrealized Gain on Investment in Equity (5,146 ) (0.15 ) - - Securities Adjusted Income from Continuing Operations2. $ 24,731 $ 0.74 $ 25,359 $ 0.76 ------- - ----- - ------ - ----- - Six Months 2018 Six Months 2017 --------------------- -------------------- Diluted Diluted EPS EPS Income from Continuing Operations $ 65,101 $ 1.94 $ 46,239 $ 1.38 Impact of Adopting ASC 606 (24,915 ) (0.74 ) - - Stock-Based Compensation 3,203 0.10 4,033 0.12 Stock-Based Compensation Tax1. (1,998 ) (0.06 ) (5,791 ) (0.17 ) Amortization of Purchased Intangibles 1,023 0.03 898 0.03 Unrealized Gain on Investment in Equity (5,146 ) (0.15 ) - - Securities ----- - Adjusted Income from Continuing Operations2. $ 37,268 $ 1.11 $ 45,379 $ 1.36 ------- - ----- - ------ - ----- -

1. Amount represents the tax effect for non-cash stock-based compensation expense and the immediate recognition of certain effects of share-based payments.2. Diluted earnings per share for adjusted income from continuing operations is based on the weighted number of diluted shares outstanding for the quarter and year. As such, the sum of the quarters may not necessarily equal the full year. In addition, the sum of the line items may not equal due to rounding.

Tom Vadaketh Contact: Executive Vice President & CFO Tel: +201.804.3033 Email: tom.vadaketh@cambrex.com