ALBANY MOLECULAR RESEARCH, INC.2015 ANNUAL REPORT TO SHAREHOLDERS

STRONGER PARTNERSHIPS.DEEPER COLLABORATION.BETTER DECISIONS.

A GLOBAL SERVICE& PRODUCT OFFERING

Discovery and Development Services. API. Drug Product.

Albany, NY / Discovery Services / Chemical Development / Analytical Development / Small-Scale Manufacturing

Buffalo, NY / Discovery Services

Rensselaer, NY / Large-Scale cGMP / API Manufacturing

Lebanon, NJ / Analytical & Testing Services

Burlington, MA / Aseptic Fill & Finish Manufacturing / Lyophilization / Stability Testing

Grafton, WI / cGMP API Manufacturing / Process Development / Support Services

West Lafayette, IN / Analytical Services / API Manufacturing / Drug Product & Delivery / Biochemistry Services / Problem-Solving Services

Albuquerque, NM / Large-Scale Aseptic Drug Product Manufacturing / Potent Compounds

Glasgow, UK / Formulation Development / Small-Scale Aseptic Drug Product Manufacturing

Malta / API Manufacturing

Valladolid, Spain / Sterile Capabilities / API Manufacturing

Leon, Spain / Drug Product Manufacturing

San Cristobal, Spain / Large-Scale Fermentation

Singapore / Discovery Services

Hyderabad, India / Chemical Development / Small-Scale Manufacturing

Aurangabad, India / Large-Scale API Manufacturing

LETTER TO OURSHAREHOLDERS

2015: A Year of Strategic Transformation

Dear Shareholder:

AMRI is in the midst of a major transformation into a preeminent contract research, development and manufacturing organization for complex science. This transformation is both timely and strategic, as we seek to optimize all areas of our business to uniquely serve the growing market demand for pharmaceutical outsourcing. We have found early success in this transformation, experiencing contract revenue compounded annual growth of 20 percent since 2010. With an expectation of further growth, we have set our sights on achieving $1 billion in annual revenue by 2018. Outsourcing in the drug development industry is grow-ing quickly; global expansion of this industry is seen at roughly 10 percent per year through 2019, according to market research. Large pharmaceutical companies have pared down to their core competencies, while venture-backed drug development companies are operating via virtual or near-virtual business models. In both cases, the result is an urgent need for nimble discovery and development partners such as AMRI to provide integrated solutions that are not available in-house.

Leveraging our rich history and proficiency in complex drug discovery, AMRI has positioned itself as the partner of choice for multiple core steps in the development process—from compound screening to product manu-facturing. We offer an integrated set of efficient and innovative services to customers across three business segments: Discovery and Development Services (DDS), Active Pharmaceutical Ingredients (API) Manufacturing and Drug Product Manufacturing (DPM).

This market-focused structure is what makes AMRI a very different business today than it was at the end of 2013, when we were dependent on royalties from Allegra® (fexofenadine) which was facing patent expiry. By contrast, today we have diverse revenue streams from a wide range of services and from a wide base of cus-tomers across the industry. This comes as a direct result of the execution of our strategic vision, a plan that has successfully returned our company to profitability.

For the full year of 2015, on an adjusted basis we achieved profits of $33.0 million or 96 cents per share. Total revenue for the year ended December 31, 2015 was $402.3 million, an increase of 45% compared to total revenue of $276.6 million for the same period in 2014. Total contract revenue for the full year 2015 was $384.7 million, an increase of 53% compared to contract revenue of $250.7 million for 2014. Adjusted contract margins were 26% for the full year 2015, compared to 20% in 2014.*

Let’s take a closer look at the three business units that are providing momentum for future growth.

Discovery and Development Services: A Unique Combination of Service Offerings Drives Value

Our DDS business experienced a dynamic year of expan-sion in 2015. Spearheading this next phase of growth is Christopher Conway who was appointed senior vice president of Discovery and Development Services this past year. Under Chris’ leadership, we officially launched our integrated drug discovery center in Buffalo, New York. Leveraging the expertise and infrastructure of academic and industrial partners, this new site

provides a centralized source for high-throughput screening, in vitro pharmacology and medicinal chemis-try. It is one of the only U.S.-based CRO facilities that has the advantage of biology, pharmacology, high-through-put screening and chemistry all under one roof. This allows for increased efficiencies and lower costs than other models.

In addition to having premier talent within our core competencies of chemistry, biology and pharmacology, we have bolstered our capabilities with state-of-the-art equipment. In June 2015, AMRI entered into an agree-ment with PerkinElmer through which scientists at our integrated drug discovery center can leverage our chemistry and biology expertise alongside PerkinElmer’s informatics technologies and high content screening, cellular imaging and analytical instruments. Experts from PerkinElmer work alongside our scientists, accelerat-ing the knowledge and information our customers and partners need. This partnership clearly strengthens our end-to-end integrated discovery offerings.

In addition, we’ve signed a number of collaboration agreements in 2015 that broaden the technologies that we offer to our DDS customers. Among these is a key partnership with Multispan, enhancing our offerings in G protein-coupled receptor (GPCR) drug discovery, and with Icagen, which gives us an advantage in ion channel and transporter technology.

In 2015, we also completed a strategic acquisition of Whitehouse Laboratories. Whitehouse is a leading provider of testing services that includes chemical and material analysis, method development and validation, and quality control verification services to the pharmaceutical, medical device and personal care industries. Whitehouse is also a recognized leader in container closure integrity and qualification testing. Its services complement our drug-substance analytical capabilities. Early in 2015, through the addition of SSCI in West Lafayette, Indiana, we added expertise in high-demand solid-state chemistry and extensive analytical and drug product testing capabilities that address our customers' expanding regulatory demands. We finished 2015 with $90 million in Discovery and Development Services revenue, up 20 percent from $75 million in 2014.

Active Pharmaceutical Ingredients (API) Manufacturing: A Strong Portfolio

Our API business unit is our largest business segment, having generated more than $200 million in revenue in 2015, up from $146 million in 2014. This division has undergone its own transformation during the past year as AMRI has expanded its API manufacturing capabili-ties and portfolio. As part of this, we recently appointed Dawn Von Rohr as senior vice president of API; she joins us after having led Mallinckrodt Pharmaceutical’s global API business.

In 2015, we completed the acquisition of Gadea Pharmaceutical Group, further advancing our position as a leader in custom and complex API and adding new customer relationships that extend our global reach. Gadea significantly broadens our marketable API portfolio and builds on our expertise in complex API development and manufacturing with its industry-leading capabilities in steroids and hormones. Gadea has large-scale capabilities around steroids, specifically around the backward fermentation of certain steroidal and hormonal intermediates, a true competitive advan-tage. Based in Spain, Gadea expands our footprint in Europe with 400 customers selling into 70 countries.

We begin 2016 with an impressive API manufacturing pipeline that includes 50 innovator compounds in Phase 1 and 2 development and 13 compounds in Phase 3 trials, with 32 drug master files (DMFs) available for customers to reference and 134 commercial products. This strong portfolio of APIs will continue to provide a healthy stream of revenue for the foreseeable future.

Drug Product Manufacturing: Acquisitions Boost Growth

Our Drug Product Manufacturing business continues to expand rapidly as we further establish our position as the preeminent supplier of custom and complex drug development services and products. We now have four facilities, which allow us to accomplish everything in sterile drug product development and manufacturing from pre-formulation, formulation, clinical batch manufacture and process engineering to full-scale commercial production. We closed 2015 with $90 million in Drug Product Manufacturing revenues, up significantly from $30 million in 2014.

Enhancing operations and new acquisitions were key to our success for Drug Product in 2015. Our Burlington, Mass. facility, focused on the development and small scale production of sterile injectables, had its first prod-uct approved by FDA, helping the Drug Product business and became profitable for the first time in 2015.

On the acquisition front, we acquired our Glasgow, UK operation, which focuses on sterile drug product de-velopment services, and the Gadea acquisition further supports expansion of our Drug Product Manufactur-ing business. Gadea augments our sterile offerings with new dosage forms, such as ophthalmics and parenteral suspensions, and provides additional prefilled syringe and lyophilization capabilities. Together with our com-mercial scale manufacturing facility in Albuquerque, New Mexico, we currently manufacture 18 commercial products for our customers.

Our pipeline of late-stage development programs pres-ents significant growth opportunity. There are 67 sterile products in early stage development and 19 products in Phase 3 development. Assuming regulatory success for these late-stage programs, we see a powerful engine for future growth in this area. We are especially excited about our 21 ongoing generic programs, about a dozen of which are co-development alliances. Under these alliances, we have the opportunity to capture revenue over the lifetime of the generic product, through development, commercial supply and, if commercial-ized, through royalty revenue. These co-development alliances are expected to create an additional revenue stream and could generate significant royalties in future years.

Ideally Positioned for Sustainable Profitability

Reflecting on what we’ve achieved in the last two years, I can confidently assert that AMRI is in an exceptionally strong position to deliver value to you, our shareholder. We enter our 25th year equipped to fulfill the emerging needs for pharmaceutical drug discovery, development and manufacturing—and particularly for complex drug development and manufacturing.

Our diversified business allows us to maintain our strong relationships with existing customers and become a trusted partner to new companies, both big and small, as they seek to shepherd their drug development through the required steps to bring a new product to market.

AMRI is well-positioned to achieve annual revenues of $1 billion in 2018 through a combination of organic growth and further strategic acquisitions.

The market has shifted and will continue to shift in favor of pharmaceutical outsourcing, and we’re poised to fulfill these emerging opportunities. We have a strong foun-dation for future growth, a focused business strategy, and incredibly passionate and talented people working towards our vision. Together, we will maximize the value of our acquisitions, drive organic and inorganic growth, and deliver the quality, reliability and innovation that our customers demand. Based on the traction we have established, we are confident we will reach our goals.

On behalf of the entire board of directors, and our global employees, I thank you for your interest in and support of AMRI.

Sincerely,

William S. MarthPresident and Chief Executive Officer

*To supplement our financial results prepared in accordance with U.S. GAAP, certain financial information presented above represents non-GAAP measures adjusted to exclude certain costs, expenses, gains and losses which management believes are outside of our core operational results. Please reference the back of this Annual Report for the reconciliation of excluded items.

HISTORICAL KEY MILESTONESWe have been working with the Life Sciences industry to improve patient outcomes and the quality of life for more than two decades.

2015 KEY COLLABORATIONSWe have been collaborating with partners in the Life Sciences industry to work together to achieve a defined and common business purpose.

1991 Albany Molecular Research, Inc. ("AMRI") is incorporated

1995 Licensed Allegra patent application & resulting patents to what is now Sanofi Aventis

2003 Completed purchase of Organichem Corp.; later renamed AMRI Rensselaer

2013 Burlington, Mass. site receives approval to handle Schedule 2 and 2N controlled substances

2014 Acquisition of Cedarburg Pharmaceuticals, Inc.

Acquisition of Oso Biopharmaceuticals Manufacturing

2015 Acquired SSCI/Glasgow businesses from Aptuit

Established AMRI Buffalo

Acquired Gadea Pharmaceutical Group/Crystal Pharma

Acquired Whitehouse Laboratories

Burlington, Mass. site receives first product approval

AMRI and HarkerBIO Ink Collaborative Agreement in Buffalo, N.Y.

AMRI and PerkinElmer Announce Drug Discovery Collaboration as part of the Buffalo Medical Innovation and Commercialization Hub

AMRI Announces Agreement with Saneca Pharmaceuticals, a.s. for Portfolio of Opium-Derived Active Pharmaceutical Ingredients

AMRI and Multispan Ink Collaboration Agreement

Industry-Driven Strengths & Services Align with Tomorrow’s Market

• Growth built on a solid foundation of scientific expertise, core capabilities, broad technologies and innovation.

• Seamless continuity from early discovery through to commercial supply

• A focus on providing the most comprehensive and innovative breadth of capabilities across the drug development continuum.

• Leading-edge platforms, technologies and scientific expertise, with enhanced Biology Services, all in one hub.

• Leading research, cGMP development and manufacture of complex APIs, with a global manufacturing footprint and recent significant expansion of API capabilities.

• World-class drug product manufacturing facilities; continuing to expand our range of dosage forms.

AMRI GLOBAL SERVICES PIPELINE*

DRUG PRODUCT PIPELINE

API PIPELINE

67 19 21 18

Phase I & II Phase III DMFs Commercial

50 13 32 134

Phase I & II Phase III DMFs Commercial

“This strong portfolio of APIs will continue to provide a healthy stream of revenue for the foreseeable future.”

“Our pipeline of late-stage development programs presents significant growth opportunity.”

* As of December 31, 2015

CONTRACT DRUG DISCOVERY

AMRI provides a comprehensive suite of drug discovery solutions. With more than 25 years of innovation in drug discovery and manufacturing, we combine broad target class coverage and access to state-of-the-art equipment to offer you a complete drug discovery experience.

SOLID STATE CHEMISTRY AND ANALYTICAL SERVICES

AMRI provides services that span the development continuum for both small and large molecules, from candidate selection in pre-clinical development through market approval of API and drug product, providing robust support for various aspects of pharmaceutical development and manufacturing. SSCI also provides extensive material science knowledge and technology that expands AMRI’s capabilities in analytical testing to include peptides, proteins and oligonucleotides. Critical support for all aspects of pharmaceutical development and manufacturing.

A TRUE, END-TO-END DRUG PRODUCT OFFERING

Our Drug Product business supports development through commercial-scale production of complex liquid-filled and lyophilized parenterals, sterile suspensions and ophthalmic formulations. As part of this services platform, we provide integrated development, formulation, and commercial parenteral solutions, which include pre-formulation, formulation and process development; cGMP injectable formulation development and clinical drug product; and late phase and commercial parenteral manufacturing.

CRYSTAL PHARMA: STRONGER TOGETHER

The acquisition of Gadea Pharmaceutical Group strategically expanded our API portfolio through Crystal Pharma, positioning AMRI as a significant source of specialty and generic API. This mutually beneficial transaction presented an exciting opportunity for our two companies that has added a strong portfolio of complex API that has augmented AMRI’s existing capabilities and services, and new customer relationships that will extend our global reach.

TESTING AND COMPREHENSIVE ANALYTICAL SERVICES

AMRI is a leader in testing and offers comprehensive analytical services - providing support for manufacturing from development to market. From analytical chemistry and material qualification to packaging optimization, AMRI is the testing partner for the world's leading pharmaceutical, biotechnology, medical device, life sciences and consumer products organizations.

Corporate HeadquartersAMRI26 Corporate Circle, P.O. Box 15098Albany, NY 12212-5098T 518-512-2000 F 518-512-2020www.amriglobal.com

Investor InformationAlbany Molecular Research, Inc. common stock is traded on the NASDAQ Global Market under the ticker symbol AMRI.

Inquiries about the transfer or exchange of shares, lost stock certificates or changes of address should be directed to the company’s Registrar and Transfer Agent: First Class/Registered/Certified Mail: Computershare Investor Services P.O. BOX 30170 College Station, TX 77842-3170

Courier Services:Computershare Investor Services211 Quality Circle, Suite 210College Station, TX 77845

Shareholder Services Number(s): 800 368 5948Investor Centre™ portal: www.computershare.com/investor

A copy of the company’s annual report on Form 10-K as filed with the Securities and Exchange Commission has been included with this annual report, and constitutes an integral part of this annual report and is incorporated herein by reference. Copies of any exhibits filed with the company’s annual report on Form 10-K may be obtained by contacting the Investor Relations department at the company at 518-512-2261, or investorinfo@amriglobal.com.

Independent AuditorsKPMG LLP515 BroadwayAlbany, NY 12207www.kpmg.com

CounselGoodwin Procter LLPBoston, MA 02109www.goodwinprocter.com

Management Team

William S. MarthPresident & Chief Executive Officer

Milton BoyerSenior Vice President, Drug Product Manufacturing

Christopher ConwaySenior Vice President, Discovery & Development

Steven R. Hagen, Ph.D.Senior Vice President, Manufacturing, Pharmaceuticals & Operations

Lori M. HendersonSenior Vice President, General Counsel, Head of Business Development

Felicia I. LadinSenior Vice President, Chief Financial Officer & Treasurer

Brian D. RussellSenior Vice President, Human Resources

George SvokosChief Operating Officer

Dawn Von RohrSenior Vice President, API Manufacturing

Jimmy Wang, Ph.D.Senior Vice President, Chief Information Officer

CORPORATEGOVERNANCE

Board of Directors

Thomas E. D’Ambra, Ph.D.Chairman of the BoardAlbany Molecular Research, Inc.

David H. DemingManaging Partner, TAG Healthcare Advisors

Veronica G. H. Jordan, Ph.D.Former President, Chief Executive OfficerMedelle Corporation

Anthony J. MaddalunaExecutive Vice President, Pfizer Inc.President, Pfizer Global Supply

William S. MarthPresident & Chief Executive OfficerAlbany Molecular Research, Inc.

Kevin O’ConnorFormer Chief Executive OfficerFirst Light (formally Tech Valley Communications, Inc.)

Arthur J. RothFormer CommissionerNew York State Department of Taxation & Finance

Una S. Ryan, O.B.E., Ph.D. Executive, Entrepreneur, Investor

Audit CommitteeArthur J. Roth, ChairDavid H. DemingVeronica G.H. Jordan, Ph.D.

Compensation CommitteeVeronica G.H. Jordan, Ph.D., ChairDavid H. Deming Kevin O’ConnorUna S. Ryan, O.B.E., Ph.D.

Nominating & Corporate Governance CommitteeKevin O’Connor, ChairArthur J. RothUna S. Ryan, O.B.E., Ph.D.

For more information about AMRI,please visit our website atwww.amriglobal.com.

Corporate Headquarters26 Corporate CircleAlbany New York 12203, USA

STRONGER PARTNERSHIPS.DEEPER COLLABORATION.BETTER DECISIONS.