Meda, one of Recipharm’s customers, has today advised that it will transfer supply of its mainly Swedish penicillin products and manufacture offshore with other suppliers. The manufacturing contract with Recipharm Strängnäs will be terminated on Dec. 31, 2015. This business accounts for approximately 2% of Recipharm’s current sales. Recipharm currently employs 60 employees in Strängnäs and unfortunately the termination will likely lead to a reduction in that number. Financially, the termination will have a positive impact on Recipharm’s profitability from 2016.
The termination will likely lead to reductions in personnel at the Strängnäs site and potentially even site closure. The total number of employees in Strängnäs were 60 at September 30, 2014 and the total book value of fixed assets at the site was SEK 9.8 million.
The manufacturing contract in Strängnäs remains in force until 31st of December 2015, and there will be no change in the business until then.