The company expands its inhalation capabilities with GBP 45 million acquisition of Sanofi CMO business located in UK.
The acquisition of Sanofi’s manufacturing centre and business located in Holmes Chapel, UK, provides Recipharm with a solid platform to take further advantage of the growing respiratory drug market, it reports. It also adds additional inhalation commercial drug product manufacturing capabilities, complementing services already offered by Recipharm’s inhalation development facility in the US. And the expected business revenue growth rate of 7-11% per year from 2019 (company estimate, based on due diligence).
“Holmes Chapel brings Recipharm an ideal opportunity to accelerate its offering to customers with access to novel of respiratory products. As an already successful CMO with several clients, we look forward to introducing new contracts to Holmes Chapel by utilising our growing franchise in development services. Treatments for asthma and chronic obstructive pulmonary disease (COPD) are growing at a fast rate and we see many opportunities. The experienced management team and staff have already successfully attracted new customers and we look forward to building on this from the well invested facility,” says Thomas Eldered, CEO of Recipharm.
Recipharm will acquire the assets and business for a consideration of GBP 45 million (SEK 527 million1). Supplementary considerations may be made in 2020 and 2021, subject to superior development of the business. Transaction is expected to be accretive to EBITDA-margin and EPS already from Q1 2019