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Recipharm creates global CDMO through new acquisitions


Swedish CDMO Recipharm continues to expand. Most recently the company acquired Kemwell’s pharmaceutical CDMO businesses.

In February Recipharm acquired privately owned Italian CDMO Mitim, adding important technology in the filling of injectable beta lactams with sales to the US and European markets. The transaction is valued at an enterprise value of EUR 68 million.

The company’s most recent business move is SEK 1.7 billion strategic acquisitions in the US, Sweden and India. Recipharm has signed two separate agreements to acquire Kemwell’s pharmaceutical CDMO businesses. The first acquisition, comprising US and Swedish operations, is expected to close during Q2 2016, while the second, comprising operations in India, is conditional on governmental approvals and expected to close before year end. The transactions will be financed by already available funds, existing credit facilities, a share issue in kind to the sellers and a proposed share issue of approximately SEK 850 million with preferential rights for existing shareholders. The businesses to be acquired had 2015 preliminary net sales of approximately SEK 745 million, corresponding to 22 per cent of Recipharm’s 2015 total net sales.

“These transactions represent a significant step in both the consolidation of the CDMO industry and the transformation of Recipharm into a global leader. We now have a US footprint which we can use to further penetrate the world’s largest pharmaceutical market and the business in Sweden provides us with several opportunities for synergies. When we receive the approval in India, Recipharm’s customers will have access to very cost effective development and manufacturing capabilities able to serve international markets including the US. I am extremely excited about these acquisitions and the benefits they will bring. The current Managing Director, Anurag Bagaria, and VP Corporate Development, Karan Bagaria, will continue in their current positions post closing and I am very much looking forward to working with them,” said Thomas Eldered, CEO of Recipharm.