Recipharm and Consort Medical have reached an agreement on the terms of a recommended cash offer by Recipharm Holdings Limited, a wholly-owned direct subsidiary of Recipharm, for Consort.
The Board of Consort has confirmed its unanimous intention to recommend a cash offer for an equity value of GBP 505 million (approximately SEK 6,284 million).
Consort is a global drug delivery and device company and integrated contract development and manufacturing organisation. The combination of Recipharm and Consort is highly complementary given that both organisations provide different products and services within the same value chain for a number of customers, states Recipharm in its press release. The enlarged Recipharm Group is set to become a top five global CDMO, able to offer integrated device development and supply combined with commercial scale finished dose manufacturing.
“I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary. In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm’s broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing whilst providing access to a new customer base,” says Thomas Eldered, Chief Executive Officer of Recipharm.
Targeting annual sales of over SEK 8 billion by 2020
Recipharm’s aim is to become a leading global CDMO and it is successfully executing against its ambitious growth strategy, targeting annual sales of over SEK 8 billion by 2020, it states. This target has been set amid consolidation in the fragmented CDMO industry, as pharmaceutical companies seek to reduce their fixed costs by rationalising supply chains and focusing on core R&D and sales capabilities. Consequently, they are turning to trusted partners with the necessary scale and breadth of technologies to support them through the drug development process and the subsequent commercial manufacturing and supply.
Photo of Thomas Eldered: Recipharm