Deal will make Recipharm one of the strongest CDMOs in Europe
Pharmaceutical contract development and manufacturing organisation Recipharm has acquired fellow CDMO Lisbon-based Lusomedicamenta for SEK1.04bn (€112.3m). A further supplementary payment of SEK12m (€1.3m) will be paid in 2015 subject to the final 2014 performance of Lusomedicamenta.
Combining with Lusomedicamenta will make Recipharm one of strongest CDMOs in Europe. It will gain an added presence in south west Europe, and access to new customers, markets and technologies, such as effervescent solid dose forms and sterile ophthalmic preparations. Lusomedicamenta has strong sales in Portugal and also in export markets including Africa where Recipharm is not present.
The acquisition will also support Recipharm’s ambition to have more sales based on an IP offering. Lusomedicamenta will contribute to Recipharm’s Intellectual Property (IP) backed manufacturing business as 30% of sales relate to IP rights including own marketing authorisations, mainly in the Portuguese market.
The existing management and most of the former owners will continue for the foreseeable future in the company.
'The acquisition of Lusomedicamenta represents an excellent addition to the Recipharm Group and is perfectly in line with our strategic plan to access new markets, establish new customer relationships and consolidate the industry to become a major CDMO,' said Thomas Eldered, CEO of Recipharm. 'The new customer base combined with significant IP backed sales in Portugal provides us with many new exciting opportunities.
'I am particularly pleased that we have been able to reach agreement with the former owners of Lusomedicamenta who were working in the company to stay and take the company on to the next level together with us.'
Lusomedicamenta operates from two sites located close to Lisbon and has invested heavily in the production of effervescent tablets with a new dedicated facility for this purpose. The company is also focused on new products carrying the management of the whole process from product development to the registration dossier.
It employs around 340 people and produces more than 150 formulations, exporting to some 45 countries worldwide.