Acquisition extends its offering into preclinical development services
Recipharm has completeted the acquisition of OnTarget Chemistry, based in Uppsala, Sweden, for SEK15.1m. OnTarget Chemistry is a CRO company that specialises in medicinal chemistry, offering synthesis and analytical services including rare and demanding specialities. It had a turnover in 2014 of close to SEK29m, and sales in 2015 show more than 60% of total revenue outside Sweden with substantial sales in Germany, Japan and the UK.
The deal will significantly broaden Recipharm's pharmaceutical development capabilities: the inclusion of preclinical chemistry services will give it the possibility to engage much earlier in high potential customer projects. Furthermore, OnTarget Chemistry’s synthesis capabilities will be of great value for the GMP development of APIs in Recipharm’s Italian subsidiary, Edmond Pharma.
'With the acquisition of OnTarget Chemistry we will be able serve both existing and new customers with high quality development services,' said Carl-Johan Spak, EVP of Development & Technology. 'The acquisition is of strategic importance for Recipharm as it will together with the existing development organisation fuel manufacturing sales in the long term.'
Fredrik Lehmann, CEO of OnTarget Chemistry, added: 'The fit with Recipharm’s development organisation is very good for us. We believe we can add preclinical competence and capabilities to Recipharm and we also look forward to contributing with a broad range of both local and international customers. This will be a great opportunity for us to continue to grow our business within Recipharm.'