Swedish CDMO strengthens its presence in high growth developing territories
Swedish contract development and manufacturing organisation Recipharm has completed the acquisition of a majority stake in Nitin Lifesciences, an Indian sterile injectables CMO, currently owned by the Sobti family.
Recipharm has acquired 74% of the shares for SEK824m (US$101m) in cash.
The deal was first announced in October 2015.
Recipharm's CEO Thomas Eldered described the combination of Nitin and Recipharm as 'an important step in the development of both companies'.
Dr Chetan Sobti and Nitin Sobti will continue in their current positions of CEO and COO respectively. The firm will continue to trade as Nitin Lifesciences.
Nitin Lifesciences' founder M M Sobti said the partnership 'represents a real opportunity to take Nitin Lifesciences to a new level'.
'The combination allows both organisations to access a wider customer base and to gain important learning from each other,' he said.
Nitin Lifesciences had 2015 net sales of approximately SEK391m, corresponding to 12% of Recipharm’s 2015 total net sales. The EBITDA margin 2015 was approximately 24%.
The combination of Nitin and Recipharm is an important step in the development of both companies
Recipharm said the deal significantly bolsters its presence in high growth developing territories and firmly establishes the firm’s emerging market strategy. It also provides 'excellent exposure and direct entry into the rapidly expanding Indian market', the firm said.
Recipharm’s global position in sterile injectables including lyophilisation will also be further strengthened.
Headquartered at Karnal in Northern India, Nitin has three facilities producing small volume parenterals in Karnal (Haryana) and Paonta Sahib (Himachal Pradesh). The newest facility in Paonta Sahib started operations in 2014 and provides high technology pharmaceutical manufacturing solutions.
The company specialises in manufacturing liquid ampoules, liquid vials, sterile dry powder (beta lactam and non beta lactam), multidose eye/ear drops and lyophilised vials covering more than 200 formulations across various therapeutic areas including antibiotics, anti-malarial, NSAIDs, anti-inflammatory and local anaesthetics.