Boosts Swedish company's presence in emerging markets and strengthens its global position in sterile injectables
Sweden-based contract development and manufacturing organisation Recipharm will take a majority stake in family-owned Indian sterile injectables CMO, Nitin Lifesciences.
Recipharm will pay around INR6712m (SEK872m; US$102m) in cash for a 74% stake.
The deal takes the Swedish CDMO into high-growth developing territories and firmly establishes its emerging market strategy.
The firm's global position in sterile injectables including lyophilisation will also be further strengthened.
Recipharm says it will join forces with Karnal, North India-based Nitin's founding and managing owners the Sobti family 'to further grow the current business with demanding domestic and multinational customers into a leading position in the Indian sterile CDMO market'.
It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring
Nitin has three modern facilities for small volume parenterals located at Karnal (Haryana) and at Paonta Sahib (Himachal Pradesh), employing around 500 people. The newest facility in Paonta Sahib began operation last year and the business 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.
The transaction is expected to be completed in the first quarter of next year following approval from the Indian Foreign Investment Promotion Board.
Thomas Eldered: It is our stated aim to have a more global footprint
Thomas Eldered, CEO of Recipharm said: 'I am delighted to be entering into this partnership with the current owners who have successfully expanded and grown the company to what it is today.
'It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring.
'The Indian market is particularly attractive showing high growth levels and the transaction firmly establishes Recipharm’s emerging market strategy. Nitin can also be used as a platform for entry into other regions.
'We are fortunate to have found such a high quality business and management and we are looking forward to utilising this opportunity to support our current customers’ strategy in the Indian domestic market.'
Dr Chetan Sobti, CEO of Nitin, added: 'I am very much looking forward to this partnership with Recipharm. We have grown tremendously in the domestic market, attracting new multinational customers by offering high quality and service. We believe that with the support and network of Recipharm, we shall be able to further expand and continue to grow both domestically and outside the Indian market.'
Dr Sobti will remain as CEO with Nitin Sobti as COO, and continue to trade as Nitin Lifesciences.