Sales and profit increase in first half for Recipharm

Will explore possibilities for geographic expansion going forward

Swedish CDMO Recipharm reported a sales increase of 46% in the first half of 2015 to SEK1.74bn (€185m), up from SEK1.19bn in 2014. EBITDA rose by 56% to SEK314m, while profit after tax was SEK189m (2014: SEK103m).

Chief Executive Thomas Eldered said sales overall had developed in line with forecasts and acquisitions from 2014 were developing well and contributing to a total growth in local currencies of 40.1%.

The acquisition of On Target Chemistry in June will allow the company to support customers in discovery and increase its geographical reach for development services, he said.

Capacity expansion projects and the company's ongoing lyophilisation expansion in Germany progressed according to plan with completion expected by the end of 2016. The company also plans to expand its fill and finish capacity of lyophilised products following strong customer demand.

'These projects, together with several others, will enable us to better support our customers in injectable technologies, an area which is developing very well for us,' said Eldered.

The company will take steps to address business segments that showed slowing demand, such as Solids and Others, during the next financial quarters.

Looking forward and excluding acquisitions, Eldered expects that in the second half of the year overall demand for Recipharm's services will stay on the same level year-on-year, while the weak performance in Solids and Other 'will impact profit somewhat'. He said the company is benefitting from recent acquisitions and is 'very well placed to explore the opportunities we see in the market, including geographic expansion'.

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