Recipharm Acquires Sanofi’s UK CMO Inhalation-Drug Business
Recipharm, a Jordbro, Sweden-based contract development and manufacturing organization, has agreed to acquire Sanofi’s contract manufacturing business for respiratory products in Holmes Chapel, England for approximately $60 million.
The business provides Recipharm with additional inhalation commercial drug-product manufacturing capabilities. The prime technologies of the Holmes Chapel manufacturing facility are metered-dose inhalers and nasal sprays. The facility houses development areas for dry-powder inhalation technologies. The site covers 125,000-square-meters and houses a team of more than 450 specialist employees.
Several clients are serviced from the Holmes Chapel facility and a number of products are supplied, some of which are still in their launch phase. One such client is Vectura Group, for whom Flutiform (formoterol fumarate/fluticasone propionate), a combined corticosteroid and bronchodilator inhaler, is manufactured. As part of the transaction, Sanofi and Recipharm have also formed a long-term supply agreement for the products currently manufactured at the facility.
“As an already successful CMO with several clients, we look forward to introducing new contracts to Holmes Chapel by utilizing our growing franchise in development services,” said Thomas Eldered, Chief Executive Officer of Recipharm. “Treatments for asthma and chronic obstructive pulmonary disease (COPD) are growing at a fast rate and we see many opportunities.”
Recipharm will acquire the assets and business for a consideration of GBP 45 million ($60 million). Supplementary considerations may be made in 2020 and 2021, subject to further development of the business.