Recipharm Completes $120-Million Kemwell Indian Biz Acquisition
Recipharm, a contract development and manufacturing organization (CDMO) based in Jordbro, Sweden, has completed its previously announced acquisition of Kemwell’s pharmaceutical business, Recipharm Pharmaservices Private Ltd, located in Bangalore, India, for Indian rupee 7.98 billion ($120 million).
This acquisition is part of a two-fold transaction Recipharm announced in April 2016 to acquire Kemwell’s pharmaceutical contract development and manufacturing businesses in the US and Sweden in one transaction and Kemwell’s India operations in a second transaction. Recipharm acquired Kemwell’s US and Swedish operations for $160 million, which closed in the second quarter of 2016, and the company received approval from the Indian Foreign Investment Promotion Board in late December 2016 for the acquisition of Recipharm Pharmaservices Private Ltd.
With this acquisition, Recipharm expands its manufacturing capabilities and extends its presence in emerging markets. As part of the transaction Recipharm also has a right of first negotiation to acquire Kemwell’s Indian biopharmaceuticals business, which is not included in this acquisition and will continue to be retained by the sellers.
Recipharm Pharmaservices Private Ltd employs approximately1,200 people. It comprises both development services and commercial manufacturing of solid, semi-solid, liquid, and topical products. The solid dosage plant was commissioned in 2008 and has approvals from the US Food and Drug Administration and European Union, among other regulatory bodies. The oral liquids production plant was commissioned in 2011 and is specialized in automated high-through-put, large-volume manufacturing, mainly for the Indian subcontinent. The development business includes formulation development, small scale manufacturing for clinical trials, and an analytical services business.