Recipharm Gets OK for Kemwell Indian Biz AcquisitionBy
Recipharm, a contract development and manufacturing organization (CDMO) based in Jordbro, Sweden, has received approval from the Indian Foreign Investment Promotion Board for its proposed acquisition of Kemwell’s Indian operations.
The transaction is expected to close at the beginning of 2017 and comprises the acquisition of Kemwell’s pharmaceutical manufacturing and development operations located in Bengaluru, known as Recipharm Pharmaservices Private Ltd. Recipharm is acquiring the India operations for $120 million. This agreement includes a right of first negotiation to acquire Kemwell’s Indian biopharma business, which is not included in the transaction and will continue to be retained by the seller.
Founded by Subhash Bagaria, the Kemwell Indian business is expected to employ around 1,400 people at closing of the acquisition, and comprises both development services as well as commercial manufacturing of solid, semi-solid, liquid, and topical dose products. The solid dosage plant was commissioned in 2008 and has approvals from US and European Union regulatory authorities. The oral liquids production plant was commissioned in 2011 and is specialized in automated high-throughput large-volume manufacturing, mainly for the Indian subcontinent. The development business is a growing business that includes formulation development, small-scale manufacturing for clinical trials, and a large analytical services business.
This acquisition is part of two-fold transaction Recipharm announced in April 2016 to acquire Kemwell’s pharmaceutical CDMO 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.
The US development business is located in Research Triangle Park, North Carolina and employs around 50 people. Services include development of inhalation, liquid, semi-solid, solid, and parenteral products with emphasis on early formulation work as well as development of analytical methods and testing. The business commissioned a GMP suite to expand manufacturing of clinical trial material. The services are provided either on a stand-alone basis or as a more comprehensive pharmaceutical product development program.
The Swedish business is located in Uppsala and employs around 210 people. It consists of two production units, including a fully integrated primary and secondary manufacturing facility dedicated to a limited number of products, based on the same active pharmaceutical ingredients (APIs) and supplied essentially to one Big Pharma customer. There is also a small general pharmaceutical manufacturing unit. Manufacturing services offered include APIs, solids, and semi-solid formulations. More than 95% of the Swedish production is exported to over 60 countries, including the US and Japan.