Recipharm To Acquire Indian Sterile Mfg CMO

Recipharm AB, a contract development and manufacturing organization based in Jorboro, Sweden, has agreed to acquire a majority stake in Nitin Lifesciences Limited, an Indian sterile injectables contract manufacturing organization, currently owned by the Sobti family.

Recipharm will acquire 74 % of the shares for an estimated purchase consideration of INR 6,712 million ($105 million) on a cash and debt-free basis. The combined entity will have enhanced scale, reach, and profitability with current pro-forma revenue of SEK 3.5 billion ($422 million). The deal is expected to close in the first quarter 2016 pending approval by the Indian Foreign Investment Promotion Board.

Headquartered at Karnal in Northern India, Nitin has three facilities for small-volume parenterals located at Karnal (Haryana) and at Paonta Sahib (Himachal Pradesh). The newest facility in Paonta Sahib became operational in 2014. The company specializes in manufacturing liquid ampuls, liquid vials, sterile dry powder (beta lactam and non beta lactam), multidose eye/ear drops, and lyophilized vials covering more than 200 formulations across various therapeutic areas including antibiotics, anti-malarial, NSAIDs, anti-inflammatory, and local anesthetics. The company is privately owned and employs approximately 500 employees at its three manufacturing facilities.

Source: Recipharm

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