Recipharm reports 55% sales growth; North America next step in M&A strategy
For the third quarter, the contract development and manufacturing organisation announced total sales of SEK 802m ($93m), up 55% from the same period 2014.
“The growth was driven by acquisitions,” said CEO Thomas Eldered, who added continued M&A activity, such as an agreement last month to buy Indian CMO Nitin Lifesciences, are “a significant step forward in our strategy for global leadership in our industry.”
Between 2007 and 2014, the firm has acquired six smaller firms and this year the firm added - along with Nitin – Swedish CRO OnTarget Chemistry.
These deals have boosted Recipharm’s manufacturing services to include freeze dried ampoules, injectable hormones, effervescent tablets, ophthalmics, niche APIs, preclinical chemistry, and coated pellets.
Acquisitions have also added around 65 new customers to the mix, while Recipharm’s geographic footprint has expanded across Europe, and now – through Nitin - spread to India.
But one area the firm has not yet ventured is North America, but during a call to discuss results this morning, Eldered said this would be the fifth step in the firm’s growth strategy to build a global CDMO.
“Looking at our growth strategy, we have built a broad network with critical mass across Europe. We did our IPO last year gaining access to capital markets to enhance M&A fire. We are increasing the breadth of offering in high margin Steriles and D&T. We are growing and establishing our presence, particularly with Nitin, in emerging markets,” he said, “and we still have a component in our strategy to establish a foothold in the North American market.”
He added there would be further “M&A activities with bolt-on acquisitions in Europe and expansion into new geographies,” but failed to give a timeline.
