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Recipharm Completes Strategic Acquisition in India

Recipharm AB announces that it has now concluded the acquisition of Kemwell’s pharmaceutical businesses located in Bengaluru, India.


  • Expands position in emerging markets significantly, taking sales in these markets to more than SEK 800 million [1], dominated by sales directly to the fast-growing pharma market in India.
  • Major extension of Recipharm’s capabilities in India:
    • Provides access to significantly increased development operation both in scale and breadth of capabilities.
    • Already working with customers with strong US ANDA [2] project pipeline.
    • Adds US FDA and EU approved highly efficient manufacturing options.
    • Expands manufacturing capabilities, complementary technology to Nitin Lifesciences.
  • Further strengthens Recipharm’s synergistic business model by aligning Indian development and technology operations with the combined Company’s manufacturing capabilities in India and Europe. In addition, there are potential commercial synergies from enhanced customer offering and cross selling.

India transaction

  • Pro-forma net sales for the businesses for the calendar year 2016 amounted to INR 2 263 million, an increase of 5% in spite of fourth quarter sales being temporarily negatively affected by India’s demonetisation scheme.
  • The acquisition price for the businesses in India amounts to INR 7 980 million (SEK 1 058 million [3]) on a cash and debt free basis.
  • As part of the transaction Recipharm also has 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 sellers.

Thomas Eldered, CEO of Recipharm AB said “I am pleased we have now finally completed this important acquisition. We are now in a position to offer our customers access to cost effective development and manufacturing capabilities able to serve international markets including the US. These acquisitions are already showing great promise and I am pleased the current Managing Director, Anurag Bagaria, and VP Corporate Development, Karan Bagaria, will continue in their current positions going forward.”

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