Swedish firm acquires the remaining shares of sterile injectable CMO Nitin Lifesciences.
Looking to strengthen its global position in sterile injectables, Sweden-based contract development and manufacturing organization (CDMO) Recipharm has acquired the remaining shares of Nitin Lifesciences it did not already own.
Nitin is an Indian sterile injectables contract manufacturing organization (CMO). Recipharm purchased a 74% share of the company in 2016 for approximately $102 million. The remaining 26% was obtained for $42 million in cash, $9 million of which will be paid in newly issued Recipharm shares. The cash has already been paid, and the shares will be awarded later in 2018. With completion of the purchase, Nitin Lifesciences has become a wholly owned subsidiary of Recipharm.
Nitin is headquartered in Karnal in the north of India. It has three production facilities in the country focused on the manufacture of small-volume parenterals, including liquid ampules, liquid vials, sterile dry powder (beta lactam and non-beta lactam) products, multidose eye/ear drops and lyophilized vials covering more than 200 formulations across various therapeutic areas.
“I have been particularly pleased with the way the performance in Nitin Lifesciences has developed since it became part of the Recipharm Group,” said Thomas Eldered, CEO of Recipharm. “Both sales and margins have grown in the business despite the recent macro-economic volatility in India and we foresee this favorable development to continue. The transaction will allow us to combine and better exploit operational synergies with our other Indian business. The equity investment will align interests of the Sobti family. As such, I have great pleasure in announcing that current chief executives and members of the founding family Dr Chetan Sobti and Mr Nitin Sobti shall not only continue to spearhead the current business but also in addition take on the responsibility to develop and grow Recipharm’s total business in the Indian and emerging markets.”
