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CDMO Recipharm Signs Manufacturing Agreement with Roche

By Recipharm | September 20, 2017

Recipharm signs long-term manufacturing agreement with major new customer and acquires facility in Spain.

Recipharm AB has entered into collaboration with Roche and signed a long-term manufacturing agreement whereby Recipharm will manufacture a range of solid dose products.

Recipharm will also acquire a manufacturing facility currently employing approximately 200 people located in Leganés, Spain, from Roche. The modern, well-equipped factory, located close to Madrid, currently produces solid dose products and is licensed to supply products globally to more than 95 countries.

Highlights include:

  • Long-term manufacturing agreement will add annual sales of approximately EUR 35 million corresponding to more than 6% of current Group sales and EBITDA-margin well in line with the Group’s overall target.
  • Adds a new important relationship with Roche.
  • Offers opportunity for collaboration with Recipharm’s facility in Parets, outside Barcelona and optimisation opportunities with Recipharm’s current solids manufacturing network.

“We are continuing to gain momentum in the CDMO market through our various profitable growth initiatives,” said Thomas Eldered, CEO Recipharm AB. “I am therefore delighted to announce this long-term agreement with Roche. It has become clear during our interactions with Roche that we are closely aligned in our ways of doing business, and we look forward to developing this relationship further by providing high-quality, reliable supplies from Leganés in future. In addition, we see a highly interesting business development opportunity to add new customers.”

The acquisition of the manufacturing facility and the performance of the manufacturing agreement will be organized in a 100 percent owned subsidiary of Recipharm. Closing of the transaction and commencement of supply under the agreement is anticipated by the year end 2017.

(Source: Recipharm)

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