Stockholm, Sweden – Recipharm AB has agreed to acquire Italy’s Mitim Srl, a family owned pharmaceutical contract manufacturing company specializing in the filling of injectable beta lactam products. The transaction was expected to close February 24.
The deal, valued at EUR 68 million ($74.7 million), gives Recipharm added capacity for sales of injectable beta lactams in both the U.S. and European markets, according to the company.
In addition to beta-lattamic antibiotics, including injectable sterile powder, tablets, capsules, and oral suspensions, Mitim specializes in production of injectable sterile solutions, oral solids and liquids, and semi-solid gels and creams.
“This acquisition … represents an important step in our consolidation of the (contract manufacturing) industry,” Thomas Eldered, Recipharm AB CEO, said. “The transaction also cements our leading position in beta lactam production and provides Recipharm not only with additional scale but also opportunities to realize commercial and operational synergies as we combine it with our existing Italian business.”
Mitim lists its services as: Development of new formulations; development and validation of analytic and microbiological methods; stability studies in accordance with the ICH; editing of dossiers and technical documentation in CTD format; and process validations.
Located near Recipharm’s operations in Northern Italy, Mitim’s production plant in Brescia includes 65,000 square feet of production space, 54,000 sq ft for storage, and 32,000 sq ft for R&D, with an additional 65,000 sq ft for possible expansion, according to the Mitim website.
The manufacturing site maintains five production lines and in March 2015 the company, which employs about 250 workers, completed investment in a new production line for injectable beta lactams.
The acquisition consolidates Recipharm’s position as a contract manufacturer and adds new technology with FDA inspected facilities for filling sterile beta lactams. Sales to the U.S., which represents the largest market for the products, have “significantly increased in recent years through the expansion of partnerships with existing customers who are making new product registrations in the territory,” according to Recipharm, which added that there is limited competition for the technology in Europe.
The transaction also complements Recipharm’s existing Italian units with commercial and other synergies anticipated through the integration of certain operations that are geographically close, according to the company, which did not indicate the scope of expected integration measures.
Recipharm, headquartered in Jordbro, Sweden, offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material including API, and pharmaceutical product development.
The company manufactures several hundred products to customers ranging from Big Pharma to smaller R&D companies. Recipharm maintains development and manufacturing facilities in Sweden, France, the U.K., Germany, Spain, Italy, Portugal and Israel. It employs some 2,500 workers.
(Sources: Recipharm, Mitim, and Business Wire)