Recipharm acquires Portuguese CDMO

Swedish pharmaceutical contract development and manufacturing organization, Recipharm AB has acquired Lisbon, Portugal-based based CDMO Lusomedicameta Sociedade Técnica Farmacêutica in a 1 billion Swedish kronor ($134.3 million) transaction.

Lusomedicamenta, together with its subsidiary, had 12 month revenues and adjusted EBITDA for non-recurring items to end September 2014 of 50.7million euros ($62.9 million) and 12.7 million euros, respectively, representing an adjusted margin of 25%. The combined entity will enhance Recipharm’s scale and profitability. Based on LTM September 2014, the combined revenue and EBITDA (pre-Corvette) is 2,725 million kronor and 446 million kronor, respectively.

Thomas Eldered, chief executive of Recipharm, commented:”The acquisition of Lusomedicamenta represents an excellent addition to the Recipharm Group and is perfectly in line with our strategic plan to access new markets, establish new customer relationships and consolidate the industry to become a major CDMO. The new customer base combined with significant IP backed sales in Portugal provides us with many new exciting opportunities. I am particularly pleased that we have been able to reach agreement with the former owners of Lusomedicamenta who were working in the company to stay and take the company on to the next level together with us.”