Recipharm cites sales and earnings hike in acquisition plan

Recipharm cites sales and earnings hike in acquisition plan

Recipharm AB will continue its spending spree of the past few years according to CEO Thomas Eldered, who reiterated the CMO’s plan to grow through takeovers in a results presentation earlier today.

The Swedish contract manufacturing organisation (CMO), which completed its initial public offering (IPO) on the NASDAQOMX in April, saw net sales increase 15% to SEK611m (€89m) and profit after tax climb 40% to SEK74m.

Recipharm said that all of its business segments had reported improvements and described the progress made by its development and technology operations as “particularly good.”

Despite only being a public company for four months, Recipharm has already spoken about its desire to growth through acquisitions several times.

Eldered reiterated this again today citing the firm’s financials.

These good results combined with the company’s strong balance sheet leave us very well positioned to boost this positive growth through profitable acquisitions and outsourcing transactions with major pharmaceutical companies.”

During the period we analyzed and evaluated a number of interesting potential acquisitions that could expand our customer base as well as providing geographical expansion and new technologies. We expect this to result in acquisition activities.”

Even before the IPO Recipharm was no slouch in the growth department. In the past five years, for example, the CDMO has completed multiple acquisitions, numerous facility expansions and carve outs.

However, recent consolidation in the services sector has further increased the pressure on CDMOs to offer both a diverse range of capabilities and global reach.

Recipharm told us earlier this year that: “Our asset base is still focused on Europe although we have customers worldwide. There are still areas of Europe where we believe we can still expand, but we are looking further afield.

An obvious choice is the US but there are also attractive opportunities in emerging markets which we will continue to evaluate.”

Related News

Recipharm to buy Milan, Italy-based Corvette

Recipharm to buy Corvette to drive Italian growth and boost freeze drying clout

Recipharm: 'Client investment gives us competitive edge in CDMO space'

Recipharm: 'Client investment gives us competitive edge in CDMO space'

Recipharm buys in Portiugal

Recipharm eyes Portugal and opthalmics with SEK1bn Lusomedicamenta buy

Recipharm is buying Flamel's manufacturing facilitynear Bordeaux, France

Recipharm adds French plant and drug delivery tech in strategic deal with Flamel

Recipharm's facility in Strängnäs, Sweden could be shuttered following Meda pull out

Meda cuts Recipharm contract: Swedish plant and jobs under threat

Adroit collaboration: Recipharm teams with solid state formulation firm

Adroit collaboration: Recipharm teams with solid state formulation firm

Recipharm teams with Ph I trials firm

Recipharm teams with Ph I trials firm

Recipharm CEO Thomas Eldred

Recipharm says no decision yet on rumoured IPO

Recipharm outlines bluesky acquisition plan post IPO

Public Recipharm plans acquisitions in consolidating CMO sector

Recipharm confirms IPO plan

Recipharm confirms plans to list on OMX

IPO positions Recipharm as mid-tier CMO with plans to grow

IPO positions Recipharm as mid-tier CMO with plans to grow through takeovers

Who's on the move in outsourcing? Lonza and more

Who's on the move in outsourcing? Lonza and more

Related Products

See more related products