Recipharm to Acquire Consort Medical for $649 Million
If successful, the acquisition will boost Recipharm’s global position in the contract development and manufacturing organization (CDMO) market.
Recipharm announced on Nov. 18, 2019 that it reached a deal with Consort Medical, a drug delivery and device company headquartered in the United Kingdom, to acquire the company for £505 million (US$649 million). If the acquisition is successful, it will boost Recipharm’s global position in the contract development and manufacturing organization (CDMO) market. The company estimates that the acquisition will rank it in the top five global CDMOs.
According to a Nov. 18, 2019 Recipharm press release, Recipharm will gain technological intellectual property along with access to new customers and Consort’s product portfolio from both of the company’s divisions, Bespak and Aesica. The acquisition is also expected to build up Recipharm’s scale and profitability with an annual pro forma revenue of SEK 10,847 million (US$1.1 billion) and pro forma earnings before interest, tax, depreciation, and amortization of SEK 1,793 million (US$186 million).
“I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary,” said Thomas Eldered, CEO of Recipharm, in the press release. “In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm’s broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing whilst providing access to a new customer base.”
“Consort’s strategy has been to focus on expanding its businesses into new markets and geographic territories, and on developing our combined drug/device offering. Recipharm’s capabilities and footprint in drug manufacturing will enhance both our Bespak and Aesica businesses. We believe that customers of both businesses will value the offering and enhanced scale of the combined business,” added Jonathan Glenn, CEO, Consort, in the press release.
Source: Recipharm
