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Sweden's Recipharm has agreed to buy UK-based Consort Medical for £505m ($652m) to become a leading inhalation-device company and top five global CDMO.

 

Recipharm_Boosts_Inhalation_And_Injectables

Swedish pharmaceutical group Recipharm AB announced on 18 November that it struck a deal to buy UK-based contract development and manufacturing organization Consort Medical PLC for £505m ($652m), bolstering Recipharm's annual  revenue to $1.1bn.

Recipharm, which develops and manufactures products for pharmaceutical and smaller research and development companies on a contractual basis, said the deal would raise its scale and profitability, giving it annual sales of 10.8bn Swedish krona ($1.12bn) and pro forma operating profit before depreciation and amortization of 1.79bn Swedish krona ($185m).

Consort will receive £10.10 per share, valuing the share capital at £505m on a fully diluted basis. Consort's shares rose 42% reaching £10.40 on 18 November, following the news of the deal. 

Shore Capital analysts Adam Barker and Tara Raveendransaid said in published reports that the deal makes sense strategically in that it gives Recipharm a footprint where Consort has a strong presence, namely in respiratory devices and injectables. It also provides Recipharm access to the biologics market over the medium-term via Consort's Syrina VapourSoft technology.

Recipharm said Consort's product portfolio and services are “highly complementary” with its capabilities. Consort’s Bespak division manufactures delivery devices for respiratory, nasal and injectables and ocular products and point-of-care diagnostics, and its Aesica unit provides development and manufacturing of finished dose and active pharmaceutical ingredients (APIs).

"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," said Thomas Eldered, Recipharm's CEO. "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."

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