06/13/2018 | Press release | Distributed by Public on 06/13/2018 09:34
The acquisition of Sanofi's manufacturing centre and business located in Holmes Chapel provides Recipharm with a solid platform to take further advantage of the growing respiratory drug market. It also adds additional inhalation commercial drug product manufacturing capabilities, complementing services already offered by Recipharm's inhalation development facility in the US.
Thomas Eldered, CEO of Recipharm, commented: 'Holmes Chapel brings Recipharm an ideal opportunity to accelerate its offering to customers with access to novel of respiratory products. As an already successful CMO with several clients, we look forward to introducing new contracts to Holmes Chapel by utilising our growing franchise in development services. Treatments for asthma and chronic obstructive pulmonary disease (COPD) are growing at a fast rate and we see many opportunities. The experienced management team and staff have already successfully attracted new customers and we look forward to building on this from the well invested facility'.
- Attractive end market - the respiratory drug market enjoys a higher growth rate and profitability for CMOs in relation to the general CMO market
- Market growth is primarily driven by increased incidence of asthma and COPD
- Complex production process of inhalators implies significant barriers to entry
- Adds new capabilities to group in attractive technology area
- Provides differentiation from competitors
- Complements existing development capabilities
- Top tier client base including Big Pharma
- Manufactures several recently launched products in growth phase
- High potential to expand relationships
- Well invested facility with strong management and staff
- Geographically close to Recipharm's other UK facility providing potential operational synergies.
- Accretive to growth, margin and EPS
- Strong cash flows
About Sanofi Holmes Chapel
The Holmes Chapel manufacturing facility is located close to Manchester and is one of the leading sites of its type in Europe providing CMO manufacturing services. Several clients are serviced from the facility and a number of products, some of which that are still in their launch phase, are supplied. One such client is Vectura Group plc, for whom flutiform® is manufactured. As part of the transaction Sanofi have also entered into a long-term supply agreement for the products currently manufactured at the facility.
The prime technologies of Holmes Chapel are metered dose inhalers and nasal sprays. The facility houses development areas for dry powder inhalation technologies.
The site covers 125,000 m2 and is home to a team of more than 450 specialist employees.
Additional financial information
1/ Exchange rate SEK/GBP 11.71
2/ Proforma EBITDA LTM March 2018 adjusted for non-recurring items
3/ Company estimate, based on due diligence
Recipharm invites investors, analysts and media to a web conference (in English) on June 14 at 10:00 am CET, where CEO Thomas Eldered will comment on the acquisition as well as answer questions.
To participate in the web conference, please use the below link:
Questions may be submitted by dialing below telephone numbers or by typing them in the Q&A box during the conference. If you don't wish to ask questions by telephone you only need to participate through the link above.
From Sweden: +46 8 566 426 51
From the UK: +44 333 300 08 04
From the USA: +1 631 913 14 22
Pin code for participants:
This information is information that Recipharm AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 13 June 2018, at 17:31 CET.About Recipharm
For more information on Recipharm and our services, please visit www.recipharm.com
Recipharm has retained Crédit Agricole Corporate & Investment Bank, Hurst Corporate Finance, Rambaud - Le Goater and Turner Parkinson LLP as advisors for this transaction.