CDMO Recipharm Acquires CDMO Lusomedicamenta, Gains Access To New Markets
By Cyndi Root
Recipharm has acquired Lusomedicamenta Sociedade Técnica Farmacêutica, a contract development and manufacturing organization (CDMO), based in Lisbon, Portugal. The move, announced in a press release, gives CDMO Recipharm access to Lusomedicamenta’s clients in the development and manufacturing of solid, liquid, and semi-solid dose forms, and sterile ophthalmic products. Lusomedicamenta has two sites near Lisbon and a new dedicated facility for the production of effervescent tablets. Thomas Eldered, CEO of Recipharm, said, “The new customer base combined with significant IP backed sales in Portugal provides us with many new exciting opportunities.”
Recipharm and Lusomedicamenta Agreement
Recipharm’s acquisition of Lusomedicamenta gives it increased scale and profitability, access to the Portuguese market, and new ophthalmics capabilities. The deal also adds to Recipharm’s Intellectual Property (IP) base, as 30 percent of Lusomedicamenta’s business is backed by IP rights. Recipharm has agreed to leave the existing management in place. The two companies have agreed to a transaction valued at EUR 111 million; 67 million was paid in cash and the rest in stock shares. The parties have additional financial structures relating to stock and cash.
About Lusomedicamenta
Lusomedicamenta is a 2004 spinoff of a Janssen-Cilag facility which grew its business primarily in Portugal. It exports to Africa and is developing that market. António Barros Ferreira of Lusomedicamenta said that he hopes Recipharm will continue to grow the African market and will compete on a wider scale worldwide, boosting products from development to regulatory approval. The company employs approximately 340 people and manufactures over 150 products, which it distributes to 45 countries. Lusomedicamenta partners with Boehringer Ingelheim, Gedeon Richter, and OM Pharma (Vifor).
Recipharm Activities
Recipharm recently acquired another CDMO to enhance its scale and profitability. In October 2014, it completed the acquisition of Corvette Pharmaceutical Services Group in a deal that gave it access to new geographical areas, including Italy, and gave it an asset base in each of the five largest European countries. Recipharm stands to benefit from Corvette’s lyophilisation services and the small and medium companies in Italy where Recipharm has little presence. Recipharm stated that Corvette’s IP was a strong benefit and helped in making the deal, just as IP factored in the Lusomedicamenta acquisition.