Recipharm AB has entered into an agreement to acquire a majority stake in Nitin Lifesciences Ltd., an Indian sterile injectables CMO, currently owned by the Sobti family. Recipharm will acquire 74% of the shares for an estimated purchase consideration of $105.4 million, and will join forces with the founding and managing owners to further grow the current business.
 
The combined companies will have enhanced scale, reach and profitability with current pro-forma revenue of $423 million (+13 %). Recipharm bolsters its presence in high growth developing territories, establishing its emerging market strategy, and gains direct entry into the rapidly expanding Indian market. The partnership also expands Recipharm’s global position in sterile injectables including lyophilization.
 
Thomas Eldered, chief executive officer of Recipharm said, “I am delighted to be entering into this partnership with the current owners who have successfully expanded and grown the company to what it is today. It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring. The Indian market is particularly attractive showing high growth levels and the transaction firmly establishes Recipharm’s emerging market strategy. Nitin can also be used as a platform for entry into other regions. We are fortunate to have found such a high quality business and management and we are looking forward to utilizing this opportunity to support our current customers’ strategy in the Indian domestic market.”
 
Dr. Chetan Sobti, chief executive officer of Nitin said, “I am very much looking forward to this partnership with Recipharm. We have grown tremendously in the domestic market, attracting new multinational customers by offering high quality and service. We believe that with the support and network of Recipharm, we shall be able to further expand and continue to grow both domestically and outside the Indian market.”