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Recipharm to Continue Mfg. Ops in Höganäs, Sweden

10.19.18

Reverses previous decision to discontinue ops due to demand

Recipharm will continue the manufacturing operations at its facility in Höganäs, Sweden, operations that were set to be discontinued. Recipharm’s operations in Höganäs employ approximately 45 people and are specialized in sachet and stick pack filling, primarily for powders and granules.

In 2017, Recipharm had planned to discontinue the operations in Höganäs and evaluate different options for the facility, including divestment of the site. During this evaluation, new customers have actively approached Recipharm, adding demand for several new products in Höganäs. As a result, Recipharm decided to continue operations in order to progress these new opportunities.

A new customer contract has been established, comprising development and launch of a new product by a large European pharmaceutical company. Recipharm expects that this decision will facilitate the completion of further customer agreements, as well as extend relationships with existing customers.

Thomas Eldered, chief executive officer of Recipharm, said, “The decision to stay in Höganäs is a consequence of the increased demand for the technology and capacity we can offer. This has been somewhat unexpected, but we are of course pleased to see new customers entering in Höganäs and that we by this also are able to continue the services to existing customers. We expect to see volume growth in 2019 and it will allow Recipharm to continue to offer an extensive and competitive manufacturing structure for powders and granules. I am also glad that our highly skilled workforce will have continued employment with Recipharm. They have shown a high level of commitment during this period.”