FEF Chemicals
Recipharm has bought OnTarget Chemistry, a CRO in Uppsala, Sweden, that specialises in medicinal chemistry, offering synthesis and analytical services that include rare and demanding specialties.
With OnTarget Chemistry, Recipharm significantly will broaden its pharmaceutical development capabilities. The inclusion of preclinical chemistry services will give Recipharm the ability to engage much earlier in high potential customer projects.
Furthermore, OnTarget Chemistry’s synthesis capabilities will be of great value for the GMP development of APIs in Recipharm’s Italian subsidiary, Edmond Pharma. Sales in 2015 show more than 60% of total revenue outside Sweden, with substantial sales in Germany, Japan and the UK. The business is profitable and the acquisition is expected to be accretive to EPS from 2016.
Carl-Johan Spak, EVP of Development & Technology, commented: “With the acquisition of OnTarget Chemistry. we will be able serve both existing and new customers with high quality development services. OnTarget Chemistry has a very skilled staff with a high number of PhDs working in a modern laboratory of a very high standard. The acquisition is of strategic importance for Recipharm as it will together with the existing development organisation fuel manufacturing sales in the long term”.
Fredrik Lehmann, CEO of OnTarget Chemistry, added: “The fit with Recipharm’s development organisation is very good for us. We believe we can add preclinical competence and capabilities to Recipharm and we also look forward to contributing with a broad range of both local and international customers. This will be a great opportunity for us to continue to grow our business within Recipharm."