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Recipharm cites sales and earnings hike in acquisition plan

By Gareth MacDonald+

14-Aug-2014
Last updated on 14-Aug-2014 at 16:51 GMT

Recipharm AB will continue its spending spree of the past few years according to CEO Thomas Eldered, who reiterated the CMO’s plan to grow through takeovers in a results presentation earlier today.

The Swedish contract manufacturing organisation (CMO), which completed its initial public offering (IPO) on the NASDAQOMX in April , saw net sales increase 15% to SEK611m (€89m) and profit after tax climb 40% to SEK74m.

Recipharm said that all of its business segments had reported improvements and described the progress made by its development and technology operations as “particularly good.”

Despite only being a public company for four months, Recipharm has already spoken about its desire to growth through acquisitions several times.

Eldered reiterated this again today citing the firm’s financials.

These good results combined with the company’s strong balance sheet leave us very well positioned to boost this positive growth through profitable acquisitions and outsourcing transactions with major pharmaceutical companies.”

During the period we analyzed and evaluated a number of interesting potential acquisitions that could expand our customer base as well as providing geographical expansion and new technologies. We expect this to result in acquisition activities.”

Even before the IPO Recipharm was no slouch in the growth department. In the past five years, for example, the CDMO has completed multiple acquisitions , numerous facility expansions  and carve outs .

However, recent consolidation in the services sector has further increased the pressure on CDMOs to offer both a diverse range of capabilities and global reach.

Recipharm told us earlier this year that: “Our asset base is still focused on Europe although we have customers worldwide. There are still areas of Europe where we believe we can still expand, but we are looking further afield.

An obvious choice is the US but there are also attractive opportunities in emerging markets which we will continue to evaluate.”

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