Plans for the transaction – which saw Recipharm pay SEK824m ($101m) for a 74% stake in Nitin – were announced last October when executive vice president Mark Quick told us the fast growing Indian market is attractive to the CMO’s customers.
Recipharm paid for its Nitin stake partly through a fundraising round conducted in January that saw it issue 2,250,000 shares and raise a total of SEK276m.
CEO Thomas Eldred reiterated the CMOs interest in the Indian market, describing the completion of the deal as “an important step in the development of both companies.”
In addition to expanding Recipharm’s global reach, the deal also strengthens the CMOs capabilities in sterile injectables and lyophilization he said.
The deal is part of the growth strategy Recipharma adopted when it went public in June 2014.