Recipharm: Q2 rev up on M&As, higher demand and anti-radiation med

By Gareth Macdonald

- Last updated on GMT

Related tags Revenue

ex-Alcon facility in France was acquired by Recipharm in 2015
ex-Alcon facility in France was acquired by Recipharm in 2015
Acquisitions, higher demand for sterile liquid processing and a surge in Thyrosafe orders helped Recipharm offset pricing pressure in Portugal and lower UK sales in Q2.

The Sweden-based contractor posted revenue of SEK1.23bn ($143m) for the three months to the end of June. Operating profit in the period was SEK150m, up 61% and margins improved from 17.9% to 19.4%.

Recipharm attributed the revenue growth to contributions from acquisitions over the past 12 months - OT Chemistry AB, Mitim Srl, Nitin Lifesciences Ltd, Kemwell AB and Cirrus Pharmacuticals Inc - which contributed SEK 230.7m in the quarter.

It also said higher than expected demand for blow-fill-seal (BFS) services at a facility in Kaysersberg, France it acquired from Novartis’ Alcon unit last year​ had increased revenue for the quarter.

A spokesman told us: “We have seen good volume development from the [Alcon] contract at a higher than anticipated rate. We also see good demand going forward for the technology, which is one of the factors behind our recent expansion announcement​.”

Earlier this month the firm said it would invest €18m ($20m) to up BFS capacity at the facility, citing demand from customers in “markets including the US, Turkey, Australia and Canada​” as the motivation.

Quarterly revenue was also boosted by sales of Recipharm’s anti-radiation drug Thyrosafe.

Other products fared less well. Recipharm reported that lower reference prices in Portugal and lower sales in the UK of high-margin own products had a negative impact.

The spokesman told us the UK products had been impacted by increased competition, adding that “the weaker pound did not help matters in this regard when the sales translate in SEK​.”

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