FIPB approves Sweden-based Recipharm's Kemwell acquisition

Swedish company Recipharm, a pharmaceutical contract development and manufacturing organisation (CDMO), on 30 December 2016 announced that it has received the Foreign Investment Promotion Board’s (FIPB) approval for its acquisition of Kemwell’s Indian operations. 

In April last year, Recipharm announced a pact to acquire Kemwell’s pharmaceutical contract development and manufacturing businesses in India, US and Sweden for $ 205 million (about Rs 1360 crore). Recipharm and Kemwell signed two separate agreements for this. While one agreement covered Kemwell’s US and Swedish operations, the second comprised operations in India.

Acquisition of Kemwell expands Recipharm’s capabilities in India as it provides access to significant cost effective development operation working with customers with strong US ANDAs project pipeline; adds US FDA and EU approved cost effective manufacturing options; and expands manufacturing capabilities, complementary technology to Nitin Lifesciences (the sterile injectables maker in which Recipharm acquired 74 percent stake in October 2015).