Recipharm buys Italy's Mitim Srl for $ 74 mn

Recipharm AB, the Swedish contract development and manufacturing organisation (CDMO), on February 23, 2016 entered into an agreement to acquire Italian CDMO Mitim Srl for SEK 640 million (about $ 74 million) adding scale and capabilities to the group. Mitim is currently owned by a private Italian family and is specialised in the filling of injectable beta lactam products. Mitim is located in Brescia close to Recipharm’s existing operations in Northern Italy.
 
The acquisition of Mitim consolidates Recipharm’s leading position as a CDMO and adds an important new technology with FDA inspected facilities in the niche area of filling of sterile beta lactams. Sales to the US (the largest markets for these types of products) has significantly increased in recent years through the expansion of partnerships with existing customers who are making new product registrations in the territory. There is limited competition for this technology in Europe.
 
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The transaction also complements Recipharm’s existing Italian operations with a number of commercial and operational synergies expected to be realised through the integration of the operations which are geographically very close.
 
Thomas Eldered, CEO, Recipharm AB, commented, “This acquisition is very exciting for Recipharm and represents an important step in our consolidation of the CDMO industry. The transaction also cements our leading position in beta lactam production and provides Recipharm not only with additional scale but also opportunities to realise commercial and operational synergies as we combine it with our existing Italian business”.
 
Mitim is a pharmaceutical contract manufacturing company located in Brescia, Northern Italy. The product portfolio includes beta lactams in dry sterile powder for injectable solutions, tablets and oral suspensions. Other products include injectable sterile solutions, oral solids and liquids as well as semi-solids. The manufacturing site has five production lines and the company completed a significant investment in a new state-of-the-art production line for injectable beta lactams in March 2015.