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Recipharm offers to acquire Consort Medical

Recipharm offers to acquire Consort Medical to become a leading inhalation company and top five global contract development and manufacturing organisation player.

Recipharm AB and Consort Medical plc have reached an agreement on the terms of a recommended cash offer by Recipharm Holdings Limited, a wholly-owned direct subsidiary of Recipharm, for Consort, a leading global drug delivery and device company and integrated contract development and manufacturing organisation (“CDMO”). The Board of Consort has confirmed its unanimous intention to recommend a cash offer for an equity value of GBP 505 million (approximately SEK 6,284 million). The company is headquartered in the United Kingdom and listed on the London Stock Exchange.

Recipharm’s aim is to become a leading global CDMO and it is successfully executing against its ambitious growth strategy, targeting annual sales of over SEK 8 billion by 2020. This target has been set amid consolidation in the fragmented CDMO industry, as pharmaceutical companies seek to reduce their fixed costs by rationalising supply chains and focusing on core R&D and sales capabilities. Consequently, they are turning to trusted partners with the necessary scale and breadth of technologies to support them through the drug development process and the subsequent commercial manufacturing and supply.

Given these sector dynamics, and Consort’s strength in pharmaceutical device development and manufacturing, Recipharm believes that the combination is an excellent match. Recipharm has been an admirer of Consort’s innovative delivery technologies, which are highly complementary to Recipharm’s capabilities in the development and commercial supply of both inhaled and sterile injectable finished dose forms.

The Aesica division provides expansion through additional capabilities and access to new customers. The combination of Consort’s product portfolio and services with Recipharm’s existing business will allow the enlarged organisation to become a best-in-class technology based CDMO, positioning it to compete more effectively within a wider part of the value chain.