Recipharm acquires OnTarget Chemistry and extends its offering into preclinical development services
Recipharm announces that it has completeted the acquisition of OnTarget Chemistry in Uppsala, Sweden. OnTarget Chemistry is a fast growing CRO company with a turnover in 2014 of close to SEK 29 million that is specialized in medicinal chemistry offering synthesis and analytical services which include rare and demanding specialties.
With the acquisition of OnTarget Chemistry, Recipharm will significantly broaden its pharmaceutical development capabilities. The inclusion of preclinical chemistry services will give Recipharm the possibility to engage much earlier in high potential customer projects. Furthermore, OnTarget Chemistry’s synthesis capabilities will be of great value for the GMP development of APIs in Recipharm’s Italian subsidiary, Edmond Pharma. Sales in 2015 show more than 60 % of total revenue outside Sweden with substantial sales in Germany, Japan and the UK. The business is profitable and the acquisition is expected to be accretive to EPS from 2016
Carl-Johan Spak, EVP of Development & Technology commented, “With the acquisition of OnTarget Chemistry we will be able serve both existing and new customers with high quality development services. OnTarget Chemistry has a very skilled staff with a high number of PhDs working in a modern laboratory of very high standard. The acquisition is of strategic importance for Recipharm as it will together with the existing development organisation fuel manufacturing sales in the long term”.
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