After a year of big investments, Recipharm sells off assets in Europe
Recipharm is having a yard sale to start the new year.
The company announced a pair of deals Monday, as the Swedish biotech sold its Fontaine-lès-Dijon, France manufacturing site to a newly-established CDMO Astrea Pharma. It also sold Aesica Pharmaceuticals and the active pharmaceutical ingredient manufacturing site in the UK to Pharmaron.
The sale will help streamline Recipharm operations, and help its financial position as it tries to break into a position as a top-five CDMO, CEO Marc Funk said in statements.
“We see it as a positive step in streamlining our operations and consolidating our position as a top five global Contract Development and Manufacturing Organisation,” he said of the Astrea deal. “I am pleased that this business will get a committed owner with the capacity and capability to develop it to its full potential. We will continue to develop and invest in our highly successful contract manufacturing business.”
Astrea Pharma is in the middle of building up its manufacturing network and offerings. The company plans more acquisitions down the line. The Cramlington site in Newcastle, UK, has 1,076 square-feet worth of commercial capacity, approved by the MHRA and FDA among other regulatory agencies. It’s the first investment by Astrea, as the CDMO provider was just recently established by a team of well-established veterans in the industry.
Meanwhile, Pharmaron is in a similar boat and is looking to bolster its already existing API manufacturing operations at Hoddesdon as it tries offer complete end-to-end services in the UK. This sale will allow the company to provide clients with more customizable options.
Recipharm is expanding its manufacturing rapidly in regions of the world that need it. In July 2021, the company announced the construction of a new fill-finish facility in Uttarakhand, India near Dehradun, as a part of a partnership with the Sobti family that started in 2019.
It’s also building a fill-finish factory in Morocco, thanks largely to a $500 million investment from the government over the next five years. That site will focus on making vaccines for Africa, which has fallen behind in international vaccination efforts significantly. It will be designed to mirror the Monts, France location and is scheduled to be good to go by 2023.
Sanofi sold off its UK respiratory drug manufacturing site to Recipharm in June in a $60 million deal. Recipharm took on all of the plant’s 450 staff members.
Editor’s Note: For more news and exclusive coverage from the manufacturing beat, subscribe to the Endpoints Manufacturing weekly report in your reader profile.