Swedish drug developer Recipharm bought a local CRO for 15.1 million kronor ($6.2 million), fleshing out its chemistry services as it works to expand its share of the European market.
Under the deal, Recipharm is paying a 50-50 split of cash and stock for OnTarget Chemistry, based in Uppsala. The CRO specializes in chemical synthesis and analytical services, bolstering Recipharm's preclinical chemistry capacity, the company said. OnTarget's work will also complement Edmond Pharma, Recipharm's API-focused Italian subsidiary, according to the company.
OnTarget brought in 29 million kronor ($3.6 million) in revenue last year and is on track to bank more than 60% of its 2015 sales from outside of Sweden, Recipharm said. OnTarget turned a profit in 2014, and Recipharm expects its acquisition to add to earnings from 2016 onward.
"With the acquisition of OnTarget Chemistry we will be able serve both existing and new customers with high quality development services," Recipharm Executive Vice President Carl-Johan Spak said in a statement. "OnTarget Chemistry has a very skilled staff with a high number of PhDs working in a modern laboratory of very high standard."
The deal marks Recipharm's fourth acquisition since going public last year, following a $13.2 million buy of a Flamel facility, a $140 million takeout of Portuguese CDMO Lusomedicamenta Sociedade Técnica Farmacêutica and a $164.5 million deal for Italy's Corvette Pharmaceutical Services.
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