Recipharm continues manufacturing operations in Höganäs, Sweden
Recipharm today announces that it will continue the manufacturing operations at its facility in Höganäs, Sweden, operations that earlier were set towards being discontinued.
In 2017, Recipharm announced the intention to discontinue the operations in Höganäs and evaluate different options for the facility, including divestment of the site. During this evaluation, new customers have actively approached Recipharm, adding demand for several new products in Höganäs. Consequently, Recipharm is now reversing the decision to discontinue the operations in order to progress these new opportunities.
At this stage, an important new customer contract has now been established, comprising development and launch of a new product by a large European pharmaceutical company. Recipharm expects that today’s decision will facilitate the completion of further customer agreements, as well as extending relationships with already existing customers.
Recipharm’s operations in Höganäs employ approximately 45 people and are specialised in sachet and stick pack filling, primarily for powders and granules.
Thomas Eldered, CEO of Recipharm, says: “The decision to stay in Höganäs is a consequence of the increased demand for the technology and capacity we can offer. This has been somewhat unexpected, but we are of course pleased to see new customers entering in Höganäs and that we by this also are able to continue the services to existing customers.”
“We expect to see volume growth already in 2019 and it will allow Recipharm to continue to offer an extensive and competitive manufacturing structure for powders and granules. I am also glad that our highly skilled workforce will have continued employment with Recipharm. They have shown a high level of commitment during this period.”
The decision to continue the Höganäs operations will trigger release of the associated accrual for estimated closing costs. This will lead to a minor non-recurring income that will be reported in the Q3 2018 results.
Thomas Eldered, CEO, telephone: +46 8 602 52 10
Tobias Hägglöv, firstname.lastname@example.org, +46 8 602 52 00
This information is information that Recipharm AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 19 October 2018, at 10:00 am CET.
Recipharm is a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry employing around 6,000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies. Recipharm’s turnover is approximately SEK 6.0 billion and the company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US and is headquartered in Stockholm, Sweden. The Recipharm B-share (RECI B) is listed on Nasdaq Stockholm.
For more information on Recipharm and our services, please visit www.recipharm.com