Long-term collaboration gives CDMO primary solid-dose manufacturing responsibility and new subsidiary operations in Spain.

Echoing strategic outsourcing trends in pharma, international CDMO Recipharm AB announced a new and strategic collaboration with Roche to manufacture a range of solid-dose drug products for the company’s global markets. Under the terms of the agreement, Recipharm acquires Roche’s solid-dose manufacturing facility in Leganes, Spain, creating a 100% wholly owned subsidiary.

Employing approximately 200 employees and located near Madrid, the facility is currently producing solid-dose and is licensed to supply Roche products to more than 95 countries. According to Recipharm, the long-term agreement will add approximately €35 million in annual sales and represent about 6% of overall revenue.

Positioning the company’s strategic relationship with Roche, Recipharm’s CEO Thomas Eldered said, “We are continuing to gain momentum in the CDMO market through our various profitable growth initiatives. It has become clear during our interactions with Roche that we are closely aligned in our ways of doing business, and we look forward to developing this relationship further by providing high-quality, reliable supplies from Leganés in future. In addition, we see a highly interesting business development opportunity to add new customers.”

Recipharm, which operates as a full-service, end-to-end CDMO, said the transaction is anticipated to close and operations, fulfilling the manufacturing agreement to start by the end of 2017. With 5000 employees globally, Recipharm is headquartered in Stockholm, Sweden.