The contract development and manufacturing organization, Recipharm AB, has entered into an agreement whereby it will acquire a majority stake in Nitin Lifesciences Limited, an Indian sterile injectables CMO, currently owned by the Sobti family.
Recipharm will acquire 74 % of the shares for an estimated purchase consideration of INR 6712 million (SEK 872 million) on a cash and debt free basis. Recipharm will join forces with the founding and managing owners, the Sobti family, to further grow the current business with demanding domestic and multinational customers into a leading position in the Indian sterile CDMO market.
Thomas Eldered, CEO of Recipharm, commented: “I am delighted to be entering into this partnership with the current owners who have successfully expanded and grown the company to what it is today. It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring. The Indian market is particularly attractive, showing high growth levels and the transaction firmly establishes Recipharm’s emerging market strategy. Nitin can also be used as a platform for entry into other regions. We are fortunate to have found such a high quality business and management and we are looking forward to utilising this opportunity to support our current customers’ strategy in the Indian domestic market.”
Dr Chetan Sobti, CEO of Nitin, said: “I am very much looking forward to this partnership with Recipharm. We have grown tremendously in the domestic market, attracting new multinational customers by offering high quality and service. We believe that with the support and network of Recipharm, we shall be able to further expand and continue to grow both domestically and outside the Indian market.”
Commenting on the new venture, Mr Nitin Sobti, COO of Nitin, said: “We are delighted to be establishing this new partnership with Recipharm. It will significantly add to our service offering for Indian customers by way of new technologies, best in class account management as well as global standards of GMP and regulatory compliance.”
About Nitin Lifesciences: Nitin Lifesciences Ltd is a rapidly growing Indian pharmaceutical company with a strong presence in injectable manufacturing. Established in 1994 by Mr M.M. Sobti and the late Mr M.V. Kakkar, Nitin has emerged as one of the largest small volume parenteral manufacturers in India and is engaged in contract manufacturing to major Indian and international pharmaceutical companies.
The company specializes in manufacturing liquid ampoules, liquid vials, sterile dry powder (beta-lactam and non-beta-lactam), multidose eye/ear drops and lyophilized vials covering more than 200 formulations across various therapeutic areas, including antibiotics, antimalarial, NSAIDs, anti-inflammatory and local anaesthetics. It brings a high quality customer base including a growing number of multinational Big Pharma customers supplying the Indian domestic market.