The Foreign Investment Promotion Board (FIPB) has approved Sweden based Recipharm’s acquisition of Kemwell’s Indian operation.
Recipharm on April 18, 2016 announced that it had entered into two separate agreements to acquire pharmaceutical contract development and manufacturing operations (CDMO) from Kemwell. The first acquisition comprises operations in the US and Sweden, and the second acquisition comprises operations in India.
The conditions for the first acquisition was fulfilled last April and Recipharm completed this transaction. The second acquisition, regarding Kemwell’s pharmaceutical operations in India, was conditional on governmental approvals, and was expected to close before year end.
The Indian Foreign Investment Promotion Board has now granted approval for second transaction to take place. Closing is expected to occur at the beginning of 2017 and comprises the acquisition of Kemwell’s pharmaceutical manufacturing and development operations located in Bengaluru known as Recipharm Pharmaservices Private Ltd.
Recipharm is a leading contract development and manufacturing organisation in the pharmaceutical industry employing some 3,500 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development.