Can you provide an overview of Recipharm and its current position in the world?

Recipharm was founded in 1995 and initially operated solely in Sweden. However, we expanded our manufacturing operations to other countries in Europe and acquired facilities in India, Israel, and the US. In 2014, we became a public company through an IPO, which helped us secure funding for growth and expansion. Today, we have a strong presence in Western Europe, significant operations in India, and a loyal customer base.

Why did you decide to go public?

Unlike many private equity owners who go public for an exit route, our IPO was primarily aimed at securing funding to accelerate our growth. Going public also provided transparency, which our customers appreciated, as it demonstrated our long-term commitment and reliability as a partner.

Recipharm has experienced rapid inorganic growth through acquisitions. Is 2019 focused on integration?

In 2018, we underwent significant integration efforts, and some of these continued into 2019. While most of the integration processes from previous acquisitions are complete, we are now focusing on utilizing the new capacities and capabilities to their maximum potential. We are also open to future acquisitions while maintaining our focus on organic growth.

What are the key factors for successfully integrating newly acquired plants and business segments?

Integration can be challenging, but we prioritize cultural alignment and values. Our two unique values, tenacity and entrepreneurship, guide us in the integration process. Tenacity ensures we take a long-term view, while entrepreneurship fosters a spirit of taking on challenges and managing operations as if they were our own. We empower site managers to make local decisions and manage their own balance sheets, ensuring continuity and a consistent approach globally.

What is your approach to acquisitions in the CDMO field?

When considering acquisitions, we focus on whether the target company complements our business by adding new technical capabilities, providing access to new markets or potential customers. After closing a deal, we carefully review the previous and current direction of the affiliate and ensure we have the right management in place.

How does Recipharm differentiate itself from larger competitors in the CDMO space?

Recipharm has a successful track record and a long-term partnership approach. As a public company, we provide transparency, which instills credibility and trust. We also simplify processes for customers, managing inventory and offering development capacities in India. Our strong network and presence in Sweden contribute to the growth of the healthcare and life sciences ecosystem in the country.

How important is it for Recipharm to remain based in Sweden?

While not crucial, our base in Sweden provides a great environment for us. We enjoy working with many companies in Sweden, supporting their pharmaceutical development efforts. Our strong relationship with the Swedish environment is evident in our partnerships with local companies.

Recipharm has chosen to focus on fill and finish rather than manufacturing biological compounds. What is your strategy in this segment?

Our core business is fill and finish, and we have chosen to specialize in this niche. We have significant experience in manufacturing injections, which remains an interesting growth driver for us. We focus on reducing complexity for our customers and managing inventory. Additionally, our recent acquisition of a Sanofi site in the UK aligns with our strategy of targeting other niches, such as respiratory products.

Recipharm serves many big pharma clients. How do you approach partnerships with these companies?

While we work with many big pharma customers, true partnerships characterized by transparency and shared information are limited. We believe strategic partnerships require significant resources and open discussions about future strategies. Many big pharma companies aim to reduce the number of suppliers, favoring fewer and larger companies. Consolidation in the manufacturing sector will likely continue in the industry.

Despite consistent growth, the stock price of Recipharm has been volatile. What would you say to investors to gain their trust?

Over the past five years, we have built a global platform, expanded our technology offerings, and diversified our customer base. We have improved crucial financial metrics consistently, and our strong performance is expected to continue. We are confident in our position within the CDMO industry and have plans to further broaden our footprint in India and the US.