Recipharm invests SEK 8 million in Pharmanest to support the development of Pharmanest's lead drug candidate SHACT
Recipharm Venture Fund AB has together with Östersjöstiftelsen and Praktikerinvest made a joint investment of SEK 28 million in Pharmanest AB. Recipharm's part of the investment is SEK 8 million. At the same time, Karolinska Development AB and its co-investor KCIF have agreed to sell their shares in Pharmanest to the three investors in exchange for an earn out arrangement on future revenues. After completion of the transaction Recipharm will hold approximately 25 % of the shares of Pharmanest.
Recipharm has since 2011 supported Pharmanest in its development of SHACT, an innovative topical pharmaceutical product for pain relief in conjunction with insertion of IUDs (Intra Uterine Devices). With this investment Pharmanest will have sufficient funding to move forward towards its next important milestone – submission of an application for regulatory approval in Europe for its first product candidate. Recipharm will receive pre-commercial revenues by providing Pharmanest with technical transfer and scale up services for future commercial manufacturing in its Karlskoga facility in Sweden.
Carl-Johan Spak, EVP Development & Technology Recipharm, commented: "We are very pleased to have reached an agreement with our co-investors and Karolinska Development to secure sufficient funding for Pharmanest. We are convinced that Pharmanest with its product SHACT will be able to help a huge amount of women with proper pain relief where there is no good alternative today. We do believe that our technical capabilities will also be very helpful in the further development of the product and we are looking forward to manufacturing the product in commercial volumes upon regulatory approval".
"I am delighted to have Recipharm on board as a new shareholder. The capital raised will enable us together with Recipharm to prepare for the commercialization of SHACT. Our clinical trials indicate that SHACT has the potential to become the first safe and effective pain relief product for millions of women who use IUD. We now take a great leap forward and create opportunity for women undergoing gynecological procedures to be offered pain relief", Gunilla Lundmark, CEO of Pharmanest commented.
Carl-Johan Spak, EVP Development & Technology Recipharm
[email protected], +46 (0)8 602 53 13
Gunilla Lundmark, CEO Pharmanest AB
Recipharm is a leading CDMO (Contract Development and Manufacturing Organisation) in the pharmaceutical industry employing some 2,200 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material including API and pharmaceutical product development. Recipharm manufactures more than 400 different products to customers ranging from Big Pharma to smaller research- and development companies. Recipharm's turnover is approximately SEK 3.3 billion and the Company operates development and manufacturing facilities in Sweden, France, the UK, Germany, Spain, Italy and Portugal and is headquartered in Jordbro, 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
Pharmanest is a Stockholm-based pharmaceutical developing new unique formulations based on well documented active substances. The formulations are applied topically in the cervix and uterus using applicators developed by Pharmanest. The pain relief is obtained immediately, no advanced instrumentation is required and the systemic effect is minimal. Pharmanest's first product candidate SHACT is developed to be used for pain relief in connection with gynaecological procedures. The clinical data generated so far clearly demonstrates that SHACT may play an important role in pain management within the gynaecological procedure segment.
For more information on Pharmanest, please visit www.pharmanest.se