Sources: Recipharm looks at doing an IPO to expand cash

Sweden's CDMO Recipharm wants to expand and is looking at selling shares on Sweden's stock exchange to raise the funds. Citing sources, Reuters said the company might be valued at about 2.5 billion crowns ($383 million), which includes its debt. With drugmakers cutting back their own manufacturing capacity, the contract manufacturing area is seen as having significant growth potential, especially for those operations with global reach. Netherlands-based Royal DSM last year agreed to sell its contract manufacturing operation to Canada's Patheon in a $2.6 billion deal. The hookup was orchestrated by Patheon's ($PTI) controlling partner, private equity investor JLL Partners. JLL cited the growth in contract manufacturing and pharmaceutical services as a driving force. Both those companies had been making smaller acquisitions before hooking up, and JLL said it expects to continue to look for chances to roll up more small contract manufacturers. Story | More