Interim report January - September 2015

July - September 2015

  · Net sales amounted to SEK 785 million (508), an increase of 55%
  · EBITDA increased by 68% and amounted to SEK 86 million (51) giving an EBITDA
margin of 11.0% (10.1)
  · Operating profit (EBIT) amounted to SEK 27 million (25)
  · Profit after tax amounted to SEK 0 million (8), giving a net margin of 0%
(1.6)
  · Earnings per share amounted to SEK -0.01 (0.22), after dilution -0.01 (0.22)

January - September 2015

  · Net sales amounted to SEK 2 526 million (1 696), an increase of 49%
  · EBITDA increased by 59% and amounted to SEK 400 million (252) giving an
EBITDA margin of 15.8% (14.8)
  · Operating profit (EBIT) amounted to SEK 226 million (177)
  · Profit after tax amounted to SEK 189 million (111), giving a net margin of
7.5% (6.5), including a financial investment capital gain of SEK 36.3 million
  · Earnings per share amounted to SEK 4.17 (3.37), after dilution 4.17 (3.37)
  · Cash flow from operating activities was SEK 281 million (168)
  · Net debt to EBITDA was 2.0 (-1.2)

Key figures
                  Jul       Change     Jan        change     Oct 14
               - Sep                - Sep

SEK million    2015   2014  in %    2015   2014   in %    - Sep 15   2014
Net sales      785    508   54.6    2 526  1 696  48.9    3 399      2 569

Net sales      777          53.0    2 485         46.5
(constant FX
rates)
EBITDA         86     51    68.4    400    252    58.8    547        399
EBIT           27     25    7.9     226    177    27.7    321        272
EBITDA margin  11.0   10.1          15.8   14.8           16.1       15.5
(%)
Earnings per   -0.01  0.22          4.17   3.37           5.43       4.63
share
Return on                           10.9   10.8                      11.4
equity (%)
Return on                            12.7  19.4                      12.4
operating
capital (%)
Equity to                           50.2   59.5                      39.4
assets (%)
Net debt                            1 089  -413                      1 164
Net debt to                         0.4    -0.3                      0.5
Equity
Net debt to                         2.0    -1.2                      2.9
EBITDA

Thomas Eldered, CEO:

“With the October announcement of the acquisition of a CDMO in India we are
taking a significant step forward in our strategy for global leadership in our
industry. In our current business, sales in the third quarter increased 55 %.
The growth was driven by acquisitions which also generated even stronger EBITDA
growth. The business segment Solids and Others performed reasonably well in
sales but EBITDA was impacted by lower customer demand for certain good margin
products.

The business segment Development&Technology continued to perform well, in spite
of no material tender sales. During the period we have entered into several new
projects, partnerships and also participated financially in a few companies with
significant future business potential for Recipharm. In the business segment
Sterile Liquids, we saw continued performance according to our plans driven by
good customer demand and a healthy pipeline of new projects while the segment
Solids and Others performed below our expectations. We stated in July that we
will address areas of weak performance and initiate mitigation and improvement
activities. Hence, in October we announced a cost and efficiency program
expected to save more than SEK 60 million per year. Regrettably this will also
mean a reduction of up to 100 positions in the Stockholm area. The program is
now extended to other parts of Swedish operations. Negotiations with unions are
ongoing for all parts of the program.

With investments in property, plant and equipment of over SEK 130 million during
the quarter, expansion project activities were high. The ongoing lyophilisation
expansion in Germany progressed according to plan with planned completion end of
2016.

In September we announced that Recipharm has reached agreement in principle with
Alcon to enter into a long-term manufacturing agreement for a range of
ophthalmology products. This contract is expected to generate around SEK 350
million in annual sales with EBITDA-margin well in line with the group’s
average. As part of this arrangement, Recipharm will also acquire a
manufacturing facility with blow-fill-seal technology, new to Recipharm, located
in Kaysersberg, France for approximately SEK 200 million.

After the quarter, in October, we announced the acquisition of a majority stake
in the Indian steriles CMO Nitin Lifesciences Limited. This transaction
significantly bolsters presence in high growth developing territories and the
deal firmly establishes Recipharm’s emerging market strategy.  On a pro forma
basis Nitin would add more than SEK 400 million to group sales with an EBITDA
margin of approximately 20%.

Looking forward we expect that the weakening of demand for certain products
continues, hence the profit impact from weak performance in Solids and Other
will continue near term. Other areas are expected to perform well. We will
continue to benefit from recent acquisitions, and we are likely to close the
ophthalmology manufacturing agreement within the next few months. With a solid
financial situation, we are very well placed to further explore the
opportunities, including near-term acquisitions, we see in the market.”

The complete interim report is attached through the link at the end of the press
release.

The company invites investors, analysts and media to a web conference with a
presentation (in English) on November 5 at 09:30 am CET where CEO Thomas Eldered
and CFO Björn Westberg will present and comment on the interim report and answer
questions.

To participate in the web conference, please use the below link:

http://edge.media-server.com/m/p/ewdysjjr

Questions may be submitted by dialing below telephone numbers or by typing them
in the Q&A box during the conference. If you don’t wish to ask questions by
telephone you only need to participate through the link above.

From Sweden: + 46 8 505 56 453
From Denmark: + 45 35 44 55 74
From Finland: + 358 9 8171 0490
From Norway: + 47 235 00 251
From the UK: + 44 203 009 24 55
From Germany: +49 211 971 900 76
From Switzerland: +41 225 80 29 94
From France: + 33 170750706
From Spain: +34 911 140 089
From Portugal: +35 121 06 09 104
From the USA: +1 855 228 3719
From India: + 91 2261875156
Pin code for participants:
494329#

For more information, please visit www.recipharm.com or contact:
Thomas Eldered, CEO, thomas.eldered@recipharm.com, +46 8 602 52 00
Björn Westberg, CFO, ir@recipharm.com, +46 8 602 46 20

This information is published in accordance with the Swedish Securities Market
Act, the Swedish Financial Instruments Trading Act and/or the regulations of
NASDAQ Stockholm. This information was submitted for publication on 5 November
2015 at 07:45 am CET.

About Recipharm
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 3.4 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

The company invites investors, analysts and media to a web conference with a
presentation (in English) on November 5 at 09:30 am CET where CEO Thomas Eldered
and CFO Björn Westberg will present and comment on the interim report and answer
questions.

To participate in the web conference, please use the below link:

http://edge.media-server.com/m/p/ewdysjjr

Questions may be submitted by dialing below telephone numbers or by typing them
in the Q&A box during the conference. If you don’t wish to ask questions by
telephone you only need to participate through the link above.
From Sweden: + 46 8 505 56 453
From Denmark: + 45 35 44 55 74
From Finland: + 358 9 8171 0490
From Norway: + 47 235 00 251
From the UK: + 44 203 009 24 55
From Germany: +49 211 971 900 76
From Switzerland: +41 225 80 29 94
From France: + 33 170750706
From Spain: +34 911 140 089
From Portugal: +35 121 06 09 104
From the USA: +1 855 228 3719
From India: + 91 2261875156
Pin code for participants:
494329#
Recipharm AB (publ)
Corporate identity number 556498-8425
Address Lagervägen 7, SE-136 50 Jordbro, Sweden, Telephone 46 8 602 52
00, Fax 46 8 81 87 03
www.recipharm.com