Recipharm acquires OnTarget Chemistry and extends its offering into preclinical development services

Recipharm today announces that it has completeted the acquisition of OnTarget
Chemistry in Uppsala, Sweden. OnTarget Chemistry is a fast growing CRO company
with a turnover in 2014 of close to SEK 29 million that is specialized in
medicinal chemistry offering synthesis and analytical services which include
rare and demanding specialties.
With the acquisition of OnTarget Chemistry, Recipharm will significantly broaden
its pharmaceutical development capabilities. The inclusion of preclinical
chemistry services will give Recipharm the possibility to engage much earlier in
high potential customer projects. Furthermore, OnTarget Chemistry’s synthesis
capabilities will be of great value for the GMP development of APIs in
Recipharm’s Italian subsidiary, Edmond Pharma. Sales in 2015 show more than 60 %
of total revenue outside Sweden with substantial sales in Germany, Japan and the
UK. The business is profitable and the acquisition is expected to be accretive
to EPS from 2016

Carl-Johan Spak, EVP of Development & Technology commented, “With the
acquisition of OnTarget Chemistry we will be able serve both existing and new
customers with high quality development services. OnTarget Chemistry has a very
skilled staff with a high number of PhDs working in a modern laboratory of very
high standard. The acquisition is of strategic importance for Recipharm as it
will together with the existing development organisation fuel manufacturing
sales in the long term.

Fredrik Lehmann, CEO of OnTarget Chemistry added “The fit with Recipharm’s
development organisation is very good for us. We believe we can add preclinical
competence and capabilities to Recipharm and we also look forward to
contributing with a broad range of both local and international customers. This
will be a great opportunity for us to continue to grow our business within
Recipharm”.
The purchase price was SEK 15.1 million, of which 50% is paid in cash and the
remaining 50% is paid through an issue in kind of 45.838 series B shares in
Recipharm. The share issue was resolved upon 15 June 2015 by the board of
directors of Recipharm, based on an authorization given by the AGM 7 May 2015.
Approximately 36% of the B shares in Recipharm the seller receives are subject
to a lock-up of 2 years. The remaining B shares will be distributed by the
seller to certain individuals that contributed their shares in OnTarget
Chemistry to the seller before the transaction was consummated.

For more information please visit www.recipharm.com or contact:
Thomas Eldered, CEO Recipharm, thomas.eldered@recipharm.com, + 46 8 602 52 10
Carl-Johan Spak, EVP D&T, carl-johan.spak@recipharm.com, telephone: +46 8 602 53
13

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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 15 June
2015, at 13:00 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 3.3 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

About OnTarget Chemistry
OnTarget Chemistry is a chemistry contract research organization (CRO) that
offers premium quality synthetic and analytical chemistry services performed by
a professional and experienced team of predominately PhD. level chemists with
pharma backgrounds. The company is headquartered in Sweden with marketing
presence in US, Japan, UK, Finland, Germany and France and has an U.S. office in
Chicago since 2013.

For further information visit http://www.ontargetchemistry.com
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