Business & Finance
Recipharm's board withdraws SEK1.60 per share dividend proposal due to COVID-19 outbreak
9 April 2020 -

Recipharm AB (STO:RECIB), a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry, reported on Wednesday the decision by its board of directors to withdraw the previously communicated dividend proposal of SEK1.60 per share and the new proposal to the Annual General Meeting, of 12 May 2020, that no dividend be paid.

Reportedly, the outbreak of COVID-19 and the extraordinary measures and recommendations that authorities and governments have taken to reduce the spread of the coronavirus have significantly affected operating conditions on the markets where Recipharm operates. Accordingly, the board has decided to withdraw the dividend.

According to the company, given the rapid development of the spread of COVID-19 and the high level of uncertainty currently present, it is too early to quantify the potential impact on its operations and results. This decision does not constitute a change in Recipharm's long-term dividend policy or future ambitions for dividend, the company clarified.