Recipharm AB (STO: RECI-B) has completed the acquisition of Kemwell's pharmaceutical business in Bengaluru, India, the company announced on Monday.

The move significantly expands the company's position in emerging markets, taking sales in these markets to over SEK800m. This is dominated by sales directly to the fast-growing pharma market in India.

The acquisition represents a major extension of Recipharm's capabilities in India, bringing numerous benefits. These include access to significantly increased development operations both in scale and breadth of capabilities, and the addition of US FDA and EU approved highly efficient manufacturing operations.

Recipharm's synergistic business model will be further strengthened as a result of the acquisition by aligning Indian development and technology operations with the combined company's manufacturing capabilities in India and Europe.

The acquisition price for the businesses in India totals INR7,980m (SEK1,058m) on a cash and debt free basis. While it is not included in the transaction, the agreement gives Recipharm a right of first negotiation to acquire Kemwell's Indian biopharma business. For now, this will continue to be retained by the sellers.