Mumbai: Recipharm AB will acquire a majority stake in Nitin Lifesciences Ltd, an Indian sterile injectibles contract manufacturer, for 671.2 crore.

Recipharm, a European contract development and manufacturing organization (CDMO), will buy 74% in Nitin Lifesciences, the Indian company said in a press release.

“Recipharm will join forces with the founding and managing owners, the Sobti family, in order to further grow the current business with demanding domestic and multinational customers into a leading position in the Indian sterile CDMO market," the release said.

The deal will help both companies increase scale and profitability, and significantly bolster presence in high-growth developing territories, the release added.

The transaction is likely to be closed by the first quarter of calendar year 2016, following approvals from the Foreign Investment Promotion Board.

“It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring. The Indian market is particularly attractive showing high growth levels and the transaction firmly establishes Recipharm’s emerging market strategy," said Thomas Eldered, chief executive officer at Recipharm. He added that Nitin Lifesciences can also be used as a platform for entry into other regions.

Established in 1994, Nitin Lifesciences is engaged in contract manufacturing for major Indian and international pharmaceutical companies. The firm has three manufacturing facilities located at Karnal (Haryana) and at Paonta Sahib (Himachal Pradesh).

The company specializes in manufacturing of liquid vials, sterile dry powder, multidose eye/ear drops. It covers more than 200 formulations across various therapeutic areas including antibiotics, anti-malarial, anti-inflammatory and local anaesthetics.

Consulting firm EY acted as the advisor to Nitin Lifesciences on this transaction.