STOCKHOLM, Sweden--(BUSINESS WIRE)--Regulatory News:
In the Swedish part of the Business Segment Solids and Others, there is need to adapt to lower actual and forecasted volumes of certain products and capture opportunities for improved efficiency. Therefore, accelerated cost and efficiency activities will start during Q4 2015 and run through 2016. The activities will improve margins. Regrettably these activities will affect the number of employees.
Recipharm is today announcing that around 100 positions in greater Stockholm area are subject to notice. The ambition is to achieve annual savings in excess of SEK 60 million from headcount reductions as well as savings in external costs. There will also be efficiencies to gain from streamlining the product range and termination of less profitable contracts. Implementation costs of SEK 15 million are expected and will be charged to Q4 2015 results. Savings are expected to start impact results already in Q1 2016 with full effect beginning of 2017.
The headcount reductions are subject to negotiations with unions.
Progress updates on the program will be included in Recipharm’s earnings reports.
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 8 October 2015, at 14:00 hrs CET.
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.
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
For more information on Recipharm and our services, please visit www.recipharm.com
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