As Recipharm continues to refine its footprint, the CDMO is selling its development and small-scale active pharmaceutical ingredient (API) manufacturing facility in Yavne, Israel, to Scinai Immunotherapeutics.
Along with plant handover, the companies have struck a commercial partnership that will allow Scinai to continue to service Recipharm’s clinical-stage customers without interruption, the companies said in separate press releases Tuesday.
The plant's workforce will remain intact as Scinai integrates the facility’s operations into its CDMO structure. Scinai is based 65 miles to the east in Jerusalem.
The transaction allows Sweden-based Recipharm to optimize its global manufacturing network while building partnerships that enhance its early-stage pipeline access and long-term commercial opportunities, the company said in its release.
With the collaboration, Recipharm becomes Scinai’s “preferred partner” for late-stage clinical and commercial production, while Scinai will act as the “preferred early-stage development partner” for Recipharm.
The CDMOs added that they will mutually refer projects and that Scinai may subcontract selected manufacturing and development capabilities from Recipharm as part of an agreed commercial framework.
“Recipharm continues to offer broad early-stage development and clinical manufacturing capabilities for biologic molecules and for drug product development across our CDMO platform,” Greg Behar, the CEO of Recipharm, said in a release. “We are adding an additional, high-quality pathway whose programs originate in Israel to progress efficiently into late-stage and commercial supply within Recipharm's global network.”
The financial terms of the deal were not disclosed. Scinai noted that it framed the deal as a share purchase and ensured the Recipharm Israel operation was transferred with "appropriate working capital" to help preserve continuity at the site.
Recipharm falls under the umbrella of Swedish private equity firm EQT, which acquired the company in 2021. Since the buyout, Recipharm has made several transactions in its effort to focus on biologics and cell and gene therapy manufacturing.
In 2022, it sold a drug ingredients plant in England to Pharmaron of China and a capsule and tablet production facility in France to Astrea Pharma. Early that same year, Recipharm also charted acquisitions of Vibalogics, GenIbet and Arranta Bio as part of its biologics expansion.
In 2024, Recipharm sold seven of its plants in Europe to Blue Wolf Capital. The Swedish CDMO has also separated its inhaled and nasal drug delivery unit into a separate company called Bespak.
Scinai has undergone a recent transformation as well. It was formerly known as BiondVax Pharmaceuticals before rebranding in 2023 and refocusing on the development of inflammation and immunology products.
With the acquisition of Recipharm Israel, Scinai has expanded its capabilities to include recombinant proteins, small molecules, peptides, antibodies and oligonucleotides, the company said.
“By combining our early-stage development strengths with Recipharm Israel’s manufacturing capabilities and Recipharm’s global footprint, we are creating a differentiated offering that supports clients from early development through commercialization,” Amir Reichman, Scinai’s CEO, said in a statement.
During the pandemic, Recipharm made a big score partnering with Moderna to produce its COVID-19 vaccines. In 2022, the CDMO’s revenue skyrocketed by 30% to a company record 13,669 Swedish krona ($1.29 billion).