Swedish contract drug manufacturer Recipharm has completed the acquisition of OnTarget Chemistry in Uppsala, Sweden, a company specialized in medicinal chemistry with a portfolio of synthesis and analytical services.

With the acquisition for 15.1 million Swedish crowns, divided equally between cash and shares, Recipharm said it will “significantly broaden” its pharmaceutical development capabilities.

Including the acquired firm’s preclinical chemistry services in its portfolio, the contract drugmaker said it will be able to “engage much earlier in high potential customer projects.” OnTarget Chemistry’s synthesis capabilities will be “of great value” for the GMP development of APIs in Recipharm’s Italian subsidiary, Edmond Pharma, it added.

Carl-Johan Spak, Reicpharm’s executive vice president of development & technology said the acquisition is of strategic importance as it will help the company fuel manufacturing sales in the long term.

Fredrik Lehmann, CEO of OnTarget Chemistry said his company believes it can add preclinical competence and capabilities to Recipharm.