Scinai acquires Recipharm’s Israeli API facility in strategic CDMO partnership

ISRAEL—Swedish contract development and manufacturing organization (CDMO) Recipharm is selling its development and small-scale active pharmaceutical ingredient (API) manufacturing facility in Yavne, Israel, to Scinai Immunotherapeutics.

The companies announced the transaction in separate press releases, revealing a deal that extends beyond a simple sale.

The transaction includes a commercial partnership designed to maintain uninterrupted service for Recipharm’s clinical-stage customers.

Scinai will retain the plant’s entire workforce as it integrates the facility into its CDMO operations.

The Jerusalem-based company, located 65 miles east of Yavne, gains immediate manufacturing capabilities through the acquisition.

Reciprocal partnership terms

The collaboration establishes Recipharm as Scinai’s preferred partner for late-stage clinical and commercial production.

In return, Scinai becomes Recipharm’s preferred early-stage development partner.

The arrangement includes mutual project referrals and provisions for Scinai to subcontract selected manufacturing and development capabilities from Recipharm under 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,” Recipharm CEO Greg Behar said in a statement.

“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.”

Financial details undisclosed

Neither company disclosed the financial terms of the deal.

Scinai structured the transaction as a share purchase and ensured that Recipharm Israel transferred with appropriate working capital to preserve continuity at the site.

Recipharm’s ongoing transformation

Swedish private equity firm EQT acquired Recipharm in 2021 and has since overseen multiple transactions aimed at focusing the company on biologics and cell and gene therapy manufacturing.

In 2022, Recipharm sold a drug ingredients plant in England to China’s Pharmaron and a capsule and tablet production facility in France to Astrea Pharma.

That same year, the company acquired Vibalogics, GenIbet, and Arranta Bio to expand its biologics capabilities.

In 2024, Recipharm divested seven European plants to Blue Wolf Capital and separated its inhaled and nasal drug delivery unit into an independent company called Bespak.

Scinai’s evolution

Scinai recently rebranded from BiondVax Pharmaceuticals in 2023, shifting its focus to inflammation and immunology products.

The acquisition of Recipharm Israel expands Scinai’s capabilities to include recombinant proteins, small molecules, peptides, antibodies, and oligonucleotides.

“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,” Scinai CEO Amir Reichman said.

During the pandemic, Recipharm partnered with Moderna to produce COVID-19 vaccines.

In 2022, the company’s revenue surged 30 percent to a record 13,669 Swedish krona (USD 1.29 billion).