(MENAFNEditorial) Hikma Pharmaceuticals PLC the fast growing multinational pharmaceutical group, today announces that it has agreed to acquire Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc. (together, "Roxane"), from Boehringer Ingelheim.
Roxane is a well-established US specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities. The acquisition has an aggregate value of gross consideration of approximately $2.65 billion. Under the terms of the acquisition, Hikma will pay in cash and will issue to Boehringer new Hikma shares. Through this partnership, Hikma has also agreed to make contingent cash payments upon achieving certain performance milestones.
The acquisition transforms Hikma's position in the US generics market, establishing Hikma as the sixth largest company by revenue[1]. It is highly complementary to Hikma's US business and brings significant potential for growth.
Roxane's impressive portfolio and attractive pipeline adds 88 highly differentiated products to Hikma's portfolio in the US and enhances Hikma's pipeline, adding over 89 R&D projects. It focuses on higher value, niche and differentiated products, which will drive sustainable long-term growth.
The transaction supports Hikma's strategy of expanding its capabilities in specialised and niche segments of the market, including oncology, respiratory, extended release and controlled substances. It adds a best-in-class manufacturing facility with differentiated, technologically complex formulation and alternative dosage form capabilities.
Moreover, Roxane has a very strong team of highly skilled employees and an experienced R&D team who will add value to Hikma's team.
"This transaction has significant strategic value for us, transforming our position and scale in the US generics market," said Said Darwazah, Chief Executive Officer of Hikma Pharmaceuticals.
"I am also pleased to be further strengthening our relationship with Boehringer Ingelheim, building on the acquisition of Bedford Laboratories which we made in 2014. Their shared belief in the growth potential of the Hikma Group is reflected in the equity stake that they are taking."
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