Hikma Pharmaceuticals, a leading multinational pharmaceutical group, is set to acquire Roxane Laboratories and Boehringer Ingelheim Roxane, from Boehringer Ingelheim.

The acquisition has an aggregate value of gross consideration of about $2.65 billion, sad a statement.

Roxane is a well-established US specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.  

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 will transform Hikma’s position in the US generics market, establishing it as the sixth largest company by revenue.

Roxane’s portfolio and pipeline will add 88 highly differentiated products to Hikma’s portfolio in the US and enhance Hikma’s pipeline, adding over 89 research and development (R&D) projects.

It will focus 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.

Said Darwazah, chief executive officer, Hikma, said: “This transaction has significant strategic value for us, transforming our position and scale in the US generics market.

“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.” - TradeArabia News Service