While perhaps overshadowed by the $40.5bn (€36.5bn) Teva-Allergan deal announced yesterday, Hikma is expanding its presence in the generics space through the acquisition of Boehringer-Ingelheim subsidiary Roxane Laboratories.
The company is shelling out $2.65bn for the specialty generics business, which according to CEO Said Darwazah, will transform the company’s scale and propel it to the position of sixth largest company by revenue within the US generics market.
“Roxane’s impressive portfolio, attractive pipeline and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth,” he said.
“The acquisition also significantly expands our manufacturing capacity and technological capabilities. Roxane has an excellent team of highly skilled employees and we are very excited about the value they will bring to Hikma.”
Roxane has a USFDA approved site in Columbus, Ohio which has the capabilities to make a range of dosage forms, including modified release solid orals and high potency formulations.
The deal was welcomed by Jefferies’ analyst James Vane-Tempest, who said in a note he expected “a positive share price reaction as the market has been waiting for a deal, for which Roxanne cements Hikma's US ambitions.”
Last year, Hikma acquired another Boehringer Ingelheim subsidiary, Bedford Labs for $300m and later took up the option to buy the accompanying Ben Venue Laboratories, comprising of a large sterile site that had been shuttered by the parent company following years of regulatory issues.