17th Jun 2024 09:14
(Alliance News) - Hikma Pharmaceuticals PLC on Monday bolstered its US and injectables business with the purchase of assets from Denmark's Xellia Pharmaceuticals ApS.
Xellia Pharmaceuticals, is a Copenhagen based specialist in anti-infective treatments and other critical care therapies.
Hikma, the London-based pharmaceuticals company, said it has agreed to buy parts of Xellia's US finished dosage form business and assets, including a commercial portfolio and pipeline of differentiated products, a manufacturing facility in Cleveland, Ohio, sales and marketing capabilities, and an R&D centre in Croatia.
Hikma will pay USD135 million cash, plus an additional up to USD50 million subject to the achievement of agreed regulatory and commercial milestones.
Hikma said the deal supports the long-term growth of its injectables business and diversifies its US portfolio and pipeline, adding a range of ready-to-use products.
The acquisition will add eight approved and marketed injectable products to Hikma's US portfolio and 11 pipeline products, the company noted.
The deal will be neutral to core earnings in the first 12 months and accretive thereafter, with meaningful longer-term benefits.
Upon closing, the current Xellia in-market products will contribute around USD75 million revenue on an annualised basis.
Chief Executive Riad Mishlawi said: "This acquisition will add significant scale to our US operations and will enhance our US injectable manufacturing capabilities and portfolio by adding complex technologies. I am confident that this transaction will deliver significant future value to our Injectables business, supporting growth over the medium term."
Hikma said 2024 financial guidance remains unchanged.
Shares in Hikma rose 0.3% to 1,964.00 pence in London early Monday.
By Jeremy Cutler, Alliance News reporter
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