24th Jul 2014 08:43
LONDON (Alliance News) - Hikma Pharmaceuticals PLC said Thursday that it had agreed with Ben Venue Laboratories Inc to acquire its generic injectibles manufacturing site in Bedford, Ohio.
The new deal follows Hikma's agreement in May to buy the assets of Ben Venue Laboratories Inc's US generic injectables business for up to USD300.0 million. Hikma said in May it will pay USD225.0 million up front in cash, with the remaining amount depending on whether certain performance targets are met over a five-year period.
Ben Venue Laboratories is a member of the Boehringer Ingelheim Group of Companies. Its US generic injectables business is named Bedford Laboratories.
Hikma said Thursday it will pay no incremental consideration relating to the acquisition of the Bedford site.
The site includes four manufacturing plants, and a quality and development centre. Hikma said this will significantly strengthen its existing research and development capabilities, and support the development of its pipeline.
Manufacturing at the site was ceased in December, and Hikma said that over time it will evaluate the potential to partially reactive the site to support the delivery of its medium and long-term growth plans. In the shorter term, it will transfer some equipment from the site to its other manufacturing facilities in the US and Europe to increase their manufacturing capacity.
The site's assets have a value of USD4 million, Hikma said.
The acquisition is expected to be slightly dilutive to adjusted earnings per share in 2014 and 2015, and strong add to adjusted earnings per share from 2016 onwards, it said.
"We believe this will meaningfully enhance our R&D capabilities and enable us to significantly expand future capacity," said Chief Executive Said Darwazah in a statement.
Shares in Hikma were trading up 0.2% at 1,796.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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