27th Sep 2021 08:16
(Alliance News) - Hikma Pharmaceuticals PLC on Monday said it has agreed to buy injectables supplier Custopharm for USD375 million.
Shares in Hikma were trading up 1.5% at 2,421.00 pence each in London on Monday morning.
The FTSE 100-constituent said it plans to buy Custopharm from US healthcare investor Water Street Healthcare Partners.
Besides the USD375 million cash consideration, Hikma has agreed to pay USD50 million, pending the achievement of some commercial milestones.
Carlsbad, California-based Custopharm is a generic sterile injectables company with a differentiated product portfolio and research & development pipeline, the company said.
It currently markets its products in the US through its commercial arm Leucadia Pharmaceuticals, the company added.
Hikma said the acquisition complements its own injectable product portfolio and pipeline, adding 13 approved products and additional pipeline products.
The company expects the acquisition to generate annual revenue of over USD80 million and for the acquisition to be accretive to Hikma's Injectables operating margin.
The deal also enhances its research & development capabilities, Hikma added.
Hikma Chief Executive Siggi Olafsson said: "Custopharm is an accomplished operator in the US injectables market with a first-class scientific team and a strong regulatory track record. This acquisition is highly complementary to our existing business and adds high-quality and differentiated growth potential."
By Scarlett Butler; [email protected]
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