9th Aug 2007 07:00
Hikma Pharmaceuticals Plc09 August 2007 Hikma acquires Egyptian pharmaceutical company LONDON, 9 August 2007 - Hikma Pharmaceuticals PLC ("Hikma")(LSE: HIK)(DIFX:HIK), the multinational pharmaceuticals group, announces that it has agreed toacquire the entire issued share capital of Alkan Pharma ("Alkan")(the "Company"), an Egyptian pharmaceuticals company, for a cash consideration of$60.5 million (EGP 342 million). The acquisition is scheduled to complete inthe second half of 2007, subject to meeting certain regulatory requirements. Theacquisition will be funded entirely by debt. Alkan develops, manufactures and markets generic pharmaceuticals in both solidand liquid form for the Egyptian market. Alkan has 175 registeredpharmaceutical products, including nearly 60 products under license from leadingmultinational pharmaceutical companies. In addition, the Company has 140products pending registration. Alkan's product portfolio spans a number oftherapeutic categories, including Alimentary and Metabolic, Musculoskeletal andInfectious Disease. Alkan's substantial sales and marketing infrastructure, which includes more than200 sales and marketing staff, operates across Egypt and has excellentrelationships with distributors, doctors and pharmacists. The Company'smanufacturing facilities operate at a very high standard and are routinelyaudited by local Egyptian health authorities as well as by its multinationallicensing partners. Alkan has grown sales by 18% and 34% in the past two years, respectively, withnet sales in 2006 of $14.6 million (2005: $10.9 million) and profit before taxin 2006 of $3.5 million (2005: $1.5 million). Said Darwazah, CEO of Hikma commented: "Alkan's local manufacturing capabilities, strong product portfolio andregistration pipeline, together with its significant sales force, provides Hikmawith an excellent platform from which to access the large and growing Egyptianmarket. Alkan offers a strong commercial and distribution platform from whichto introduce Hikma's branded generics into the Egyptian market and adds a broadproduct portfolio and pipeline that can be leveraged into Hikma's existingmarkets. Alkan has a strong management team and we look forward to working withthem to build Hikma's presence in the Egyptian market." - ENDS - Enquiries: Hikma Pharmaceuticals PLCSusan Ringdal, Investor Relations Director +44 20 7399 2760 Brunswick GroupJon Coles / Justine McIlroy / Alex Tweed +44 20 7404 5959 About Hikma Hikma Pharmaceuticals PLC is a fast growing multinational group focused ondeveloping, manufacturing and marketing a broad range of both branded andnon-branded generic and in-licensed products. Hikma's operates through threebusinesses: "Branded", "Injectables" and "Generics", based principally in theMiddle East and North Africa ("MENA"), where it is a market leader and sellsacross 18 countries, the United States and Europe. In 2006, Hikma achievedrevenues of $317 million (2005 $262 million) and profit attributable toshareholders was $55 million (2005 $44 million). At 31 December 2006, the Grouphad over 2,400 employees. For news and other information, please visitwww.hikma.com. The Egyptian pharmaceutical market The Egyptian pharmaceutical market was worth approximately $2.2 billion in 2005,making it the second largest regional pharmaceutical market after Turkey.Healthcare expenditure amounted to 3.6% of GDP, of which 1.1% was attributableto pharmaceutical spending. In the five-year period ending in 2005, theEgyptian pharmaceutical market grew at a compound annual growth rate ofapproximately 5%. The market is expected to continue to grow, given thefavourable economic environment, its large and growing population, increasedhealth awareness and an expanding public health insurance coverage. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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