OR WAIT null SECS
The purchase will strengthen Hikma’s position in the US generic drug market.
Hikma Pharmaceuticals has agreed to buy Boehringer Ingelheim's US generic drug business (Roxane Laboratories) for approximately $2.65 billion in cash and stock. Roxane is a US specialty generic drug company that was founded in 1885 as The Columbus Pharmaceutical Company. Its name was changed to Roxane Laboratories after being bought over by Boehringer in 1978.
Under the terms of the acquisition, Hikma will pay gross consideration of $1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer. Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.
According to the press release issued by Hikma, this acquisition would position it as the sixth biggest provider of generic drugs in the US. The deal enhances Hikma’s US portfolio with the addition of 88 highly differentiated products in specialized and niche segments of the market, including oncology, respiratory, extended release, and controlled substances. It also boosts Hikma’s pipeline with 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities. Further information on the acquisition and transaction highlights can be found here.