Hikma Pharmaceuticals acquires generic sterile injectable company Custopharm in an attempt to strengthen its US needle therapy business in a deal valued up to $ 425 million.
Hikma, which was founded in Jordan four decades ago, will acquire California-headquartered Custopharm from Water Street Healthcare Partners in Chicago, he said Monday.
“With this acquisition, Hikma will have a differentiated US portfolio of nearly 130 injectable drugs, an increase of more than five over the past decade,” said Riad Mishlawi, President of Hikma Injectables.
“With this broad portfolio and by combining Custopharm’s strong R&D capabilities with our high-quality and extensive manufacturing footprint, we will be in an excellent position to better meet the growing needs of hospitals, physicians and patients. “
Hikma Pharmaceuticals – which supplies various generic drugs including anesthetics, pain relievers, sedatives, neuromuscular blocking agents, and anti-infective drugs – saw a 17% increase in profits for the first half of 2021, as revenue declined. increased thanks to the increase in sales in its three activities. generic, branded and injectable drug units.
The London-listed company will pay an initial cash consideration of $ 375 million on a debt-free and cash-free basis, with an additional $ 50 million payable with the completion of certain business milestones, Hikma said.
Hikma expects Custopharm to generate 2021 annual revenue of more than $ 80 million and the acquisition to be accretive to Hikma Injectables’ operating margin, he said.
The acquisition of Custopharm is “very complementary” to Hikma’s existing business and adds “differentiated” growth potential, the company said.
“This acquisition provides Hikma with an attractive opportunity to further strengthen our injectables business in the United States, adding an attractive and profitable portfolio of marketed products and an exciting pipeline of future opportunities,” said Siggi Olafsson, Managing Director of Hikma. “Custopharm is an accomplished operator in the US injectables market with a world-class scientific team and strong regulatory background. “
Hikma’s US injectable product portfolio of 119 products and an incremental contribution from new launches partially offset lower demand for products used in the treatment of Covid-19, compared to the first half of 2020, a. he declared in August.
Hikma operates in the United States, the Middle East, North Africa, Europe and employs 8,400 people worldwide.
Update: September 28, 2021, 3:44 a.m.