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30 July 2015Americas

Hikma to enhance generics portfolio with $2bn Roxane deal

Middle Eastern pharmaceutical company Hikma Pharmaceuticals has agreed to buy Roxane Laboratories from Boehringer Ingelheim for $2.65 billion.

The deal, which will see Hikma acquire the generics company, was announced by the Jordan-based drug maker on Tuesday, July 28.

Roxane, according to Hikma, is a well-established US specialist generics company with a highly differentiated product portfolio and “best-in-class” research and development (R&D) capabilities.

According to Hikma’s statement, the company has agreed to make further cash payments of up to $125 million, subject to the achievement of certain “performance milestones”.

Hikma said that the deal will enhance its position in the US generics market.

The deal also adds “significant breadth” to the company’s US portfolio, bringing in 88 products in specialised and niche segments of the market, including oncology, respiratory, extended release and controlled substances, Hikma’s announcement said.

Hikma will also issue 40 million new shares to Boehringer.

Said Darwazah, chief executive of Hikma, said: “This transaction has significant strategic value for us, transforming our position and scale in the US generics market.

“Roxane’s impressive portfolio, attractive pipeline and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth.”

Roxanne was formed after Boehringer bought the company, which was until then known as The Columbus Pharmaceutical Company, in 1978.

Andreas Barner, chair of the board of managing directors for Boehringer, added: “This is a great opportunity for Roxane to continue to build on its position in the global generics market as part of a fast growing company that has a primary focus on generics.”

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