07.29.15
Boehringer Ingelheim is selling its Roxane business, which combines the operations of Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc., to Hikma Pharmaceuticals PLC for approximately $2.65 billion.
Roxane is a well-established U.S. specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.
The deal transforms Hikma’s position in the U.S. generics market, establishing it as the sixth largest company by revenue. At the same time, the move adds significant breadth to Hikma’s U.S. portfolio, bringing 88 differentiated products in specialized and niche segments of the market, including oncology, respiratory, extended release and controlled substances.
Hikma has also enhanced its pipeline, adding 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities
Hikma will pay gross consideration of $1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer—representing approximately 16.71% of Hikma’s issued share capital immediately following closing and admission. Based on an agreed issue price for the new Hikma shares of £23.50 per share and the US:GBP exchange rate of 1.56:1, the aggregate value of the gross consideration payable on closing is approximately $2.65 billion. Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.
“This transaction has significant strategic value for us, transforming our position and scale in the U.S. generics market,” commented Said Darwazah, chief executive officer, Hikma. “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. The acquisition also significantly expands our manufacturing capacity and technological capabilities. Roxane has an excellent team of highly skilled employees and we are very excited about the value they will bring to Hikma.”
Roxane is a well-established U.S. specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.
The deal transforms Hikma’s position in the U.S. generics market, establishing it as the sixth largest company by revenue. At the same time, the move adds significant breadth to Hikma’s U.S. portfolio, bringing 88 differentiated products in specialized and niche segments of the market, including oncology, respiratory, extended release and controlled substances.
Hikma has also enhanced its pipeline, adding 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities
Hikma will pay gross consideration of $1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer—representing approximately 16.71% of Hikma’s issued share capital immediately following closing and admission. Based on an agreed issue price for the new Hikma shares of £23.50 per share and the US:GBP exchange rate of 1.56:1, the aggregate value of the gross consideration payable on closing is approximately $2.65 billion. Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.
“This transaction has significant strategic value for us, transforming our position and scale in the U.S. generics market,” commented Said Darwazah, chief executive officer, Hikma. “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. The acquisition also significantly expands our manufacturing capacity and technological capabilities. Roxane has an excellent team of highly skilled employees and we are very excited about the value they will bring to Hikma.”