LONDON,
Sept. 27, 2021 /PRNewswire/ -- This
announcement contains inside information -- Hikma Pharmaceuticals
PLC (Hikma), the multinational pharmaceutical company and
one of the largest suppliers of generic injectable medicines in the
US, today announces that it has agreed to acquire Custopharm Inc.
('Custopharm') from Water Street Healthcare Partners ('Water
Street').
Hikma will pay an initial cash consideration of
$375 million on a debt and cash-free
basis, with a further $50 million in
contingent consideration payable upon the achievement of certain
commercial milestones.
Custopharm, a US-based generic sterile
injectables company with a differentiated product portfolio and
R&D pipeline, currently markets its products in the US through
its commercial arm Leucadia Pharmaceuticals. Since partnering
with Water Street in 2015, Custopharm has received 13 US FDA
approvals, with four first-to-market Abbreviated New Drug
Application (ANDA) approvals - including one with Competitive
Generic Therapy (CGT) designation - and one novel 505(b)(2) NDA
approval. Based in Carlsbad,
California, Custopharm has 39 employees.
Transaction highlights and strategic
rationale:
- Complements Hikma's injectable product portfolio and
pipeline, adding 13 approved products and additional pipeline
products
- Enhances Hikma's R&D capabilities, adding an
experienced scientific team of dedicated R&D professionals with
a proven ability to develop and commercialise complex sterile
injectable products and a state-of-the-art R&D laboratory in
California
- Maintains Hikma's strong regulatory track record.
Custopharm has consistently obtained regulatory approval for new
products with four first-to-market FDA ANDA approvals, including
one CGT exclusivity for Calcitonin Salmon, which was launched in
May 2021
- Strengthens Hikma's platform for future growth.
Custopharm is a growing business and Hikma expects it to
generate full year 2021 revenue in excess of $80 million and for the acquisition to be
accretive to Hikma's Injectables operating margin
Siggi Olafsson,
Chief Executive Officer of Hikma, commented:
"This acquisition provides Hikma with an
attractive opportunity to further strengthen our US injectables
business, by adding an attractive and profitable portfolio of
marketed products and an exciting pipeline of future
opportunities. Custopharm is an accomplished operator in the
US injectables market with a first-class scientific team and a
strong regulatory track record. This acquisition is highly
complementary to our existing business and adds high-quality and
differentiated growth potential."
Riad Mishlawi, President of Hikma Injectables,
commented:
"With this acquisition, Hikma will have a
differentiated US portfolio of close to 130 injectable medicines –
a more than fivefold increase over the last decade. Through 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 serve the
growing needs of hospitals, doctors and patients. I look forward to
welcoming the team at Custopharm and Leucadia to Hikma as we continue to grow and
strengthen our Injectables business."
William C.
Larkins, Ph.D., CEO of Custopharm and Leucadia, added:
"We're excited to become part of Hikma, a global
leader that shares our deep commitment to bringing generic products
to market and into the hands of patients who need them. Water
Street has been an outstanding partner in working with us to build
an exemplary portfolio of complex generic products. We're looking
forward to building on this success."
Terms of the transaction and financial
impact
The up-front consideration of $375 million is on a cash-free, debt-free basis
and is being funded from Hikma's existing cash resources.
The acquisition constitutes a Class 2 transaction
pursuant to the UK Listing Rules. The gross assets of
Custopharm at 31 December 2020 were
$43 million. Losses before tax in the
year to 31 December 2020 were
$7.5 million.
The transaction is subject to US Federal Trade
Commission approval.
The person responsible for the release of this
announcement on behalf of Hikma is Peter
Speirs (Company Secretary).
Enquiries:
|
|
Hikma
(Investors):
|
|
Susan
Ringdal
EVP, Strategic
Planning and Global Affairs
|
+44 (0)20 7399 2760/
+44 (0)7776 477050
|
Guy
Featherstone
Senior Investor
Relations
Manager
|
+44 (0)20 3892 4389/
+44 (0)7795 896738
|
Layan
Kalisse
Investor Relations
Analyst
|
+44 (0)20 7399 2788/
+44 (0)7970 709912
|
|
|
Teneo
(Press):
Charles Armitstead /
Claire Scicluna
|
+44 (0)7703 330 269/
+44 (0)7385 395 028
|
|
|
US
Media
Steven Weiss/David
Belian
|
+1 732 788 8279/ +1
848 254 4875
|
About Hikma
(LSE: HIK) (NASDAQ Dubai: HIK) (OTC:
HKMPY) (rated BBB-/stable S&P and BBB-/stable Fitch)
Hikma helps put better health within reach every
day for millions of people around the world. For more than 40
years, we've been creating high-quality medicines and making them
accessible to the people who need them. Headquartered in the UK, we
are a global company with a local presence across the United States (US), the Middle East and North Africa (MENA) and Europe, and we use our unique insight and
expertise to transform cutting-edge science into innovative
solutions that transform people's lives. We're committed to our
customers, and the people they care for, and by thinking creatively
and acting practically, we provide them with a broad range of
branded and non-branded generic medicines. Together, our 8,600
colleagues are helping to shape a healthier world that enriches all
our communities. We are a leading licensing partner, and through
our venture capital arm, are helping bring innovative health
technologies to people around the world. For more information,
please visit: www.hikma.com
About Custopharm
Custopharm is a leader in the generic injectables
market. Its goal is to provide important new generic injectable
products to the acute and specialty markets and to reach people and
communities with underserved conditions. Custopharm invests
significantly in developing and acquiring new products, including
through strategic partnerships. It also launches newly approved
products through its nationally recognized commercial organization,
Leucadia Pharmaceuticals. Custopharm features a portfolio of highly
differentiated generic products, including four first-to-market
products: Calcitonin Salmon Injection, USP, Synthetic,
Dihydroergotamine Mesylate Nasal Spray, Sodium Tetradecyl Sulfate
(STS) Injection, 3%, and Valrubicin Intravesical Solution, USP.
Headquartered in Carlsbad,
California, Custopharm is a company of Water Street
Healthcare Partners, a strategic investor focused exclusively on
the health care industry.
About Water Street
Water Street is a strategic investor focused
exclusively on health care. The firm has a strong record of
building market-leading companies across key growth sectors in
health care. It has worked with some of the world's leading
companies on its investments including Humana, Johnson &
Johnson, Medtronic and Walgreen Co. Water Street's team is
comprised of industry executives and investment professionals with
decades of experience investing in and operating global health care
businesses. The firm is headquartered in Chicago.
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SOURCE Hikma Pharmaceuticals USA Inc.