Hikma completes acquisition of Custopharm

Rhea-AI Summary

Hikma Pharmaceuticals has completed its acquisition of Custopharm for an initial $375 million, enhancing its US Injectables portfolio significantly. This acquisition adds 13 approved products and strengthens Hikma's R&D capabilities, bolstering its position as the second-largest supplier of generic sterile injectables in the US. Notable achievements include Custopharm's strong regulatory track record with four first-to-market FDA approvals. The acquisition was approved by the US Federal Trade Commission and positions Hikma for better service delivery to healthcare providers and patients.

Positive

• Acquisition increases Hikma's portfolio by 13 approved products.
• Enhances R&D capabilities with a specialized team and advanced laboratory.
• Strengthens regulatory track record with Custopharm's market achievements.

Negative

• None.

Combination expands US Injectables portfolio and pipeline

LONDON, April 21, 2022 /PRNewswire/ -- Hikma Pharmaceuticals PLC (Hikma), the multinational pharmaceutical company, today announces that it has completed its acquisition of Custopharm Inc. ('Custopharm') from Water Street Healthcare Partners ('Water Street'), following approval from the US Federal Trade Commission.

As previously announced on 27 September 2021, Hikma has acquired Custopharm for 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.   

Hikma is the second-largest supplier by volume of generic sterile injectable medicines used by US hospitals and health care providers. The combination with Custopharm enhances Hikma's R&D capabilities and pipeline and expands Hikma's differentiated US portfolio to close to 130 commercialised injectable medicines – a more than fivefold increase over the last decade. 

Transaction highlights and strategic rationale:

• Complements Hikma's product portfolio and pipeline, adding up to 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

Siggi Olafsson, Chief Executive Officer of Hikma, commented:

"The acquisition of Custopharm immediately strengthens our already strong US injectables business by adding an attractive and profitable portfolio of marketed products, an exciting pipeline of future opportunities, and a first-class scientific team with a strong regulatory track record. This acquisition is highly complementary to our existing business and places us in an excellent position to better serve the growing needs of hospitals, doctors and patients. I am excited to welcome the team at Custopharm to Hikma as we continue to grow and strengthen our Injectables business."

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/Camilla Cunningham	+44 (0)7703 330 269/ +44 (0)7464 982426
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 8,700 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

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SOURCE Hikma Pharmaceuticals USA Inc.

FAQ

What is the value of Hikma's acquisition of Custopharm?

Hikma acquired Custopharm for an initial cash consideration of $375 million, with an additional $50 million contingent on achieving commercial milestones.

How does the acquisition of Custopharm affect Hikma's product portfolio?

The acquisition adds 13 approved products to Hikma's portfolio, enhancing its US Injectables offerings significantly.

When was the acquisition of Custopharm completed?

The acquisition was completed on April 21, 2022, following approval from the US Federal Trade Commission.

What strategic benefits does Hikma gain from acquiring Custopharm?

Hikma enhances its R&D capabilities, strengthens its product pipeline, and reinforces its position as a leading supplier of generic injectables in the US.