Hikma To Acquire Ben Venue Manufacturing SiteBy
Hikma Pharmaceuticals PLC has agreed to acquired substantially of all the assets of the generic injectables manufacturing site in Bedford, Ohio, of Ben Venue Laboratories, Inc., part of the Boehringer Ingelheim. Hikma had recently closed on the acquisition of Bedford Laboratories, the US generic injectables business of Ben Venue, and announced it was evaluating to include the manufacturing site in Bedford as part of an exclusivity arrangement in that deal.
The Ben Venue manufacturing site includes four manufacturing plants and a Quality and Development Center, which includes a R&D pilot plant and employees. The acquisition is designed to strengthen Hikma’s existing R&D capabilities, support the development of a future pipeline, and expedite the transfer and reactivation of recently acquired abbreviated new drug applications from its acquisition of Bedford Laboratories.
All manufacturing at the Ben Venue site ceased in December 2013. Over time, Hikma said it will evaluate the potential to partially reactivate the site to support the delivery of its medium- and long-term growth plans. In the short term, Hikma will transfer certain equipment, including lyophilizers and filling lines, to its other global manufacturing facilities in the US and Europe to increase its current injectable manufacturing capacity and capabilities.
The gross assets subject to the transaction, prior to the performance of the fair value exercise and excluding acquired intangible assets, have a book value of $4 million. The acquisition of the Ben Venue manufacturing site is subject to customary approvals in the United States.
Earlier this month, Hikma closed on its acquisition of Bedford Laboratories for up to $300 million, which included an upfront cash payment of $225 million and contingent cash payments of up to $75 million, subject to the achievement of performance-related milestones over a period of five years. Hikma acquired Bedford's large product portfolio, intellectual property rights, contracts for products marketed under license, raw material inventories, a R&D and business development pipeline, and a number of employees across key business functions. Hikma said no incremental consideration is payable in relation to Hikma acquiring the Ben Venue manufacturing site.
See related story, “M&A Ramps Up in Global Injectables Market”
Source: Hikma Pharmaceuticals