Hikma Pharmaceuticals has agreed to acquire generics businesses of Boehringer Ingelheim (BI), Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc., for $2.65 billion in a cash-and-stock deal. The transaction value represents $1.18 billion in cash and the acquisition by BI of a 16.71% stake in Hikma upon the issuance of 40 million new Hikma shares to BI, following the closing of the deal. Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.

The move adds to Hilkma’s US generics portfolio, giving Hikma 88 products in specialized and niche segments of the market, including oncology, respiratory, extended-release, and controlled substances. It also adds to 89 products to Hikma’s pipeline, including 57 Paragraph IV products, 13 of which are first-to-file opportunities.The deal represents a second major deal by Hikma with BI. In July 2014, Hikma acquired the US generic injectables business, Bedford Laboratories, from BI. The Roxane pending acquisition strengthens Hikma’s non-injectable business in the US.

Roxane is a well-established US specialty generics company with product facilities in Columbus, Ohio. The 875,000-square foot facility manufacture solids, liquids, nasal sprays and dry-powder inhalers. It also includes a standalone high-containment facility, including product and analytical development areas, quality control laboratories, active pharmaceutical filling, manufacturing, packaging and a finished goods warehouse. In 2014, the Roxane manufacturing facility produced 67 million packaged units.

In 2014, Hikma's generics business that sells non-injectable products in the US market, generated revenue of $216 million and accounted for approximately 15% of the company’s revenue.

Source: Hikma