Injectables Company Hikma To Acquire Custopharm in $425-M DealBy
Hikma Pharmaceuticals, a pharmaceutical company and supplier of generic injectable medicines, has agreed to acquire Custopharm, a Carlsbad, California-based a generic injectable drug company, from Water Street Healthcare Partners, an investment firm, in a deal worth up to $425 million.
Custopharm currently markets its products in the US through its commercial arm, Leucadia Pharmaceuticals. The acquisition complements Hikma’s injectable product portfolio and pipeline. The acquisition adds 13 approved products, which includes four first-to-market FDA abbreviated new drug application approvals, including one competitive generic therapy exclusivity for calcitonin salmon, which was launched in May 2021.
It further enhances Hikma’s R&D capabilities by adding additional pipeline products, a R&D scientific team for developing and commercializing sterile-injectable products, and a R&D laboratory in California.
Under the agreement, 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. The acquisition is subject to regulatory approval.
Hikma expects the business to generate full year 2021 revenue in excess of $80 million.