US injectables supplier Hikma acquires Custopharm
pharmafile | September 27, 2021 | News story | Sales and Marketing |
Multinational pharmaceutical company, Hikma Pharmaceuticals PLC, has announced that it has agreed to acquire Custopharm Inc from Water Street Healthcare Partners. Hikma is also one of the largest suppliers of generic injectable medicines in the US, and this move is expected to strengthen the US injectables business.
Hikma will pay an initial cash consideration of $375 million on a debt and cash-free basis, with an additional $50 million in contingent consideration payable on the achievement of certain commercial milestones.
This transaction has an array of highlights and strategic rationale for Hikma. Custopharm’s strong R&D pipeline enhances Hikma’s own R&D capabilities, adding an experienced scientific team of dedicated individuals with a proven ability to develop and commercialise complex sterile injectable products, as well as a modern R&D laboratory in California.
Hikma will also gain access to 13 approved products and additional pipeline products, which complements Hikma’s injectable product portfolio and pipeline. 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, according to Riad Mishlawi, President of Hikma Injectables.
Most importantly, this acquisition 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.
Siggi Olafsson, CEO of Hikma, commented: “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.”
William C Larkins, CEO of Custopharm and Leucadia, added: “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.
The transaction is subject to US Federal Trade Commission approval.
Lina Adams
