Acquisition

RNS Number : 2081N

Hikma Pharmaceuticals Plc

24 July 2014

 



PRESS RELEASE

Hikma agrees to acquire Ben Venue manufacturing site adding R&D capabilities and capacity

London, 24 July 2014 - Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has agreed with Ben Venue Laboratories, Inc. ("Ben Venue"), part of the Boehringer Ingelheim Group of Companies, to acquire substantially all of the assets of their generic injectables manufacturing site in Bedford, Ohio.  The acquisition is pursuant to the exclusivity arrangement entered into on 28 May 2014.  No incremental consideration is payable in relation to Hikma acquiring the Ben Venue manufacturing site.

The Ben Venue manufacturing site includes four manufacturing plants and a Quality and Development Centre ("QDC") with excellent capabilities.  The QDC, which includes a R&D pilot plant and a team of experienced employees, will significantly strengthen Hikma's existing R&D capabilities, support the development of a strong future pipeline and expedite the transfer and reactivation of recently acquired ANDAs.

All manufacturing at the Ben Venue site was ceased in December.  Over time, Hikma 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 modern, advanced equipment, including lyophilisers and filling lines, to its other global manufacturing facilities in the US and Europe, significantly increasing 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.[1]  The acquisition of the Ben Venue manufacturing site is subject to customary approvals in the United States.

The guidance previously provided on 28 May 2014 remains unchanged.  The acquisition of assets of Bedford, including the Ben Venue site, is expected to be slightly dilutive to adjusted[2] earnings per share in 2014 and 2015 and strongly accretive to adjusted earnings per share from 2016 onwards.

Said Darwazah, Chairman and Chief Executive Officer of Hikma commented:

"I am very pleased to be acquiring the Ben Venue manufacturing site and their talented R&D team.  We believe this will meaningfully enhance our R&D capabilities and enable us to significantly expand future capacity.  This reflects Hikma's commitment to the long term growth of our fast growing global Injectables business and will create significant strategic value."

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Enquiries

Hikma Pharmaceuticals PLC                                                       

Susan Ringdal, VP Corporate Strategy and Director of Investor Relations  [phone]/ [phone]

Lucinda Henderson, Deputy Director of Investor Relations                              [phone]/ [phone]

FTI Consulting                                                                                  

Ben Atwell/ Matthew Cole/ Julia Phillips                                                                 [phone]

About Hikma

Hikma Pharmaceuticals PLC is a fast growing multinational group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed products.  Hikma operates through three businesses: "Branded", "Injectables" and "Generics", based principally in the Middle East and North Africa ("MENA"), where it is a market leader, the United States and Europe.  In 2013, Hikma achieved revenues of $1,365 million and profit attributable to shareholders of $212 million. 

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[1] The book value of the gross assets in the financial statements of Ben Venue Laboratories, Inc at 31 December 2013

[2] Before the amortisation of intangibles (excluding software)

 

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