Drug firm Hikma to purchase elements of Danish rival Xellia
- Denmark’s Xellia specialises in injectable antibiotics
- London-listed Hikma will pay an initial $135million for parts of the firm
Hikma Pharmaceuticals will acquire parts of Danish firm Xellia Pharmaceuticals, a drug company specialising in injectable antibiotics.
The London-listed firm will pay $135million (£106million), with an additional $50million (£39million) subject to the achievement of certain regulatory and commercial milestones.
Hikma will acquire parts of Xellia’s US finished dosage form business and assets.
According to its statement this will include a manufacturing facility in Cleveland, Ohio, sales and marketing capabilities, and a research and development center in Zagreb, Croatia.
The acquisition will add eight approved and marketed injectable products to Hikma’s US portfolio, and 11 pipeline products.
Hikma Pharmaceuticals has revealed that it has purchased a number of US injectable assets from Danish firm Xellia Pharmaceuticals for $135million (£106million)
Riad Mishlawi, chief executive of Hikma, said: ‘Hikma has grown to become a top-three US supplier of sterile injectable medicines thanks to our strong record of successfully making value-enhancing acquisitions like this one.
‘This acquisition will add significant scale to our US operations and will enhance our US injectable manufacturing capabilities and portfolio by adding complex technologies.
‘I am confident that this transaction will deliver significant future value to our injectables business, supporting growth over the medium term.’
Dr Bill Larkins, president of Hikma Injectables, added: ‘This acquisition strengthens our injectables business, and I am particularly excited by the potential to further develop our pipeline with the talented and experienced team at the Zagreb R&D facility.
‘The combination of Xellia’s assets with our quality manufacturing expertise and strong commercial capabilities puts us in an even stronger position to serve the growing needs of hospitals and patients.’
In April, Hikma revealed that it expects group revenue to grow in the range of 4 per cent to 6 per cent and for core operating profit to be in the range of $660million to $700million in 2024, in line with prior guidance.
It also added that it expects 2024 injectables revenue to grow in the range of 6 per cent and 8 per cent and for core operating margin to be between 36 per cent and 37 per cent.
Hikma Pharmaceuticals shares were up 0.56 per cent to 1,969p in early afternoon trading on Monday.
