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30 September 2014

Hikma receives approval for colchicine 0.6mg capsules

London, 30 September 2014 – Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces the approval of its New Drug Application (NDA) for colchicine 0.6mg capsules by the US Food and Drug Administration (FDA).

London, 30 September 2014 – Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces the approval of its New Drug Application (NDA) for colchicine 0.6mg capsules by the US Food and Drug Administration (FDA). Hikma will market its colchicine under the brand name MITIGARE.

MITIGARE is indicated for prophylaxis of gout flares in adults. This NDA has been approved under Section 505(b)(2) of the US Federal Food Drug and Cosmetic Act.

Said Darwazah, Chairman and CEO of Hikma, said, "This approval demonstrates our strong regulatory capabilities and the successful execution of our strategy to develop a more differentiated product portfolio for the US market."

According to IMS Health, sales of colchicine in the US market were approximately $688 million for the 12 months ending August 2014.

-- ENDS --

Enquiries:

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 7831 3113

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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29 September 2014

Hikma Meet the Management Day

London, 29 September 2014 – Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical group, will host a Meet the Management Day in London on Tuesday 2 December 2014.

London, 29 September 2014 – Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical group, will host a Meet the Management Day in London on Tuesday 2 December 2014.

If you are interested in attending this event please contact Kate Komornicka kate@hikma.uk.com to register your interest and for further details.

-- ENDS --

Enquiries:

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Head of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 3727 1000

 

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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17 September 2014

Hikma completes acquisition of Ben Venue manufacturing site

London, 17 September 2014 – Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has completed its acquisition of substantially all of the assets of the generic injectables manufacturing site of Ben Venue Laboratories, Inc. ("Ben Venue"), part of the Boehringer Ingelheim Group of Companies, as agreed on 24 July 2014.

London, 17 September 2014 - Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has completed its acquisition of substantially all of the assets of the generic injectables manufacturing site of Ben Venue Laboratories, Inc. ("Ben Venue"), part of the Boehringer Ingelheim Group of Companies, as agreed on 24 July 2014.

The Ben Venue site includes four manufacturing plants and a state-of-the-art Quality and Development Centre ("QDC"). The QDC, which includes a R&D pilot plant, will significantly strengthen Hikma's existing R&D capabilities and support the development of a strong future pipeline. The four manufacturing plants are not currently in use. Hikma will transfer certain modern, advanced equipment to significantly increase capacity at its other manufacturing facilities in the United States and Europe.

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

"I am very pleased to be acquiring the Ben Venue manufacturing site, which will significantly enhance our R&D capabilities and enable us to expand future capacity. This reflects our commitment to the long term growth of our global Injectables business and will create significant strategic value."

-- ENDS --

Enquiries:

Hikma Pharmaceuticals PLC  
Susan Ringd al, VP Corporate Strategy and Director of Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 3727 1000

 

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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20 August 2014

Hikma Pharmaceuticals Interim Results

Hikma delivers excellent first half results with 16% revenue growth and 44% increase in adjusted EPS

London, 20 August 2014 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today reports its interim results for the six months ended 30 June 2014.

Hikma delivers excellent first half results with 16% revenue growth and 44% increase in adjusted EPS

London, 20 August 2014 - Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today reports its interim results for the six months ended 30 June 2014.

H1 2014 highlights

Group

  • Group revenue increased by 16% to $738 million, driven by the very strong performance of our Injectables business in the first half
  • Group adjusted operating margin rose to 33.2%, up from 29.6%, reflecting a higher Injectables margin
  • Profit attributable to shareholders increased by 132% to $169 million. On an adjusted basis, profit attributable to shareholders rose 44% to $176 million
  • Basic EPS increased 130% to 85.4 cents per share
  • Net cash flow from operating activities increased by $64 million to $200 million
  • Completed the acquisition of assets of Bedford Laboratories ("Bedford") in July 2014 and agreed to acquire substantially all of the assets of the Ben Venue manufacturing site, significantly enhancing the long term strength of our global Injectables business
  • Continued to build our global product portfolio through new product introductions across all countries and markets – launched 49 products and received 140 product approvals
  • Interim dividend of 7.0 cents per share, in line with the first half of 2013
  • Declared a special dividend of 4.0 cents per share, reflecting the exceptionally strong market opportunities captured by our US businesses in the first half of 2014

Branded

  • Good performances across most markets, with strong growth in key markets such as Egypt and Saudi Arabia
  • Lower than expected sales in Algeria due to restructuring and in Sudan, Iraq and Libya due to escalating political disruptions
  • Branded revenue grew by 1% and adjusted operating profit decreased by 9%, with adjusted operating margin of 20.8%, compared with 23.0% in the first half of 2013
  • Branded business is now expected to deliver low single digit revenue growth for the full year, resulting in an adjusted operating margin below full year 2013

Injectables

  • Global Injectables revenue grew 41%, with an adjusted operating margin of 41.0%
  • Excellent performance in the first half, driven by strong underlying growth in the US, enhanced by specific market opportunities
  • Continue to expect Injectables revenue growth above 20% for the full year, reflecting the weighting of sales towards the first half, and adjusted operating margin of around 35% for the full year, before the slight dilution from Bedford

Generics

  • Continued benefit from specific market opportunities and the re‐introduction of products drove Generics revenue of $128 million, a decrease of only 3%
  • Generics adjusted operating profit was $79 million compared with $82 million in the first half of 2013, with an adjusted operating margin of 61.7%
  • We now expect full year revenue to be around $200 million, with an adjusted operating margin of above 45%

Said Darwazah, Chief Executive Officer of Hikma, said:

“I am very pleased with our first half results, which reflect strong underlying performances in our businesses and our success in capturing a number of specific market opportunities.

In the MENA region, our focus on new, higher value products is delivering good results in key markets. Whilst this is being offset by weakness in other markets this year, our businesses across the region remain well positioned to drive future growth. Our Injectables business delivered an excellent performance, as we captured a number of attractive market opportunities. I am delighted we have acquired the Bedford assets, which will add products, R&D capabilities and capacity to support future growth for the global Injectables business. Our Generics business is performing extremely well and we are working hard to strengthen the product portfolio and pipeline.

Over the past eighteen months the Group has generated significant cash flows and our strong balance sheet is enabling us to make strategic investments across our businesses. Overall, the Group is benefiting from our diversified business model and I am pleased to be reiterating our Group guidance of around 5% revenue growth for the full year.”

Group financial highlights

Summary P&L
$ million
H1 2014 H1 2013 Change
Revenue 738 638 +16%
Gross profit 441 353 +25%
Gross margin 59.8% 55.3% +4.5pp
       
Operating profit 236 143 +65%
Adjusted operating profit1 245 189 +30%
Adjusted operating margin 33.2% 29.6% +3.6pp
       
EBITDA2 269 182 +48%
       
Profit attributable to
shareholders
169 73 +132%
       
Adjusted profit attributable to
shareholders1
176 122 +44%
       
Basic earnings per share (cents) 85.4 37.1 +130%
Adjusted basic earnings per share (cents)1 88.9 61.9 +44%
       
Dividend per share (cents) 7.0 7.0 --
Special dividend per
share (cents)
4.0 3.0 +33%
Total dividend per
share (cents)
11.0 10.0 +10%
       
Net cash flow from operating activities 200 136 +47%

Enquiries:

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Director of Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 3727 1000

 

About Hikma
Hikma Pharmaceuticals PLC is a fast growing pharmaceutical group focused on developing, manufacturing and marketing a broad range of both branded and non‐branded generic and in‐licensed products. Hikma's operations are conducted through three businesses: "Branded", "Injectables" and "Generics" based primarily in the Middle East and North Africa ("MENA") region, 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.

A presentation for analysts and investors will be held today at 09:30 at FTI Consulting, 200 Aldersgate, Aldersgate Street London EC1A 4HD. To join via conference call please dial: +44 (0) 20 3003 2666 or 0808 109 0700 (UK toll free). Alternatively you can listen live via our website at www.hikma.com. A recording of both the meeting and the call will be available on the Hikma website. The contents of this website do not form part of this interim management report.

1Before the amortisation of intangible assets (excluding software) and exceptional items, as set out in note 4 to the condensed set of financial statements
2Earnings before interest, tax, depreciation and amortisation. EBITDA is stated before impairment charges and share of results from associated companies

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07 August 2014

Notice of Interim Results Announcement – Analyst Presentation

London, 07 August 2014 – Notice of Interim Results Announcement 2014. A presentation and webcast for analysts will take place at 9:30am GMT at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD (please note NEW address).

Notice of Interim Results Announcement 2014. A presentation and webcast for analysts will take place at 9:30am GMT at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD (please note NEW address).

Wednesday 20 August 2014

9.30am (London time)/ 11.30am (Jordan time)

FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. (PLEASE NOTE NEW ADDRESS)

To join via conference call please dial: +44 (0) 20 3003 2666
UK Toll-Free Number: 0808 109 0700

Alternatively you can listen live via our website: www.hikma.com or www.cantos.com

Playback facility:
A playback of the conference call will be available via our website later that day on www.hikma.com

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24 July 2014

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.

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 adjusted2 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.”

--  ENDS  --

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)

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Director of Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting  
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 3727 1000

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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15 July 2014

Hikma completes the acquisition of assets of Bedford Laboratories

London, 15 July 2014 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has completed its acquisition of assets of the US generic injectables business, Bedford Laboratories ("Bedford") from Ben Venue Laboratories, Inc., a member of the Boehringer Ingelheim Group of Companies.  As previously announced, the total consideration of up to $300 million will be satisfied through an upfront cash payment of $225 million and contingent cash payments of up to $75 million, subject to the achievement of performance-related milestones over a period of five years.

London, 15 July 2014 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has completed its acquisition of assets of the US generic injectables business, Bedford Laboratories ("Bedford") from Ben Venue Laboratories, Inc., a member of the Boehringer Ingelheim Group of Companies.  As previously announced, the total consideration of up to $300 million will be satisfied through an upfront cash payment of $225 million and contingent cash payments of up to $75 million, subject to the achievement of performance-related milestones over a period of five years.

Hikma is acquiring Bedford’s large product portfolio, intellectual property rights, contracts for products marketed under license, raw material inventories, a strong R&D and business development pipeline and a number of employees across key business functions.  The combination of these assets with Hikma’s existing global Injectables platform will significantly strengthen Hikma’s position as a leading generic injectables company in the US.

In addition, Hikma has an exclusivity arrangement with the Boehringer Ingelheim Group to potentially acquire substantially all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio.  Due diligence is ongoing and any acquisition will be subject to customary approvals in the United States and the United Kingdom.

Said Darwazah, Chairman and Chief Executive Officer of Hikma commented:
"I am very excited to have completed this transaction, which will significantly increase the scale and scope of our US Injectables business.  Adding a large portfolio of high value, niche and differentiated products will strengthen our market position and Bedford's deep pipeline and impressive R&D capabilities will support our future growth strategy.  We believe that this transaction will deliver significant future value.”

--  ENDS  --

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Director of Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting  
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 7831 3113

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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28 May 2014

Hikma Pharmaceuticals PLC – Acquisition of Bedford Laboratories

London, 28 May 2014 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has signed an asset purchase agreement with Ben Venue Laboratories, Inc., a member of the Boehringer Ingelheim Group of Companies, to acquire assets of Bedford Laboratories (“Bedford”), its US generic injectables business, for a total consideration of up to $300 million, which will be satisfied through an upfront cash payment of $225 million. A further $75 million in contingent cash payments will be paid, subject to the achievement of performance-related milestones, over a period of five years. In addition, Hikma has entered into an exclusivity arrangement with the Boehringer Ingelheim Group to acquire substantially all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio, one of the largest sterile injectable manufacturing sites in the world.

Hikma significantly strengthens its global Injectables business, acquiring assets of Bedford Laboratories

London, 28 May 2014 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has signed an asset purchase agreement with Ben Venue Laboratories, Inc., a member of the Boehringer Ingelheim Group of Companies, to acquire assets of Bedford Laboratories (“Bedford”), its US generic injectables business, for a total consideration of up to $300 million, which will be satisfied through an upfront cash payment of $225 million. A further $75 million in contingent cash payments will be paid, subject to the achievement of performance-related milestones, over a period of five years. In addition, Hikma has entered into an exclusivity arrangement with the Boehringer Ingelheim Group to acquire substantially all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio, one of the largest sterile injectable manufacturing sites in the world.

Bedford is a generic injectables company with the third largest portfolio of generic injectable products in the US.1 Under the agreement, Hikma is acquiring Bedford’s assets, including a large product portfolio, intellectual property rights, contracts for products marketed under license, raw material inventories, a strong R&D and business development pipeline and a number of employees across key business functions. 

The combination of these assets with Hikma’s existing global Injectables platform will significantly strengthen Hikma’s position as a leading generic injectables company in the US.

Transaction highlights

  • Helps to address critical supply shortages in the US market through the planned re-introduction of the acquired products
  • Delivers significant strategic value, adding a large portfolio, broad pipeline and experienced employee base to strengthen Hikma’s position as a leading generic injectables company in the US
  • Brings a broad range of complementary products, including a large oncology portfolio and a number of niche, differentiated products
  • Adds a unique and attractive R&D pipeline and a number of business development opportunities, along with experienced R&D and operational teams
  • Leverages Hikma’s US FDA approved injectable manufacturing capacity in the US, Portugal and Germany, as well as its expertise in sterile liquid, lyophilised and cytotoxic production, bringing scale benefits and cost synergies
  • Slightly dilutive to adjusted2 earnings per share (“EPS”) in 2014 and 2015, with strong EPS accretion thereafter as the acquired products are re-introduced to the market

Said Darwazah, Chief Executive Officer of Hikma commented:
“I am very excited to be making this strategically important investment in our Injectables business.  Bedford’s impressive product portfolio and deep pipeline will significantly increase the scale and scope of our rapidly growing US Injectables business.  The large number of high value, niche and differentiated products we are acquiring will strengthen our market position in the US and will benefit patients by bringing back products to the market that are currently in short supply.

Through our disciplined approach to M&A, we have established an excellent track record of making value enhancing acquisitions.  I am confident that we have the technical capabilities and manufacturing expertise to successfully re-launch the acquired products over the next few years and our success in integrating the MSI acquisition will help to ensure a smooth integration.  We remain committed to investing in the long term growth of our Injectables business and we believe that this transaction will deliver significant future value for the Group.”

Paul R. Fonteyne, US Country Managing Director, President and CEO of Boehringer Ingelheim USA Corporation, and Chairman, Ben Venue Board of Directors commented:
"We believe that this is a positive development, allowing Hikma to leverage its existing infrastructure and manufacturing capabilities to re-introduce important products to the US market, bringing significant benefit to patients.  For more than 20 years, Bedford Laboratories and its product portfolio have been of great value to patients, customers and the marketplace.  As part of Hikma, the Bedford team will remain focused on strengthening its relationships with customers and continuing to serve the needs of patients."

Strategic rationale

In 2013, Hikma’s global Injectables business generated revenue of $536 million and accounted for 39% of Group revenue.  Investing in the growth and development of this business has been a key strategic priority in recent years.  In May 2011, we completed the acquisition of Baxter’s Multi-Source Injectables business (“MSI”), which transformed our US Injectables business, establishing Hikma as the third largest supplier by volume in the US generic injectables market.  The large and fast growing US generic injectables market is valued at around $7.6 billion3 and offers significant future growth opportunities.  Our strategic focus within Injectables continues to be to increase our US market share by value through investment in a strong product portfolio and pipeline.

This acquisition marks another significant step towards achieving our ambitions in Injectables, adding a large portfolio of 84 products, which combined with Hikma’s 63 existing marketed products, creates the broadest portfolio of generic injectable products in the US market.4 Bedford’s portfolio spans a range of therapeutic categories and includes a large number of oncology products, as well as a number of niche, differentiated products.

Bedford also brings a unique and attractive R&D pipeline of 27 products, of which 16 are filed and pending approval from the US FDA.  The pipeline assets focus on higher value, medically necessary and acute care products, including numerous Paragraph IV opportunities.  The pipeline also includes several exciting business development projects, including licensing and co-development partnerships.

The acquisition will strengthen our current US operations, adding highly skilled employees across key business functions, such as R&D, sales and marketing, business development and regulatory affairs.  These employees will bring experience and expertise in US injectables and strengthen Hikma’s existing operations.

Hikma will be able to leverage its US FDA approved facilities in the US, Portugal and Germany to manufacture the acquired products, which we will begin transferring to Hikma’s sites immediately following closing the transaction.  We are targeting to transfer an initial tranche of around 20 products, which we expect to be able re-launch to the market between 2015 and 2017, with the potential to transfer further products thereafter.  The products will be prioritised based on the strength of the market need, the ease of transfer and the expected gross margin contribution.

In addition, Hikma has entered into an exclusivity arrangement with the Boehringer Ingelheim Group to potentially acquire substantially all of the assets of the Ben Venue manufacturing site in Bedford, Ohio, subject to due diligence and customary approvals in the United States and the United Kingdom.  These assets would significantly enhance Hikma’s existing global injectable manufacturing capabilities, adding one of the largest lyophilisation plants in the world and dedicated cytotoxic facilities.

Financial information

In 2013, the assets subject to the transaction generated revenue of $19 million and negative EBITDA of $22 million,5 which reflects the limited sales of Bedford’s products following manufacturing issues at its affiliate, Ben Venue, which halted production in 2013.  Hikma expects the acquired assets to generate limited revenue in 2014 and 2015 while products are being transferred to Hikma’s manufacturing sites.  By 2017, Hikma expects revenue from the acquired assets to have increased significantly to around $150 million, as the acquired products are re-launched and certain pipeline opportunities are realised, with strong growth potential thereafter.  The acquisition is expected to be slightly dilutive to adjusted6 EPS in 2014 and 2015 and strongly accretive to adjusted EPS from 2016 onwards.

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 $65 million.7 They are primarily comprised of raw material inventories and will help to accelerate the re-launch of the acquired products to the market.  The transaction will be funded by new debt facilities.  We expect to complete the transaction in the second half of 2014, subject to customary regulatory approvals.

Following completion of this transaction, we will continue to have the financial flexibility to pursue further value enhancing opportunities across our businesses.

A conference call for analysts and investors will be held on 28 May 2014 at 14:00 BST on UK and international dial in: +44 (0) 20 3426 2890 or UK toll free dial in:  0808 237 0060.  A live webcast of the conference call will be available at www.hikma.com/en/investors.aspx.  A recording of the call will be available on the Hikma website.

Centerview Partners and Citigroup Global Markets Limited (“Citi”) acted as financial advisers to Hikma.  Citi and HSBC jointly led the arrangement of the financing.   White & Case LLP acted as lead counsel to Hikma.

Bank of America Merrill Lynch acted as the financial adviser, and Covington & Burling LLP acted as counsel, to Ben Venue.

--  ENDS  --

1. IMS Healthcare, CY December 2013 and Bedford management information
2. Before amortisation (excluding software) and integration costs
3. IMS Healthcare, MAT December 2013
4. IMS Healthcare, CY December 2013 and Bedford management information
5. Bedford management information.  Reflects carve-out adjustments and includes non-recurring items and other pro-forma adjustments
6. Before the amortisation of intangibles (excluding software)
7. Bedford management information.  Reflects carve-out adjustments

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Henderson, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
FTI Consulting  
Ben Atwell/ Matthew Cole/ Julia Phillips +44 (0)20 7831 3113

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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