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28 July 2015

Hikma acquires Roxane Laboratories, transforming its position in the US generics market

London, 28 July 2015 – Hikma Pharmaceuticals PLC (“Hikma” or the “Company”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has agreed to acquire Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc. (together, “Roxane”), from Boehringer Ingelheim (“Boehringer”). Roxane is a well-established US specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.

Acquisition enhances scale and will create platform for sustainable long-term growth

Expected to be accretive in 2016 and very strongly accretive thereafter

London, 28 July 2015 – Hikma Pharmaceuticals PLC (“Hikma” or the “Company”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces that it has agreed to acquire Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc. (together, “Roxane”), from Boehringer Ingelheim (“Boehringer”).  Roxane is a well-established US specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.

Under the terms of the acquisition, on closing of the transaction Hikma will pay gross consideration of US$1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer (representing approximately 16.71 per cent. of Hikma’s issued share capital immediately following closing and admission).  Based on an agreed issue price for the new Hikma shares of £23.50 per share and the US:GBP exchange rate of 1.56:1, the aggregate value of the gross consideration payable on closing is approximately US$2.65 billion.  Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.

Transaction highlights

  • Transforms Hikma’s position in the US generics market, establishing Hikma as the sixth largest company by revenue1
  • Adds significant breadth to Hikma’s US portfolio, bringing 88 highly differentiated products in specialised and niche segments of the market, including oncology, respiratory, extended release and controlled substances
  • Enhances Hikma’s pipeline adding 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities
  • Creates sustainable long-term growth potential, adding Roxane’s highly experienced R&D team with a successful track record of bringing new and differentiated products to market
  • Adds a best-in-class manufacturing facility with technologically complex formulation and alternative dosage form capabilities, including modified release solid orals and high potency formulations
  • Boehringer’s approximate 16.71% equity stake reflects a shared conviction in the future growth potential of the Hikma Group and allows Boehringer to focus on growing its global core businesses
  • Targeting Roxane revenue of $725 million to $775 million in 2017 and an EBITDA margin of around 35% over the medium-term
  • Expected to be accretive to adjusted2 earnings per share (“EPS”) in 2016 and very strongly accretive to adjusted EPS thereafter

Said Darwazah, Chief Executive Officer of Hikma commented:
“This transaction has significant strategic value for us, transforming our position and scale in the US generics market.  Roxane’s impressive portfolio, attractive pipeline and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth.  The acquisition also significantly expands our manufacturing capacity and technological capabilities.  Roxane has an excellent team of highly skilled employees and we are very excited about the value they will bring to Hikma.

I am also very pleased to be further strengthening our relationship with Boehringer Ingelheim, building on the acquisition of Bedford Laboratories which we made in 2014.  Their shared belief in the growth potential the Hikma Group is reflected in the equity stake that they are taking.”

Michael Raya, Chief Executive Officer of West-Ward, Hikma’s wholly-owned subsidiary in the US, said:
“Roxane is highly complementary to our existing US business.  Today we are a market leader in generic injectables with a large and increasingly differentiated product portfolio.  The acquisition of Roxane will significantly strengthen our non-injectables business, bringing a broad and diversified non-injectables portfolio, strong R&D capabilities and well-invested, state-of-the-art manufacturing facilities.  With this acquisition, we will transform our US operations, becoming the sixth largest US generics provider and ensuring we have the ability to continue our strong trajectory of growth.”

Professor Andreas Barner, Chairman of the Board of Managing Directors of Boehringer Ingelheim commented:
“This is a great opportunity for Roxane to continue to build on its position in the global generics market as part of a fast growing company that has a primary focus on generics.  Boehringer is confident that this transaction can better support the already successful Roxane business to realise its growth potential, domestically and internationally.  Through this agreement, Boehringer Ingelheim will have a vested interest in Hikma and its significant potential, while focusing on growing our global core businesses as a research-driven pharmaceutical company.”

Information on Roxane

Roxane is a well-established US specialty generics company that was founded in 1885 as The Columbus Pharmaceutical Company.  The business was purchased by Boehringer in 1978 at which point its name was changed to Roxane Laboratories, Inc.  Today, Roxane has 1,360 employees supporting the development, manufacturing and marketing of Roxane products. Roxane has a highly differentiated product portfolio, comprising 88 different product offerings with particular strength in immediate-release solids as well as nasal spray, liquid and sub-lingual tablet products.  Roxane has a strong pipeline of 89 projects in various stages of development, including 32 products which are currently filed with the FDA and 57 Paragraph IV products, and a consistent track-record of delivering new products to market.

The production of Roxane’s products occurs at its manufacturing site in Columbus, Ohio.  The facility is located on a modern 875,000 square foot site and has broad production capabilities across solid, liquid, dry powder inhaler and nasal spray dosage forms, as well as being able to handle high-potency products, technically complex formulations, and controlled substance drugs.  The facility has a strong track record in regulatory inspections.  Roxane has co-located its R&D and marketing functions at the same site to enable an integrated and responsive approach to new market opportunities.

The gross assets of Roxane as at 31 December 2014 amounted to US$967 million.  For the year ended 31 December 2014, profit before tax amounted to US$24 million. This information is extracted from unaudited, draft financial statements prepared in accordance with US GAAP.  A shareholder circular to be prepared by Hikma for the purposes of, among other things, seeking shareholder approval for the transaction will include financial information on Roxane for the three years ended 31 December 2014 prepared under IFRS and in accordance with Hikma’s accounting policies.  The Directors expect that the adjustments to the US GAAP gross assets and profit before tax will mainly arise in respect of policies for revenue recognition, inventories and fixed assets.

The results for the year ended 31 December 2014 were significantly impacted by a number of items that are not expected to recur, as well as ongoing costs in respect of Roxane’s investment in certain key products in its development pipeline which in 2014 amounted to $39 million.

Roxane has a strong and experienced management team with average industry experience of more than 25 years.  Hikma expects that the strength and depth of the Roxane team, with strong commercial, operational, regulatory and development expertise will significantly enhance its capabilities in the US and globally.

Background to and reasons for the acquisition

Hikma’s longstanding strategy has been, and remains, to deliver high quality, affordable generic and branded generic medicines to patients through the Company’s position as a leading global injectables manufacturer, a leading pharmaceutical manufacturer in MENA and emerging markets and a high quality provider of generics in the US.

In recent years, Hikma has rapidly expanded its presence in the US generics market.  Hikma is now a leading player in the US generic injectables market, reflecting strong organic growth and the successful acquisition and integration of the MSI and Bedford Laboratories businesses.  Hikma has also been investing in the development of its non-injectables business in the US, with a focus on expanding its capabilities in specialised and niche segments of the market.  The Board believes that the acquisition is a transformational step in delivering Hikma’s commitment to strengthen its non-injectable business in the US.  It also represents a compelling opportunity to further the Company’s six key strategic priorities of:

  • maximising portfolio opportunities;
  • strengthening and broadening the Company’s product portfolio;
  • maintaining high quality and efficient manufacturing facilities to maximise profitability;
  • investing for growth;
  • developing a highly skilled and effective workforce; and
  • ensuring sustainable long-term growth.

In particular, the Board believes that the acquisition represents a compelling strategic fit for Hikma for the following reasons:

Roxane transforms Hikma into a leader in the US generics market

The US generics market has attractive industry dynamics with growth drivers including continued regulatory pressures to control healthcare costs, an ageing population with increasing incidence of chronic illnesses and increasing acceptance among consumers and physicians of generics as equivalents of branded pharmaceuticals, as well as patent cliff and loss-of-exclusivity opportunities.  The independent industry data provider US Business Monitor International estimates that the US generic pharmaceuticals market will grow at a compound annual rate of 6 per cent. in the period 2014 to 2019.3

In 2014, Hikma’s Generics business, which sells non-injectable products in the US market, generated revenue of US$216 million and accounted for approximately 15 per cent. of Group revenue.  In recent years, the Company has been developing its growth strategy for this business and investing to build a strong pipeline focused on higher value, differentiated products in more niche segments of the US generics market.  The acquisition of Roxane will transform Hikma into the sixth4 largest company in US generics with good prospects for growth.

The addition of scale and product diversification to Hikma’s US Generics business will also position the Company to better serve its customers in the US, who are themselves consolidating and increasingly preferring suppliers with scale and a broad product offering.  In addition, the acquisition will enhance the overall diversification of the Hikma Group and create a more balanced business model.

Roxane has a highly differentiated product portfolio of existing marketed products

Roxane has a large portfolio of 88 marketed products and over 300 package sizes across seven dosage forms and across a broad range of therapeutic categories, including the high value areas of respiratory and oncology.  More than 80 per cent. of the portfolio has at least one layer of product differentiation,5 which creates a high value portfolio.  Roxane has a top-three market position in over 90 per cent. of its product portfolio.  In addition, approximately 75 per cent. of Roxane’s products have three or fewer competing products.

Whilst Hikma’s short-term focus will be on continuing to grow Roxane’s product portfolio and market share in the US, the Board also intends to take these products to the Company’s other markets over time, particularly Roxane’s portfolio of oncology products into the MENA region.

Roxane has a highly differentiated and robust pipeline with leading R&D capabilities which will help to ensure sustainable long-term growth

Roxane has a strong pipeline of 89 projects in various stages of development, which will support Hikma in driving sustainable long-term growth.  These include 32 products which are filed and currently pending approval from the FDA. The pipeline is focused on higher value, differentiated and niche products, including 57 Paragraph IV products, which are both filed and in development.  All of the pipeline products have at least one layer of product differentiation, with particularly differentiated capabilities in the high value areas of respiratory and oncology.

Roxane has 182 experienced and highly skilled employees in R&D, who have a proven track record of delivering new and differentiated products to market, with an average of eight successful new product launches annually since 2010. The acquisition will significantly strengthen Hikma’s existing R&D capabilities and is expected to support the continued development of a strong product pipeline to drive sustainable long-term growth.

Roxane will expand Hikma’s manufacturing capacity and capabilities

Roxane’s manufacturing plant in Columbus, Ohio, is a best-in-class facility that will bring new manufacturing technologies and capabilities to Hikma, including the ability to manufacture solids, liquids, nasal sprays and dry powder inhalers.  It also includes a standalone high containment facility, including product and analytical development areas, quality control laboratories, active pharmaceutical filling, manufacturing, packaging and a finished goods warehouse.  In 2014, the Roxane manufacturing facility produced 67 million packaged units.

Roxane has co-located its R&D and marketing functions at the same site to enable an integrated and responsive approach to new market opportunities.  With its ability to align capacity to support commercial demand, the facility supports an average of nine new product filings and eight new product launches annually.

Roxane has a strong track record with multiple global regulatory authorities

Roxane has a proven track record of strong performance in regulatory inspections.  Over the past 10 years there have been no critical findings or GMP warning letters issued to Roxane by any global regulatory body, including the US, Europe and eight other international agencies. This underpins the potential to commercialise the Roxane portfolio globally over time.

Roxane is a scarce asset which would be difficult for Hikma to replicate on the same scale and to the same level of quality

Roxane is a well-invested asset, with a rare combination of commercial expertise, excellence in manufacturing and specialised R&D capabilities.  Boehringer has invested significantly in Roxane since it acquired it in 1978 and has established it as a high quality operation with a long and impressive track record of differentiated product introductions and profitable growth.  This makes Roxane an excellent strategic fit for Hikma.  It will be highly complementary to the Company’s existing US business and the combination of Roxane and Hikma will serve to strengthen the Company in terms of adding greater scale, product breadth, pipeline and technological capabilities to its existing offering.

The acquisition strengthens Hikma’s relationship with Boehringer

In recent years, Hikma has developed a relationship with Boehringer.  This relationship was further strengthened with the acquisition by Hikma in July 2014 of the US generic injectables business, Bedford Laboratories, from Boehringer.

As part of the consideration, there will be an issuance of new Hikma shares to Boehringer, which will represent approximately 16.71 per cent. of Hikma’s issued share capital immediately following the admission to listing of the new Hikma shares at closing of the acquisition (assuming no issues or cancellations of Hikma shares after the date of this announcement).  This demonstrates their strong shared conviction in the longer-term potential of Hikma following the acquisition. It also enhances the potential for future projects across Hikma’s global businesses.  Boehringer’s investment in Hikma’s shares at a 13 per cent. premium to the current share price6 reflects their confidence in the value creation potential for them as long-term shareholders.

Financial effects of the acquisition

The Board expects Roxane to achieve revenue of $725 million to $775 million in 2017.  It expects that Roxane will achieve an EBITDA margin of approximately 35% over the medium-term.  Assuming closing of the acquisition in the fourth quarter of 2015, the acquisition is expected to be accretive to adjusted EPS in 2016, the first full year, and very strongly accretive to adjusted EPS from 2017 onwards.

It is currently intended that, following closing, the Board will maintain Hikma’s existing dividend policy, which targets a dividend of between 20 per cent. and 30 per cent. of the annual reported Group profits for the financial year after tax, with a long term average around the mid-point, assuming that there are sufficient distributable reserves available at the time.

Terms of the acquisition

Pursuant to a Stock Purchase Agreement (the “Stock Purchase Agreement”), dated 28 July 2015 between Boehringer, as Seller, and Hikma and Eurohealth (U.S.A.), Inc., together acting as buyers, Hikma has agreed, subject to the terms and conditions of the Stock Purchase Agreement, to acquire the entire issued and outstanding capital stock of Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc..

At closing of the acquisition, Hikma will pay to Boehringer gross consideration of US$1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer, subject to certain post-closing cash adjustments.  Hikma has also agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.

Closing of the acquisition is conditional upon, among other things, approval by Hikma’s shareholders of the acquisition and the expiration of any HSR Act antitrust waiting period.  Darhold Limited, the Company’s largest shareholder, has irrevocably undertaken to Boehringer to vote in favour of the resolutions necessary to implement the acquisition at the general meeting of Hikma’s shareholders.  The transaction is expected to close in the fourth quarter of 2015.

If the Stock Purchase Agreement is terminated as a result of a change of recommendation by Hikma’s Board of Directors that is not permitted by the Stock Purchase Agreement or failure of Hikma’s shareholders to approve the acquisition, Hikma will pay Boehringer a termination fee in the amount of US$52 million, representing just under 1% of Hikma’s market capitalisation as at the close of business on 27 July 2015.

The remaining terms of the Stock Purchase Agreement reflect terms customary for a transaction of this nature.

Alongside the Stock Purchase Agreement, Hikma will enter into a supply agreement for the continued manufacture of certain Boehringer products.

The Shareholders’ Agreement

The new Hikma shares will represent approximately 16.71 per cent. of Hikma’s issued share capital immediately following closing of the Acquisition (assuming no issues or cancellations of Hikma shares after the date of this announcement).

Hikma and Boehringer Ingelheim International GmbH (“BI”) will at closing enter into an agreement for the purpose of governing the ongoing relationship between Hikma and BI and its affiliates (the “Shareholders’ Agreement”).

The Shareholders’ Agreement will provide that:

  • subject to customary exceptions, BI and its affiliates will not be permitted to dispose of any Hikma shares at any time from closing until 1 January 2017. BI and its affiliates will be permitted to dispose of 24 million Hikma shares between 1 January 2017 and 1 January 2018, with the remainder being locked-up until after 1 January 2018;
  • Hikma will have a right of first refusal to acquire all or part of any Hikma shares that BI or its affiliates propose to dispose of from time to time, at a price equal to the average closing price of a Hikma share for the five business days prior to BI’s notification to Hikma of its intention to dispose of such shares.  BI and its affiliates will be permitted to dispose of any Hikma shares not purchased by Hikma in the wider market subject to orderly markets provisions;
  • BI and its affiliates will be subject to standstill provisions preventing it from, among other things, acquiring Hikma shares or making or announcing an offer for Hikma shares.  The standstill provisions will permit BI and its affiliates to hold up to 19.9% of Hikma’s total issued share capital from time to time.  They will cease to apply if: (1) Darhold Limited’s shareholding falls below 57 million Hikma shares or Darhold Limited ceases to be the largest shareholder in Hikma; or (2) a third party offeror announces, on a recommended basis, a firm intention to make an offer for the entire issued share capital of Hikma (in which case BI will be permitted to announce a firm intention to make an offer for the entire issued share capital of Hikma within 28 days); and
  • BI irrevocably agrees and undertakes not to exercise (and to procure its affiliates do not exercise) any voting rights attaching to Hikma shares held by BI and its affiliates at any Hikma shareholder meeting, to the extent they exceed 28.5 million voting rights (having been issued 40 million new Hikma shares at closing).  BI will also be permitted to exercise voting rights attached to Hikma shares acquired from third parties in accordance with the standstill provisions, up to a maximum of 7.5 million voting rights or 3.3% of the exercisable voting rights outstanding in Hikma at the relevant time.  In no circumstances will BI and its affiliates be permitted to exercise voting rights in excess of 15.8% of the exercisable voting rights outstanding in Hikma at the relevant time.

Financing

Hikma proposes to finance the acquisition through a combination of cash, utilisation of existing and new bank facilities, and through the issuance of 40 million new Hikma shares to Boehringer, which represents approximately 16.71 per cent. of Hikma’s issued share capital immediately following the admission to listing of the new shares at closing of the acquisition (assuming no issues or cancellations of Hikma shares after the date of this announcement).

Advisers

Centerview Partners and Citigroup Global Markets Limited acted as financial advisers to Hikma.  White & Case LLP and Slaughter and May acted as lead counsel to Hikma.

Morgan Stanley acted as financial advisers to Boeringher Ingelheim and Kirkland & Ellis acted as lead counsel.

Conference call details

A conference call for analysts and investors will be held on 28 July 2015 at 09:30 BST on UK and international dial in: +44 (0) 20 3003 2666 or UK toll free dial in:  0808 109 0700.  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.

--  ENDS  --

1 IMS Healthcare, MAT May 2015, adjusted to reflect recent M&A activity
2 Before amortisation (excluding software) and integration costs
3 United States Pharmaceuticals and Healthcare Report Q3 2015, BMI Research, www.bmiresearch.com
4 IMS Healthcare. MAT May 2015, adjusted to reflect recent M&A activity
5 Layers of differentiation include: paragraph IV first-to-file challenges, potent compounds (High Containment Operations products), schedule drugs I – V (DEA controlled products), products requiring complex bioequivalence studies, technically challenging dosage forms, API sourcing competency and technical expertise and Risk Evaluation and Mitigation Strategies (REMS)
6 Based on the closing share price of £20.80 on 27 July 2015

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Baker, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
Zeena Murad, Investor Relations Manager +44 (0) 20 7399 2768/
+44 7771 665277
FTI Consulting  
Ben Atwell/ Matthew Cole                 +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 2014, Hikma achieved revenues of US$1,489 million and profit attributable to shareholders of US$299 million.

About Boehringer Ingelheim
Boehringer Ingelheim Pharmaceuticals, Inc., based in Ridgefield, CT, is the largest US subsidiary of Boehringer Ingelheim Corporation.  Boehringer Ingelheim is one of the world’s 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, the company operates globally with 146 affiliates and more than 47,000 employees. Since its founding in 1885, the family-owned company has been committed to researching, developing, manufacturing and marketing novel treatments for human and veterinary medicine.  Boehringer Ingelheim is committed to improving lives and providing valuable services and support to patients and families.  Its employees create and engage in programs that strengthen their communities.  In 2014, Boehringer Ingelheim achieved net sales of approximately US$16.96 billion (€13.3 billion).  R&D expenditure corresponds to 19.9 percent of its net sales.  For more information visit www.us.boehringer-ingelheim.com.

Disclaimer
Centerview Partners is authorised and regulated by the Financial Conduct Authority.  Centerview Partners is acting exclusively for Hikma Pharmaceuticals PLC (“Hikma”) in connection with the matters set out in this announcement and the proposed acquisition.  Centerview Partners is not, and will not be, responsible to anyone other than Hikma for providing the protections afforded to its clients or for providing advice in relation to the proposed acquisition or any other matters referred to in this announcement.  Apart from the responsibilities and liabilities, if any, which may be imposed on it by the Financial Services and Markets Act 2000, Centerview accepts no responsibility whatsoever and makes no representation or warranty, express or implied, as to the contents of this announcement, including its accuracy, fairness, sufficiency, completeness or verification or for any other statement made or purported to be made by it, or on their behalf, in connection with Hikma or the acquisition, and nothing in this announcement is, or shall be relied upon as, a promise or representation in this respect, whether as to the past or the future.  Centerview Partners accordingly disclaims to the fullest extent permitted by law all and any responsibility and liability whether arising in tort, contract or otherwise (save as referred to above) which it might otherwise have in respect of this announcement or any such statement.

Citi Global Markets Limited, which is authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority, is acting exclusively for Hikma and no one else in connection with the proposed acquisition and will not be responsible to anyone other than Hikma for providing the protections afforded to its clients, for providing advice in relation to the proposed acquisition or in relation to the contents of this announcement or any transaction or any other matters referred to herein.

This announcement does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe, for, underwrite or otherwise acquire, any securities of Hikma or any member of its group in any jurisdiction or an inducement to enter into investment activity.

This announcement is not directed at, or intended for distribution to or use by: (i) any person or entity outside the United Kingdom; or (ii) any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing.

The securities of Hikma have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold, resold or otherwise transferred, directly or indirectly, in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities law of any state or other jurisdiction of the United States. There will be no public offering of any securities of Hikma in the United States.

This announcement contains or incorporates by reference "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "aims", "plans", "predicts", "may", "will", "seeks", "could", "would", "shall" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the Board concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industries in which Hikma operates.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future or are beyond Hikma’s control.  Forward-looking statements are not guarantees of future performance and are based on one or more assumptions.  The Company's actual results of operations and financial condition and the development of the industries in which Hikma operates may differ materially from those suggested by the forward-looking statements contained in this announcement.  In addition, even if the Company's actual results of operations, financial condition and the development of the industries in which Hikma operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.

The forward-looking statements contained in this announcement speak only as of the date of this announcement. The Company and the Board expressly disclaim any obligations or undertaking to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable law, the Prospectus Rules, the Listing Rules, the London Stock Exchange Rules or the Disclosure Rules and Transparency Rules.

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Corporate

15 July 2015

Hikma receives approval for thiotepa injection in the US

London, 15 July 2015 Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces it has it has received approval from the U.S. Food and Drug Administration (“FDA”) for its supplemental Abbreviated New Drug Application (“sANDA”) for thiotepa for injection USP, 15mg/vial.

London, 15 July 2015 Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces it has it has received approval from the U.S. Food and Drug Administration (“FDA”) for its supplemental Abbreviated New Drug Application (“sANDA”) for thiotepa for injection USP, 15mg/vial.

Thiotepa is indicated for the palliation of a wide variety of neoplastic diseases, with the most consistent results seen in tumors related to adenocarcinoma of the breast and ovary. It will be the second product previously marketed by Bedford Laboratories to be launched by Hikma in the United States.  Thiotepa is currently on the FDA’s Drug Shortages list and Hikma has the only approved active US ANDA.

Said Darwazah, Chairman and CEO of Hikma said, “We are making good progress with the transfer of the Bedford products to our manufacturing facilities, leveraging our strong R&D, regulatory and manufacturing capabilities. Thiotepa is used in the treatment of a variety of cancers.  It has been on shortage in the US for several years and we are very pleased to be able to provide a resolution to this critical situation."

-- 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
Zeena Murad, Investor Relations Manager +44 (0)20 7399 2768/
+44 7771 665277
FTI Consulting
Ben Atwell/ Matthew Cole +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: “Injectables”, “Branded” and “Generics”, based principally in the United States, the Middle East and North Africa ("MENA") and Europe. In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $299 million.

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Product

05 July 2015

Hikma Pharmaceuticals supports the free Open Days at the Children’s Museum Jordan

Amman, 5 July 2015 – Hikma Pharmaceuticals, the fast growing multinational pharmaceutical group, signed a partnership agreement on Wednesday July 1st supporting the “Open Days” program which is part of the “Museum for All” initiative. As part of its objectives to be accessible to as many children as possible, this initiative provides either free or subsidized access through different platforms available to the Jordanian community. This support comes from Hikma Pharmaceuticals’ belief in the Children’s Museum Jordan’s educational mission and the important role it plays in spreading the experience of hands-on learning.

Amman, 5 July 2015 – Hikma Pharmaceuticals, the fast growing multinational pharmaceutical group, signed a partnership agreement on Wednesday July 1st supporting the “Open Days” program which is part of the “Museum for All” initiative. As part of its objectives to be accessible to as many children as possible, this initiative provides either free or subsidized access through different platforms available to the Jordanian community. This support comes from Hikma Pharmaceuticals’ belief in the Children’s Museum Jordan’s educational mission and the important role it plays in spreading the experience of hands-on learning.

Hana Darwazeh Ramadan, Hikma’s Vice President of Corporate Communication said, “We are very pleased to take our partnership with the Children’s Museum Jordan to the next level by supporting the Open Days. We believe in the goals of this platform which focuses on education in an interactive and lively manner in regards to the children and which is aligned with our goals.” Ramadan asserted that the company’s corporate responsibility is concerned with supporting local communities and creating a better future for today’s children.

“Our partnership with Hikma Pharmaceuticals is a well-established partnership, and this agreement is an extension of our partnership to support UNRWA schools’ visit program. We are very proud that a prestigious national corporation such as Hikma Pharmaceuticals is putting so much effort in social responsibility towards the Jordanian local society and its children” said the Children’s Museum Jordan’s Director, Sawsan Dalaq.

The “Open Day” program has provided free access to the Museum to over 177,000 visitors since it was launched in 2010. The Open Days are held on the first Friday of every month and are available to all families and their children wishing to visit the Children Museum Jordan.

----- ENDS -----

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CR

04 July 2015

Hikma Pharmaceuticals Launches Ramadan Community Campaign

Amman, July 2015 – As part of its corporate responsibility (CR) activities for the month of Ramadan, Hikma Pharmaceuticals organized a three-week Clothes Drive with the Charity Clothing Bank (CCB). Hikma employees also volunteered with Tkiyet Um Ali, an NGO that aims to alleviate hunger among underprivileged families on Tuesday 7 July, 2015.

Amman, July 2015 – As part of its corporate responsibility (CR) activities for the month of Ramadan, Hikma Pharmaceuticals organized a three-week Clothes Drive with the Charity Clothing Bank (CCB). Hikma employees also volunteered with Tkiyet Um Ali, an NGO that aims to alleviate hunger among underprivileged families on Tuesday 7 July, 2015.

The Charity Clothing Bank (CCB) is part of the Jordan Hashemite Charity Organization for Relief and Development (JHCO) initiative. Supported by Hikma’s longstanding partnership with the JHCO, the Clothes Drive initiative works to assist less fortunate community members by providing them with clothes throughout Ramadan. Hikma placed collection boxes at each of its Amman, Sahab and Salt locations, whereby for the first three weeks of Ramadan, the CCB collected employees’ donated clothes every Thursday for distribution among families in need. Additionally, more than 40 employees joined TUA in preparing 50 food parcels, distributing goodwill packages and serving meals to underprivileged families residing in the areas of Downtown Amman and Al Qastal, as well as at Rawabi Al-Salt Charitable Society.

“Over the years, Hikma has built an effective CR platform through which it directly supports and gives back to the local communities in which it operates,” commented Hana Darwazeh Ramadan, Vice President of Corporate Communication at Hikma. “The work of both the JHCO and Tkiyet Um Ali corresponds with our goal to promote social solidarity, which is why they deserve our full support. Not to mention, by engaging our employees in charitable acts, we are able to foster a culture of belonging amongst them, reflecting the spirit of giving during the month of Ramadan.”

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26 June 2015

Hikma appoints Kofi Amegashie to head its sub-Saharan Africa unit

London, 26 June 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces the appointment of Kofi Amegashie as head of its newly created sub-Saharan Africa business.  Kofi will lead Hikma’s expansion into this region with the aim of replicating Hikma’s brand success in the Middle East and North Africa and establishing a strong foot hold in East, West and Francophone Africa.

London, 26 June 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces the appointment of Kofi Amegashie as head of its newly created sub-Saharan Africa business.  Kofi will lead Hikma’s expansion into this region with the aim of replicating Hikma’s brand success in the Middle East and North Africa and establishing a strong foot hold in East, West and Francophone Africa.

Kofi is a chemical engineer by training, with more than 25 years of experience with multinational organisations, including the Chevron Corporation, the International Finance Corporation, and the Coca-Cola Company, in various commercial and strategic roles in Asia, Africa, Europe, and North America.  He was most recently Managing Director – Africa, at the Johannesburg-listed pharmaceutical company, Adcock Ingram Healthcare Pty. Ltd., with responsibility for all business operations in Africa, outside of South Africa.

“Kofi brings sound consumer marketing, strategic development and general management experience and we are delighted to welcome him to the Hikma team.  His appointment comes at an opportune time for Hikma, as we are looking to establish a strong presence in a number of sub-Saharan markets”, said Hikma Executive Vice Chairman and Chief Executive of MENA and Emerging Markets, Mazen Darwazah.

Kofi added, "I am very impressed by Hikma's portfolio of products and its potential to meet the demands of the sub-Saharan market.  The region offers attractive growth opportunities across the varied markets, which we can capture by building profitable hub country businesses and replicating them across sub-regions.  Hikma is an innovative organisation and it is a great privilege to be leading its sub-Saharan expansion drive."


Kofi is a Sloan Fellow with a Master of Science degree in Management from the London Business School and holds a Bachelor of Science degree from the School of Engineering at Exeter University in the United Kingdom.  He is also a Non-Executive Director of the US-based international non-profit organisation, PATH (www.path.org).

-- ENDS --

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Baker, Deputy Director of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
Zeena Murad, Investor Relations Manager +44 (0) 20 7399 2768/
+44 7771 665277
FTI Consulting  
Ben Atwell/ Matthew Cole                 +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: “Injectables”, “Branded” and “Generics”, based principally in the United States, the Middle East and North Africa ("MENA") and Europe. In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $299 million. 

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18 May 2015

Hikma Founder and Honorary Life President Samih Darwazah passes away

London, 18 May 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceuticals company, is deeply saddened to announce that Samih Darwazah, Hikma’s Founder and Honorary Life President, passed away peacefully on Friday, 15 May, in London at the age of 85.

London, 18 May 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceuticals company, is deeply saddened to announce that Samih Darwazah, Hikma’s Founder and Honorary Life President, passed away peacefully on Friday, 15 May, in London at the age of 85. Mr. Darwazah was a politician, a philanthropist, an entrepreneur and a business leader that founded Hikma, a company that recently entered the FTSE100 index and now employs 7,000 people bringing affordable medicines to the world.

Mr. Darwazah founded Hikma in 1978 in Amman, Jordan.  His vision was to bring high quality and affordable medicines to the world.  With the help of his children, who joined the business in its early days, Hikma grew from a small factory in Jordan into the largest regional supplier of pharmaceuticals in the Middle East and North Africa (“MENA”) region.  The company also expanded outside the MENA region, establishing successful operations in Europe and the United States.  Today Hikma operates in around 50 countries, selling a broad range of branded generics, generic injectables, non-injectable generics and in-licensed patented products.  In 2005, the company floated on the London Stock Exchange and in March 2015 it entered the FTSE 100 index.

Mr. Darwazah was born in Nablus in 1930. One of several children, his family lived in Jaffa, where his father was a merchant, for most of his childhood. In 1948, the Darwazah family left their ancestral home and moved to Jordan.  Mr. Darwazah went to study at the American University of Beirut (“AUB”), where he met and married his wife, Samira, a fellow AUB student.  After obtaining a B.Sc. Degree in Pharmacy in 1954 and working for a few years in pharmacy in Jordan and Kuwait, Mr. Darwazah was offered a Fulbright Scholarship and went to study at the St. Louis College of Pharmacy in Saint Louis, Missouri.

A couple of months after receiving his master’s degree in Industrial Pharmacy, Mr. Darwazah signed on with Eli Lilly. He worked for the company from 1964 to 1976, first in the United States then in various positions in the Middle East marketing division. At the age of 48, after 12 years working for Eli Lilly and with extensive experience in marketing and management, Mr. Darwazah decided to return to Jordan and establish his own company – and Hikma was born.

As an entrepreneur and business leader, Mr. Darwazah became an influential figure in Jordan, creating jobs and developing a vibrant local pharmaceutical industry. He believed strongly that he had a responsibility to invest in local communities and he became a strong advocate of corporate responsibility.  In 1995, Mr. Darwazah was invited by Jordan’s Prince Zeid Ben-Shaker to serve as Minister of Energy and Mineral Resources to the late King Hussein. In later years, he was also a senator, served on the Advisory Economic Council to His Majesty the King of Jordan, and founded the Jordanian Trade Association. As a firm supporter of education and an advocate for women’s rights, Mr. Darwazah established a school for girls in Al Shoubak in Jordan in 2009, amongst many other philanthropic endeavours.

In recognition of Mr. Darwazah’s remarkable achievements as a businessman, Ernst and Young named him Middle East Entrepreneur of the Year in 2007. He was also the recipient of five honorary doctorates in recognition of his lifetime achievements – from The St. Louis College of Pharmacy, the Lebanese American University, Birzeit University, the American University of Beirut and the Jordan University of Science and Technology.

In addition to Mr. Darwazah’s significant professional achievements, he will perhaps be best remembered by all who knew him as someone who valued family above all else.  He surrounded himself with his four children and his eleven grandchildren.  The supportive “family” culture at Hikma thrives today, ten years after becoming a public company.  He will be sorely missed and always remembered by all who knew him.

Condolences can be sent to condolences@hikma.com

--  ENDS  --

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Baker, Deputy Head of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
Zeena Murad, Investor Relations Manager +44 (0) 20 7399 2768/
+44 7771 665277
FTI Consulting  
Ben Atwell/ Matthew Cole                 +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: “Injectables”, “Branded” and “Generics”, based principally in the United States, the Middle East and North Africa ("MENA") and Europe.  In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $278 million. 

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14 May 2015

Hikma AGM Trading Update

London, 14 May 2015 – Hikma Pharmaceuticals PLC (“Hikma” or “the Group”)(LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), (rated Ba1 Moody’s / BB+ S&P, both stable), the fast growing multinational pharmaceutical group, will hold its Annual General Meeting today where the following statement will be made regarding its current trading.

London, 14 May 2015 – Hikma Pharmaceuticals PLC ("Hikma” or "the Group”)(LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), (rated Ba1 Moody’s / BB+ S&P, both stable), the fast growing multinational pharmaceutical group, will hold its Annual General Meeting today where the following statement will be made regarding its current trading.  

Hikma has made a good start to the year and we are very pleased to reiterate our guidance for 2015 for the Group overall and for each of our business segments.

Group
We continue to expect full year Group revenue growth of around 6% in constant currency, following an extremely strong year in 2014, in which profit attributable to shareholders increased by 30%.  On a reported basis, we expect full year Group revenue growth of around 2%, reflecting foreign exchange rate movements in the year to date.  For the first half, we expect Group revenue in constant currency to be broadly in line with the same period last year.

Injectables
Our US Injectables business is performing well, with strong sales of certain products offsetting increased competition on other products.  We are making good progress transferring the products acquired from Bedford Laboratories in 2014 to our manufacturing facilities in New Jersey, Germany and Portugal and we recently launched the first of these products, CAFCIT® Injection (caffeine citrate injection, USP) 60mg/3mL (20mg/mL). Management changes in our MENA Injectables business are delivering good results, especially in Algeria and Saudi Arabia, and in Europe revenue is stable.  Following the excellent performance in 2014, we remain on track to sustain 2015 global Injectables revenue at the same level as 2014 for both the half year and the full year, with a robust adjusted operating margin of around 35% after the dilution from Bedford R&D costs. 

Branded
Our Branded business is performing well.  Growth in the year to date is being driven by a recovery in Algeria and good demand in Saudi Arabia and the other GCC markets.  We expect continued growth in Branded sales across our markets, driven by new product launches and our focus on enhancing our product mix.  We continue to expect full year Branded revenue growth in the low teens and an improvement in adjusted operating margin of around 200 basis points, on a constant currency basis.  Taking into account exchange rate movements since the beginning of 2015, and assuming these rates prevail, we continue to expect reported Branded revenue growth in the high single digits and a slight improvement in adjusted operating margin.  As in previous years, we expect revenue to be stronger in the second half, reflecting the usual seasonality of this business. 

Generics
We are seeing strong demand for the legacy products in our Generics business and are benefitting from the contribution of certain market opportunities, albeit at a much lower level than in the previous two years, as anticipated.  We continue to expect sales from recent product launches to accelerate in the second half of the year and are therefore reiterating our guidance for full year Generics revenue of around $200 million in 2015.

Financing
We continue to have a very strong balance sheet, which gives us the financial capacity to pursue acquisition opportunities across our businesses.  On 1 April 2015, we further strengthened our financing capabilities when we successfully completed our first bond issuance – a $500 million 4.25% eurobond due April 2020.  The proceeds will be used to refinance existing debt and for general corporate purposes.  We now expect interest expense in 2015 will be around $54 million, up from our previous guidance of around $40 million, taking into account incremental interest costs and associated transaction fees.

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

"Hikma has made a good start to the year. We have performed well in each of our businesses following an extremely strong 2014, and we are pleased to be reiterating our 2015 guidance for the Group overall and for each of our business segments.

Over the longer-term, we are confident in our ability to continue to drive strong growth across the Hikma Group. By strengthening our operations in the MENA region, enhancing and expanding our global Injectables business and developing our non-injectable Generics portfolio in the US, we are building an extremely robust set of businesses that are uniquely positioned to capture a range of attractive future growth opportunities."

We will announce our interim results for the six months to 30 June 2015 on 19 August 2015.

-- ENDS --

Enquiries

Hikma Pharmaceuticals PLC  
Susan Ringdal, VP Corporate Strategy and Investor Relations +44 (0)20 7399 2760/
+44 7776 477050
Lucinda Baker, Deputy Head of Investor Relations +44 (0)20 7399 2765/
+44 7818 060211
Zeena Murad, Investor Relations Manager +44 (0) 20 7399 2768/
+44 7771 665277
FTI Consulting  
Ben Atwell/ Matthew Cole                 +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: "Injectables”, "Branded” and "Generics”, based principally in the United States, the Middle East and North Africa ("MENA") and Europe.  In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $278 million.

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12 May 2015

Hikma launches caffeine citrate injection, commercialising the first of the Bedford products

London, 12 May 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces it has launched CAFCIT® Injection (caffeine citrate injection, USP) 60mg/3mL (20mg/mL). CAFCIT® is indicated for the short-term treatment of apnea of prematurity in infants between 28 and 33 weeks gestational age.

London, 12 May 2015 – Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group, today announces it has launched CAFCIT® Injection (caffeine citrate injection, USP) 60mg/3mL (20mg/mL).  CAFCIT® is indicated for the short-term treatment of apnea of prematurity in infants between 28 and 33 weeks gestational age.

Said Darwazah, Chairman and CEO of Hikma said, “This is our first launch from the Bedford portfolio acquired last year.  We are making good progress in the transfer of the Bedford products to our manufacturing facilities and this launch demonstrates our strong R&D, regulatory and manufacturing capabilities."

According to IMS Health, sales of caffeine citrate injection in the US market were approximately $7.6 million for the 12 months ending March 2015.

-- 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
Zeena Murad, Investor Relations Manager +44 (0)20 7399 2768/
+44 7771 665277
FTI Consulting
Ben Atwell/ Matthew Cole +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: “Injectables”, “Branded” and “Generics”, based principally in the United States, the Middle East and North Africa ("MENA") and Europe.  In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $299 million.

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