Hikma to Acquire Custopharm for $ 425 Million to Boost US Injectables Business
Hikma Pharmaceuticals has agreed to acquire US company Custopharm from Water Street Healthcare Partners in a $ 425 million deal to strengthen its injectables business in the country.
With a distinguished product portfolio and research and development (R&D) pipeline, Custopharm currently sells its products in the United States through its business arm, Leucadia Pharmaceuticals.
Custopharm, which partnered with Water Street in 2015, has obtained 13 US Food and Drug Administration (FDA) approvals since then.
The approvals include four first Abbreviated New Drug Application (ANDA) approvals, including one with the designation of Competitive Generic Therapy (CGT) and a new NDA 505 (b) (2) approval.
Under the agreement, Custopharm will receive preliminary cash consideration of $ 375 million on a debt-free and cashless basis from Hikma.
Hikma will finance the initial counterpart from its existing cash resources.
Custopharm is also eligible for additional contingent consideration of $ 50 million to achieve specific Hikma business milestones.
Hikma added that the transaction, which complements its injectables portfolio and pipeline, will add 13 approved products and other pipeline products.
The acquisition of Custopharm will strengthen Hikma’s R&D expertise by adding a qualified scientific team of dedicated R&D specialists with an established ability to create and market complex sterile injectable products.
In addition, through the acquisition, Hikma will add a state-of-the-art R&D laboratory in California, United States.
Hikma Pharmaceuticals CEO Siggi Olafsson said, “This acquisition provides Hikma with an attractive opportunity to further strengthen our injectables business in the United States by adding an attractive and profitable portfolio of commercialized products and an exciting pipeline of opportunities. futures.
“Custopharm is an accomplished operator in the US injectables market with a first-rate scientific team and strong regulatory experience.
“This acquisition is very complementary to our existing activities and adds differentiated and high quality growth potential. ”
Closing of the acquisition is subject to the approval of the United States Federal Trade Commission.
In May 2019, Hikma launched its 100th injectable drug in the United States. Available in doses of 750 mg, 5 g, and 10 g, the drug fights infections caused by vancomycin-sensitive organisms that are resistant to other antimicrobial drugs.