Hikma Pharmaceuticals, PLC has announced in a press release that it agreed to acquire Roxane Laboratories, Inc. and Boehringer Ingelheim Roxane, Inc. from Boehringer Ingelheim for $1.8 billion in cash.
The agreement enhances Hikma's position in the U.S. generics market, establishing it as the sixth largest generic company, in terms of revenue, in the country.
"This transaction has significant strategic value for us, transforming our position and scale in the US generics market," commented Said Darwazah, CEO of Hikma, in the press release.
"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," he added.
The deal will significantly add to Hikma's portfolio in the U.S., as Roxane Laboratories brings Hikma 88 different products for a specific and niche segment of the market.
The products would include "oncology, respiratory, extended release and controlled substances," according to the press release.
The deal also strengthens Hikma's relationship with Boehringer, following its acquisition of Bedford Laboratories, the generic injectable drug business of Boehringer, in 2014.
"Their shared belief in the growth potential of the Hikma Group is reflected in the equity stake that they are taking," Darwazah said in the press release.
Professor Andreas Barner, Chairman of the Board of Managing Directors of Boehringer Ingelheim, agreed with Darwazah and voiced his confidence on Hikma.
In the report, Barner said that the transaction would further provide support for the growth potential of Roxane's business 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," he added,
Reuters reports that Hikma's acquisition is the latest among several transactions in the generic drug market.
The most recent transaction is Teva Pharmaceutical Industries' acquisition of Allergan's generic drug business for $40.5 billion.
