REG - Hikma Pharmaceutical - Hikma acquires Xellia’s assets

Hikma PharmaceuticalsAnnouncement

17/06/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240617:nRSQ6605Sa&default-theme=true

RNS Number : 6605S  Hikma Pharmaceuticals Plc  17 June 2024

Hikma acquires Xellia's differentiated portfolio and enhances Injectables
pipeline, manufacturing capabilities and R&D

 

London, 17 June 2024 - Hikma Pharmaceuticals PLC (Hikma, Group), the
multinational pharmaceutical group, today announces that it has agreed with
Xellia Pharmaceuticals, a Copenhagen based specialty company focusing on
providing anti-infective treatments and other critical care therapies, to
acquire parts of its US finished dosage form (FDF) business and assets,
including a commercial portfolio and pipeline of differentiated products, a
manufacturing facility in Cleveland, Ohio, sales and marketing capabilities,
and an R&D center in Zagreb, Croatia. Hikma will pay a cash consideration
of $135 million, and an additional contingent consideration of up to $50
million, subject to the achievement of certain regulatory and commercial
milestones.

 

Transaction highlights and strategic rationale:

 

·    Supports the long-term growth of Hikma's Injectables business

·    Diversifies and enriches Hikma's US injectables portfolio and
pipeline, adding a range of ready-to-use (RTU) products, including Vanco
Ready(®), which was launched in 2019

·    Significantly expands Hikma's high-quality manufacturing capacity.
The Cleveland facility is spread over 24 acres and, following a
two-to-three-year enhancement project, will significantly increase Hikma's
injectables capacity to accommodate a growing US portfolio, with potential to
leverage the facility for contract manufacturing

·    Adds complex manufacturing technologies, including aseptic premix bag
filling capabilities and a significant increase in lyophilization capacity

·    Enhances Hikma's R&D capabilities. The R&D center in Zagreb,
Croatia adds an experienced team of R&D professionals with the track
record and expertise to develop complex finished dosage forms. Hikma will
leverage this expertise across its global injectables markets

·    Neutral to Group core earnings in the first 12 months following
closing and accretive thereafter, with meaningful longer-term benefits. Upon
closing, the current Xellia in-market products will immediately contribute
around $75 million revenue on an annualized basis.

 

Acquired assets:

 

The acquisition will add eight approved and marketed injectable products to
Hikma's US portfolio and 11 pipeline products. The Xellia commercial portfolio
comprises the ready-to-use formulation, Vanco Ready(®) (vancomycin), launched
in 2019, and other anti-infectives. These products are currently manufactured
by a third-party and Hikma will maintain these manufacturing contracts while
it upgrades the Cleveland facility, with the goal of moving production of
these products in-house.

 

The Cleveland site offers end-to-end capabilities to develop, manufacture,
pack and distribute lyophilized vials and aseptically filled ready-to-use IV
bag products. Hikma intends to undertake a series of investments to enhance
productivity and efficiency through the addition of automation, equipment, and
updated processes. These investments will be captured within Hikma's existing
annual capital expenditure plan. Hikma expects the facility to be operational
within two to three years.

 

Hikma will also be acquiring Xellia's R&D center in Zagreb, Croatia,
including a large team of professionals.  This center will bring a range of
expertise including developing innovative and generic products and finished
dosage forms, primarily in premix RTU bags.

 

Riad Mishlawi, CEO commented:

 

"Hikma has grown to become a top-three US supplier of sterile injectable
medicines thanks to our strong record of successfully making value-enhancing
acquisitions like this one. This acquisition will add significant scale to our
US operations and will enhance our US injectable manufacturing capabilities
and portfolio by adding complex technologies. I am confident that this
transaction will deliver significant future value to our Injectables business,
supporting growth over the medium term."

 

Dr Bill Larkins, President of Hikma Injectables commented:

 

"This acquisition strengthens our Injectables business, and I am particularly
excited by the potential to further develop our pipeline with the talented and
experienced team at the Zagreb R&D facility. The combination of Xellia's
assets with our quality manufacturing expertise and strong commercial
capabilities puts us in an even stronger position to serve the growing needs
of hospitals and patients."

 

The transaction is subject to US Federal Trade Commission approval. Hikma's
2024 guidance remains unchanged.

 

Further information:

Hikma will hold a live Q&A call for analysts at 11:00am BST. A recording
and transcript will be made available on the Company's website.

 

To join the call please dial:

United Kingdom (Local): +44 20 3936 2999

United Kingdom (Toll-Free): +44 800 358 1035
Global Dial-In Numbers
(https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Furldefense.proofpoint.com%2Fv2%2Furl%3Fu%3Dhttps-3A__www.netroadshow.com_conferencing_global-2Dnumbers-3FconfId-3D66755%26d%3DDwMFaQ%26c%3DbZnDpUh0cTwskH9nIvyseq2tJ5dkOfcF56epRyP8Xxo%26r%3Dm4BT5mC7n_3qau9Ro8z6rYjN5rMd2WAzlM2ubzGxOw8%26m%3D-POKNZpYSHsEsgOyly2QihUaOrBF2Hjw_a0FLFO59zbBUR_c0ipsyXyN01NvMgzf%26s%3DdawzW6uHT0q_QPOhBfALpQiOTFYK_C7xLHW7QLKI9Vc%26e%3D&data=05%7C02%7CLKalisse%40Hikma.com%7Ca2b103b0f23b4947894908dc8a03c8c6%7C178c1a723d3c40afbaa754615303bcdc%7C0%7C0%7C638536996581289818%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=uyeNzh%2FCQak%2B3CnbyX7Yd0gHNJtKawwsfGCtk3CIRl8%3D&reserved=0)

Access Code: 446636

 

 

--  ENDS -

 

Enquiries:

Hikma
(Investors)

 Susan Ringdal                                                                                    +44 (0)20 7399 2760/ +44 (0)7776 477050

 EVP, Strategic Planning and Global Affairs
 Guy Featherstone                                                                                 +44 (0)20 3892 4389/ +44 (0)7795 896738

 Director, Investor Relations
 Layan Kalisse                                                                                    +44 (0)20 7399 2788/ +44 (0)7970 709912

 Senior Associate, Investor Relations

 Press

 Teneo - Doug Campbell / Rob Yates

                                                                                                  +44 (0)7753 136628/ +44 (0)7715 375443
 Hikma - Steve Weiss                                                                              +1-732-788-8279

 

 

About Hikma

Hikma Pharmaceuticals PLC (LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY)
(LEI:549300BNS685UXH4JI75) (rated BBB-/stable S&P and BBB-/positive Fitch)

 

Hikma helps put better health within reach every day for millions of people
around the world. For more than 45 years, we've been creating high-quality
medicines and making them accessible to the people who need them.
Headquartered in the UK, we are a global company with a local presence across
North America, the Middle East and North Africa (MENA) and Europe, and we use
our unique insight and expertise to transform cutting-edge science into
innovative solutions that transform people's lives. We're committed to our
customers, and the people they care for, and by thinking creatively and acting
practically, we provide them with a broad range of branded and non-branded
generic medicines. Together, our 9,100 colleagues are helping to shape a
healthier world that enriches all our communities. We are a leading licensing
partner, and through our venture capital arm, are helping bring innovative
health technologies to people around the world. For more information, please
visit: www.hikma.com (http://www.hikma.com)

©2024 Hikma Pharmaceuticals PLC. All rights reserved.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQUBOVRSAUNARR