Hikma Strikes $300 Million Injectables Deal

Hikma Pharmaceuticals announced last week that it will acquire assets of Bedford Laboratories, Ben Venue's U.S. generic injectables business. Details of the agreement include a total consideration of up to $300 million, including a $225 million upfront payment and a further $75 million in contingent cash payments dependent on achievement of performance-related milestones, over a period of five years.

Hikma also entered into an exclusivity arrangement with the Boehringer Ingelheim Group, to acquire all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio - considered "one of the largest sterile injectable manufacturing sites in the world," according to Hikma.

Ben Venue had plans in place since October 2013 to halt production, as it said that the resources needed to sustain cGMP were not sustainable. Since then, the company has been "exploring strategic options" for Bedford Laboratories to ensure the company’s drugs continued to reach patients, Reuters reported.

This new acquisition will not only help address critical supply shortages of certain meds in the U.S. market, but will also add a large oncology portfolio along with a variety of niche and differentiated products to Hikma’s portfolio — including 27 products, of which 16 are filed and pending approval from the FDA. Hikma welcomes the addition of a unique R&D pipeline, as well as a host of experienced R&D and operational teams to their business, to strengthen the company's position as a leading generic injectables company in the U.S.

"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," Darwazah, CEO of Hikma commented. "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, U.S. Country Managing Director, President and CEO of Boehringer Ingelheim USA Corporation, and Chairman, Ben Venue Board of Directors supports this strategic plan, adding, "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."

In 2013, Hikma says its global injectables business generated $536 million in revenue. The value of the dynamic U.S. generic injectables market is estimated at around $7.6 billion and offers significant future growth opportunities.