Hikma Purchases BI’s Generics Unit

Hikma Pharmaceuticals is purchasing Boehringer Ingelheim’s Roxane generics unit for $2.65 billion, in a deal that will make the Jordanian drugmaker the sixth largest provider of generics by revenue in the U.S.

According to the agreement announced last Tuesday, Hikma will pay $1.18 billion in cash and issue 40 million shares of stock to acquire the German drugmaker’s Roxane Laboratories and Boehringer Ingelheim Roxane. The deal also includes milestone payments of up to $125 million.

Roxane manufactures 88 products including oncology, respiratory and extended-release drugs and controlled substances. The company also has 89 drugs in various stages of development, including 57 Paragraph IV products, of which 13 are first-to-file opportunities.

Hikma has been investing in noninjectables businesses to supplement its injectables portfolio. Pointing to Roxane’s 88 marketed products, Hikma says 90 percent hold a top-three market position and about 75 percent have three or fewer competing products. — John Bechtel