- Hikma Pharmaceuticals completes Xellia acquisition
- Acquisition valued at $135 million, with potential for $50 million in contingent payments.
- Expands Hikma’s US injectables portfolio and manufacturing capacity.
- Neutral to core earnings initially, with long-term benefits expected.
Tue Sep 10 05:05:09 -0000 2024 UTC– London-based Hikma Pharmaceuticals has completed the acquisition of Xellia. The company said the PLC now owns Xellia Pharmaceuticals’ US finished dosage form (FDF) business.
Cleared Under US Antitrust Laws
The growth in demand for injectables, driven by biologics and complex generics, is well-documented in industry reports. Hikma’s strategic move, cleared under US antitrust laws, includes a robust commercial portfolio, a Cleveland-based manufacturing facility, and an R&D center in Zagreb, Croatia.
$135 Million Valuation
The $135 million transaction, which may increase by $50 million based on future milestones, significantly strengthens Hikma’s injectables business in the US by diversifying its product offerings and enhancing manufacturing capabilities.
Neutral to core earnings
The acquisition is expected to be neutral to Hikma’s core earnings for the first year post-closing, with projections indicating accretive returns thereafter. This expansion supports Hikma’s long-term strategy of growing its presence in the US market and advancing its portfolio of complex injectable products.
Zagreb’s R&D Center
Zagreb’s R&D Center is a crucial addition to Hikma’s global operations, serving as a hub for innovation in the development of complex injectable formulations. This facility is expected to enhance Hikma’s capabilities in creating advanced pharmaceutical products, including biosimilars and other cutting-edge therapies that require specialized manufacturing techniques.
The expertise in Zagreb will allow Hikma to accelerate the introduction of new products to the market, aligning with the company’s focus on expanding its portfolio of high-value, differentiated products.
The Global Injectables Market
The Global Injectables Market is experiencing significant growth, driven by the rising demand for biologics, vaccines, and complex generic medicines. Injectables, known for their rapid onset of action and high bioavailability, are increasingly preferred for the treatment of chronic conditions such as diabetes, cancer, and autoimmune diseases. Hikma’s expanded portfolio and increased manufacturing capacity position the company to meet the growing needs of healthcare providers and patients in the US and globally.
Hikma’s Strategic Vision
While the step is likely to remain neutral to net profit, Hikma’s Strategic Vision includes leveraging its newly acquired assets to drive innovation and efficiency across its operations. By integrating Xellia’s US business with its own, Hikma aims to create a more resilient and agile supply chain, ensuring consistent delivery of high-quality injectable products to the market. This acquisition marks a significant step in Hikma’s ongoing efforts to solidify its position as a leader in the global pharmaceutical industry.
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