LONDON: Hikma Pharmaceuticals PLC, the multinational pharmaceutical company, today announced that it has completed its acquisition of Custopharm Inc. from Water Street Healthcare Partners, following approval from the US Federal Trade Commission.
As previously announced on 27 September 2021, Hikma has acquired Custopharm for an initial cash consideration of $375 million on a debt and cash-free basis, with a further $50 million in contingent consideration payable upon the achievement of certain commercial milestones.
Hikma Pharmaceuticals is the second-largest supplier by volume of generic sterile injectable medicines used by US hospitals and health care providers. The combination with Custopharm enhances Hikma’s R&D capabilities and pipeline and expands Hikma’s differentiated US portfolio to close to 130 commercialised injectable medicines – a more than fivefold increase over the last decade.
Transaction highlights and strategic rationale:
· Complements Hikma’s product portfolio and pipeline, adding up to 13 approved products and additional pipeline products
· Enhances Hikma’s R&D capabilities, adding an experienced scientific team of dedicated R&D professionals with a proven ability to develop and commercialise complex sterile injectable products and a state-of-the-art R&D laboratory in California
· Maintains Hikma’s strong regulatory track record. Custopharm has consistently obtained regulatory approval for new products with four first-to-market FDA ANDA approvals, including one CGT exclusivity for Calcitonin Salmon, which was launched in May 2021
Siggi Olafsson, Chief Executive Officer of Hikma, commented: “The acquisition of Custopharm immediately strengthens our already strong US injectables business by adding an attractive and profitable portfolio of marketed products, an exciting pipeline of future opportunities, and a first-class scientific team with a strong regulatory track record. This acquisition is highly complementary to our existing business and places us in an excellent position to better serve the growing needs of hospitals, doctors and patients. I am excited to welcome the team at Custopharm to Hikma as we continue to grow and strengthen our Injectables business.”