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Hikma PharmaceuticalsAnnouncement

06/09/2014 20:31

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RNS Number : 2081N
Hikma Pharmaceuticals Plc
24 July 2014 
 
PRESS RELEASE 
 
Hikma agrees to acquire Ben Venue manufacturing site adding R&D capabilities
and capacity 
 
London, 24 July 2014 - Hikma Pharmaceuticals PLC ("Hikma") (LSE: HIK) (NASDAQ
Dubai: HIK) (OTC: HKMPY), the fast growing multinational pharmaceutical group,
today announces that it has agreed with Ben Venue Laboratories, Inc. ("Ben
Venue"), part of the Boehringer Ingelheim Group of Companies, to acquire
substantially all of the assets of their generic injectables manufacturing
site in Bedford, Ohio.  The acquisition is pursuant to the exclusivity
arrangement entered into on 28 May 2014.  No incremental consideration is
payable in relation to Hikma acquiring the Ben Venue manufacturing site. 
 
The Ben Venue manufacturing site includes four manufacturing plants and a
Quality and Development Centre ("QDC") with excellent capabilities.  The QDC,
which includes a R&D pilot plant and a team of experienced employees, will
significantly strengthen Hikma's existing R&D capabilities, support the
development of a strong future pipeline and expedite the transfer and
reactivation of recently acquired ANDAs. 
 
All manufacturing at the Ben Venue site was ceased in December.  Over time,
Hikma will evaluate the potential to partially reactivate the site to support
the delivery of its medium and long term growth plans.  In the short term,
Hikma will transfer certain modern, advanced equipment, including lyophilisers
and filling lines, to its other global manufacturing facilities in the US and
Europe, significantly increasing its current injectable manufacturing capacity
and capabilities. 
 
The gross assets subject to the transaction, prior to the performance of the
fair value exercise and excluding acquired intangible assets, have a book
value of $4 million. 1   The acquisition of the Ben Venue manufacturing site
is subject to customary approvals in the United States. 
 
The guidance previously provided on 28 May 2014 remains unchanged.  The
acquisition of assets of Bedford, including the Ben Venue site, is expected to
be slightly dilutive to adjusted 2  earnings per share in 2014 and 2015 and
strongly accretive to adjusted earnings per share from 2016 onwards. 
 
Said Darwazah, Chairman and Chief Executive Officer of Hikma commented: 
 
"I am very pleased to be acquiring the Ben Venue manufacturing site and their
talented R&D team.  We believe this will meaningfully enhance our R&D
capabilities and enable us to significantly expand future capacity.  This
reflects Hikma's commitment to the long term growth of our fast growing global
Injectables business and will create significant strategic value." 
 
--  ENDS  -- 
 
Enquiries 
 
Hikma Pharmaceuticals PLC 
 
Susan Ringdal, VP Corporate Strategy and Director of Investor Relations  +44
(0)20 7399 2760/ +44 7776 477050 
 
Lucinda Henderson, Deputy Director of Investor Relations                      
       +44 (0)20 7399 2765/ +44 7818 060211 
 
FTI Consulting 
 
Ben Atwell/ Matthew Cole/ Julia Phillips                                      
                          +44 (0)20 3727 1000 
 
About Hikma 
 
Hikma Pharmaceuticals PLC is a fast growing multinational group focused on
developing, manufacturing and marketing a broad range of both branded and
non-branded generic and in-licensed products.  Hikma operates through three
businesses: "Branded", "Injectables" and "Generics", based principally in the
Middle East and North Africa ("MENA"), where it is a market leader, the United
States and Europe.  In 2013, Hikma achieved revenues of $1,365 million and
profit attributable to shareholders of $212 million. 
 
 1  The book value of the gross assets in the financial statements of Ben
Venue Laboratories, Inc at 31 December 2013 
 
 2  Before the amortisation of intangibles (excluding software) 
 
This information is provided by RNS
The company news service from the London Stock Exchange