Hikma bolsters US injectables offering with purchase of Danish competitor

Hikma Pharmaceuticals has bolstered its US injectables capabilities by purchasing several divisions of Danish competitor Xellia Pharmaceuticals.

The company said it would pay a $135m (£106m) cash consideration upfront and an additional contingent consideration of up to $50m (£40m).

The deal, which includes a manufacturing facility in Ohio, marketing facilities and a research and development centre in Croatia, will add eight approved injectable products to the FTSE 100 pharmaceutical firm’s US portfolio and 11 pipeline products, the company said.

One of the key products acquired is Vanco Ready®, a glycopeptide antibacterial indicated in adult and pediatric patients. The portfolio also included other anti-infectives.

It should expand the group’s injectables pillar, which also includes branded and generic businesses. The company said the deal would also “significantly increase Hikma’s injectables capacity to accommodate a growing US portfolio.”

Hikma’s guidance remains unchanged in the wake of the acquisition, which the company said was still subject to approval from the US Federal Trade Commission.

Rias Mishlawi, CEO of Hikma, said: “Hikma has grown to become a top-three US supplier of sterile injectable medicines thanks to our strong record of successfully making value-enhancing acquisitions like this one. This acquisition will add significant scale to our US operations and will enhance our US injectable manufacturing capabilities and portfolio by adding complex technologies.”

Hikma’s purchase of the Xellia properties is the latest in a line of acquisitions by the pharmaceutical firm in the US market. In 2022, it snapped up US pharma company Custopharm for $375m, again in an attempt to bolster its injectables business in the US.

Dr Bill Larkins, President of Hikma Injectables, said: “This acquisition strengthens our Injectables business, and I am particularly excited by the potential to further develop our pipeline with the talented and experienced team at the Zagreb R&D facility. The combination of Xellia’s assets with our quality manufacturing expertise and strong commercial capabilities puts us in an even stronger position to serve the growing needs of hospitals and patients.”

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