Hikma Pharmaceuticals has agreed to purchase Roxane Laboratories and Boehringer Ingelheim Roxane (together Roxana) from Boehringer Ingelheim for around $2.65bn.

Established in 1885 as The Columbus Pharmaceutical Company, Roxana is a US specialty generics firm that includes differentiated product portfolio.

Under the deal, Boehringer will receive $1.18bn in cash from Hikma, in addition to its 40 million new shares.

The agreement will also allow Boehringer to receive contingent cash payments of up to $125m, based on the achievement of certain performance milestones.

Hikma said in a statement: "Boehringer’s investment in Hikma’s shares at a 13% premium to the current share price reflects their confidence in the value creation potential for them as long-term shareholders."

Hikma Pharmaceuticals CEO Said Darwazah noted: "Roxane’s impressive portfolio, attractive pipeline and R&D expertise, focusing on higher value, niche and differentiated products, will create a platform for sustainable long-term growth."

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The acquired business is expected to improve Hikma’s presence in the US generics market through the addition of 88 differentiated products in specialised and niche segments, comprising oncology, respiratory, extended release and controlled substances.

"Boehringer’s investment in Hikma’s shares at a 13% premium to the current share price reflects their confidence in the value creation potential for them as long-term shareholders."

It will also enhance Hikma’s pipeline by adding 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities.

Roxane has a manufacturing facility in Columbus of Ohio, which is involved in producing solid, liquid, dry powder inhaler and nasal spray dosage forms, as well as high-potency products, technically complex formulations and controlled substance drugs.

Boehringer Ingelheim managing directors board chairman professor Andreas Barner said: "Through this agreement, Boehringer Ingelheim will have a vested interest in Hikma and its significant potential, while focusing on growing our global core businesses as a research-driven pharmaceutical company."

Subject to approval by Hikma’s shareholders, the deal is expected to complete in the fourth quarter of this year.

The transaction follows the recent announcement by Israel’s Teva Pharmaceuticals to acquire the generics business of Allergan for about $40.5bn.

Image: Hikma to acquire Boehringer’s specialty generics firm Roxana. Photo: courtesy of ponsulak/