Hikma Bolsters Injectable Portfolio With $375M Custopharm Acquisition

Hikma Pharmaceuticals Plc HKMPF has agreed to acquire US-based generic sterile injectables producer Custopharm Inc from Water Street Healthcare Partners.
Hikma will pay an initial cash consideration of $375 million, with an option for a further $50 million based on the achievement of certain commercial milestones.
Custopharm currently markets its products in the US through its commercial arm Leucadia Pharmaceuticals.
Since partnering with Water Street in 2015, it has received 13 US approvals, with four first-to-market Abbreviated New Drug Application (ANDA) approvals, including one with Competitive Generic Therapy (CGT) designation and one novel 505(b)(2) NDA approval.
The acquisition will add 13 products bringing Hikma's US portfolio of close to 130 injectable medicines.
Custopharm is expected to add $80 million in annual revenue and boost Hikma's injectables' operating margin.
Price Action: HKMPF stock closed at $34.25 on Friday.