Hikma expands into the oncology market
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- Published on Thursday, 25 January 2007 02:00
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LONDON, UK | Jan 22, 2007 | Hikma Pharmaceuticals PLC (“Hikma”) (LSE: HIK) (DIFX: HIK), the multinational pharmaceuticals group, announces that it has agreed to acquire the entire issued share capital of Ribosepharm GmbH (“the Company” or “Ribosepharm”), a German oncology sales and marketing company, from Ratiopharm GmbH for a cash consideration of $45.0 million (€34.7 million). Completion of the acquisition is expected to occur on 25 January 2007. The acquisition will be made on a cash-free and debt-free basis and will be subject to certain working capital and contract-based adjustments. The acquisition will be funded through existing cash resources.
Ribosepharm is a well-established and successful oncology company, specialising in the marketing and distribution of branded generic injectable oncology products both to private practices and hospitals in Germany. The Company’s experienced sales force has significant market coverage of the principal prescribers of oncology products in Germany and its product portfolio generates favourable margins.
For the year ended 31 December 2005, Ribosepharm had net sales of $43.2 million (€33.3 million) and profit before tax of $10.1 million (€7.8 million). At the end of 2005, Ribosepharm had total assets of $55.7 million (€42.9 million) and total liabilities of $55.7 million (€42.9 million). Based on management accounts, sales attributable to the products remaining in the Company following completion of the acquisition, being the core generic portfolio, are expected to be approximately $24.4 million (€18.8 million) in 2006.
Samih Darwazah, Chairman & CEO of Hikma, commented: “The acquisition of Ribosepharm provides us with an excellent platform from which to enter the large and fast-growing oncology market, which is forecast to become the second largest within the pharmaceutical industry by 2010. Ribosepharm has a strong position in Germany, one of the largest European oncology markets, and significant distribution capabilities. We will be able to draw on its experience in the field of oncology and use its expertise to expand into other oncology markets in Europe, as well as into the United States and the MENA region. We look forward to working with Dr. Kudielka, Ribosepharm’s Managing Director, and his experienced team.”
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Hikma Pharmaceuticals PLC is a multinational pharmaceutical group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed pharmaceutical products. Hikma’s operations are conducted through three businesses: Generic, Branded and Injectable Pharmaceuticals. Hikma’s operations are based principally in the United States, the Middle East and North Africa ("MENA") region and Europe. In 2005, the Group had revenue of $262 million and profit attributable to shareholders of $44 million. At 31 December 2005, the Group had over 1,800 employees. For news and other information, please visit www.hikma.com.
SOURCE: Hikma Pharmaceuticals PLC