Hikma adds to stake in Promopharm; gets US appro for argatroban

Fast-growing Jordan headquartered Hikma Pharmaceuticals (LSE: HIK) says that it has increased its stake in Morocco-based Promopharm (Societe de Promotion Pharmaceutique du Maghreb) to 94.1%, adding to the 63.6% stake acquired last year (The Pharma Letter October 15, 2011).

Hikma acquired the additional 302,196 shares (representing 30.2% of Promopharm) for an aggregate consideration of $41.6 million. These shares were purchased in the open market and through a mandatory tender offer, which closed on January 6, 2012. The remaining 5.9% of Promopharm's issued share capital has been retained by existing shareholders and Promopharm will remain listed on the Casablanca Stock Exchange.

The acquisition of Promopharm, the ninth largest manufacturer of pharmaceuticals in Morocco with a 3.5% market share, will deliver a substantial local manufacturing presence in Morocco, the fourth largest pharmaceutical market in MENA, and completes Hikma’s footprint in the region, Hikma said when it acquired the near 64% holding in the company for $11.2 million. Moreover, it brings more than $45 million in annual revenue and EBITDA of $13.2 million.