Hikma announces revised terms for Roxane Labs

Following receipt of new financial performance information from Boehringer Ingelheim, Jordon-based drugmaker Hikma Pharmaceuticals (LSE: HIK) said today that is revising the terms of the acquisition of the family-owned German pharma major’s Roxane Laboratories unit.

Under an amendment agreement to the Acquisition Agreement signed today, the parties have agreed to reduce the purchase price. Under the revised terms, on closing, Hikma will pay gross consideration of $647 million in cash as opposed to $1.18 billion, a reduction of $535 million. Hikma will issue 40,000,000 consideration shares, which is unchanged from the number agreed last year (The Pharma Letter July 28, 2015).

Based on the new information, Hikma now expects that Roxane's unaudited revenue for 2015, rather than being slightly higher than 2014, was around $650 million. When taken together with the increased expenses, this has led to a weaker outturn than achieved in 2014.