Hikma takes stake in China's Hubei Haosun to enhance API sourcing

Fast-growing Jordan-headquartered drugmaker Hikma Pharmaceuticals (LSE: HIK) says that it has acquired a “significant,” but undiscosed minority interest in China-based Hubei Haosun Pharmaceutical through the subscription of new equity for a cash consideration of $5.0 million.

Haosun, a privately held company, develops and manufacturers niche, difficult to make active pharmaceutical ingredients (API) with a specialization in oncology APIs. Haosun operates from its state-of-the-art US Food and Drug Administration and European Union-approved facility in China’s Wuhan province and its current product portfolio and development pipeline, which covers a range of therapeutic areas, fits well with Hikma’s requirements.

Through this partnership Hikma says it gains access to a high quality, long term source of APIs, particularly in the strategically important area of oncology. The transaction demonstrates the continuation of Hikma’s strategy of enhancing its API sourcing and R&D capabilities in key product areas, the company said.