Hikma to buy Boehringer's Bedford Labs unit for $300 million

Jordon-based drugmaker Hikma Pharmaceuticals (LSE: HIK) has signed an asset purchase agreement with Ben Venue Laboratories, a member of Germany’s Boehringer Ingelheim group, to acquire assets of Bedford Laboratories, its US generic injectables business.

The total consideration for the purchase is up to $300 million, which will be satisfied through an upfront cash payment of $225 million, with a further $75 million in contingent cash payments, subject to the achievement of performance-related milestones, over a period of five years. In addition, Hikma has entered into an exclusivity arrangement with the Boehringer Ingelheim group to potentially acquire substantially all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio, USA, one of the largest sterile injectable manufacturing sites in the world.

Will strengthen Hikma’s position as a leading generic injectables company in the USA