Hikma unit to increase focus on contract manufacturing, aimed at alleviating US drug shortages

Jordan-headquartered Hikma Pharmaceuticals (LSE: HIK) says that its US subsidiary, West-Ward, is to focus its business development capabilities on increasing its share of the contract manufacturing market, seeing the American shortage of many generic drugs as an opportunity for the company.

Figures from the US Food and Drug Administration show that 178 drugs were in short supply in 2010 versus 61 in 2005 (The Pharma Letter May 4). The FDA more recently stated that there were now 246 drugs in short supply, and a report from a Premier health care alliance analysis, of unsolicited sales offers made by gray market vendors to hospitals, shows that the average mark-up for shortage drugs was 650%. The highest single recorded mark-up offered was 4,533% for a drug used to treat high blood pressure. Normally priced at $25.90, the offered price in this case was $1,200 (TPL August 17).

After the recent $112 million acquisition of Baxter's Multi Source Injectables business (The Pharma Letter October 29, 2010), which included the sterile injectable facility in Cherry Hill, New Jersey, West-Ward’s goal is to become one of the leading global providers of contract dosage form development and manufacturing services to the pharmaceutical and biotechnology industries.