Hikma Pharmaceuticals Eyeing $1 Billion Bid For U.S. Rival CorePharma LLC
September 29, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Hikma Pharmaceuticals, a biopharmaceutical company focused on cost-effective medicines in therapeutic areas, is allegedly looking to buy CorePharma, its U.S.-based rival. Sources report that the company is willing to put up to $1 billion into the purchase, reported the Sunday Times.
CorePharma LLC, which is owned by RoundTable Healthcare Partners, was put up for sale in August. Now Hikma is allegedly one of the front running bidders for the company. Barclays and HSBC are rumored to be involved to provide debt financing for Hikma is a deal is agreed upon, although neither Hikma nor CorePharma would comment on the situation.
Hikma Acquires Manufacturing Site
Before the CorePharma rumors began swirling, Hikma was already working on expanding its network of manufacturing sites. On Sept. 17, Hikma announced that it had acquired all of the assets of the manufacturing site originally owned by Ben Venue Laboratories. This news came after an agreement was made to move forward with the acquisition on July 24. Hikma will transfer modern, advanced equipment to the site to increase capacity at other manufacturing facilities in the U.S. and Europe.
As part of that deal Hikma would receive four manufacturing plants and a Quality and Development Center as a part of the acquisition deal. The Quality and Development Center includes a research and development plant, which will help with Hikma’s pipeline.
"I am very pleased to be acquiring the Ben Venue manufacturing site, which will significantly enhance our research and development capabilities and enable us to expand future capacity,” commented Said Darwazah, chairman and chief executive officer of Hikma. “This reflects our commitment to the long term growth of our global Injectables business and will create significant strategic value."
Growing Revenue
On Aug. 20, Hikma revealed its interim results, which showed its progress for the six months that ended on June 30. The group revenue increased by 16 percent to $738 million, and net cash flow from operating activities jumped to $200 million. Its revenue from Global Injectables also grew 41 percent, and the company’s overall achievements were underlined by strong growth in the U.S. as a whole.
“I am very pleased with our first half results, which reflect strong underlying performances in our businesses and our success in capturing a number of specific market opportunities,” said Darwazah at the time.