Hikma Pharmaceuticals PLC (AIM:HIK, OTC:HKMPF) announced it has agreed to acquire US-based generic sterile injectables producer Custopharm Inc. for US$375mln.
It will pay the full amount in cash to the current owner, Water Street Healthcare Partners, with an option for a further US$50mln based on the achievement of certain commercial milestones.
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Custopharm currently markets its products in the US through its commercial arm Leucadia Pharmaceuticals.
Since partnering with Water Street in 2015, it has received 13 US approvals, with four first-to-market Abbreviated New Drug Application (ANDA) approvals, including one with Competitive Generic Therapy (CGT) designation and one novel 505(b)(2) NDA approval. It is based in Carlsbad, California, and has 39 employees.
Hikma said the acquisition will complement its injectable product portfolio as well as enhancing its R&D operations.
Custopharma is expected to add US$80mln in annual revenue and to boost Hikma's injectables operating margin.
Shares rose 1% to 2,414p on Monday at the opening bell.