Drugmaker Hikma to buy U.S.-based Custopharm to boost needle-based treatments

By Reuters

<div> <p> -Hikma Pharmaceuticals said on Monday it would buy U.S.-based sterile injectables firm Custopharm in a deal worth up to $425 million, as the generic medicines maker looks to strengthen its needle-based treatments unit in the United States.</p> <p>Hikma makes drugs including anaesthetics, pain medications, sedatives, neuromuscular agents and anti-infectives. The demand for these drugs shot up during the pandemic and remains strong as elective surgeries return. </p> <p>“With this acquisition, Hikma will have a differentiated US portfolio of close to 130 injectable medicines – a more than fivefold increase over the last decade,” said Riad Mishlawi, president of the injectables division.</p> <p>The company expects Custopharm to generate more than $80 million in sales this year and boost margins of its injectables business.</p> <p>Hikma in August forecast annual core operating margin in the range of 37% to 38% for its injectables business.</p> <p>The London-based company said it would pay $375 million in cash and the deal would include an additional $50 million in the form of milestone-based payments. It bought Custopharm from Chicago-based Water Street Healthcare Partners.</p> <p>Shares of Hikma were up 1.5% at 2,421 pence by 0707 <span class="caps">GMT</span>.</p> </div>