Jordanian Hikma Pharmaceuticals Buys American Drugmaker for $2.65 Billion
- Jordan based Hikma Pharmaceuticals
- German drug maker Boehringer Ingelheim’s U.S. generic drugs company
- Hikma, founded in 1978 in Amman, Jordan announced that the deal should close in on the fourth quarter and will boost revenues from the year after
- About $1.18 billion will be paid in cash, while %16.71 of its issued share capital will be issued for Boehringer’s Roxane Laboratories Inc and Boehringer Ingelheim Roxane Inc
To cut it short
Hikma’s chief executive had quoted that Roxane presented a huge opportunity for growth in the US market. The purchase price was roughly 10 times Roxane’s estimated earnings before interest, tax, depreciation and amortization for the year 2017. Hikma agreed to make cash payments up to $125 million based on the achievement of performance milestones.