Hikma buys Boehringer injectable drugs business for up to $300 mln

LONDON Wed May 28, 2014 7:26am EDT

LONDON May 28 (Reuters) - Hikma Pharmaceuticals said on Wednesday it had agreed to acquire assets from the U.S. generic injectable drugs business of Germany's Boehringer Ingelheim for up to $300 million, boosting its presence in the injected medicine market.

London-listed Hikma will pay $225 million upfront for the assets of Boehringer's Bedford Laboratories and a further $75 million subject to the achievement of performance-related milestones over a period of five years.

In addition, Hikma has entered into an exclusivity arrangement with Boehringer to potentially acquire substantially all of the assets of the Ben Venue manufacturing facility in Bedford, Ohio.

The German company tapped Bank of America Merrill Lynch last December to explore a possible sale of its generic sterile injectable drugs business, following a series of manufacturing problems.

Ben Venue announced in October that it was ceasing production due to quality control issues and said it was "exploring strategic options" for its Bedford Laboratories business.

Hikma said its move would help to address critical drug supply shortages in the U.S. market through the planned re-introduction of products. (Reporting by Ben Hirschler; editing by Sarah Young)