Hikma, a generics manufacturer headquartered in London, has reached an agreement to acquire a portion of Xellia’s assets in the U.S., including the production plant in Cleveland owned by the Danish pharmaceutical company.
The announcement was made in a press release issued on June 17 by Hikma, which stated that the company will pay Xellia an additional $50 million depending on conditions, in addition to the cash payment of $135 million. The transaction is contingent on receiving approval from the Federal Trade Commission.
According to the terms of the agreement, Hikma will acquire the Cleveland plant, which is equipped with end-to-end capabilities to design, produce, pack, and deliver lyophilized vials and ready-to-use IV bag goods.
The generic drug manufacturer stated its intention to invest an undisclosed amount into the facility to increase productivity through the use of automation, machinery, and updated procedures. The facility is scheduled to undergo renovations, which Hikma intends to complete within the next three years.
According to the firm, the facility has the potential to be used in the future for establishing an entrance into the CDMO sector.
Riad Mishlawi, Hikma’s CEO, said, “Hikma has grown to become a top-three U.S. supplier of sterile injectable medicines thanks to our strong record of successfully making value-enhancing acquisitions like this one. This acquisition will add significant scale to our U.S. operations and will enhance our U.S. injectable manufacturing capabilities and portfolio by adding complex technologies.”
Xellia provides Hikma with a variety of ready-to-use medications, such as Vanco Ready (vancomycin), which is used for the treatment of bacterial diseases like methicillin-resistant Staphylococcus aureus (MRSA).
Additionally, as part of the deal, Hikma acquires a research and development center in Zagreb, Croatia, along with the employees.
In 2022, Hikma made its debut in the Canadian market by purchasing the assets of Teligent, which was in the process of filing for bankruptcy. The transaction cost over $45 million and included the acquisition of 25 sterile injectable medications, three in-licensed ophthalmic drugs, and seven further items, four of which had been authorized by Health Canada and were in Teligent’s pipeline at the time.
As previously revealed, over 200 people will lose their jobs at a Bedford facility due to this agreement between the two firms. The layoffs will reportedly begin in August and are expected to be completed before the start of November.
