Hikma makes USD 163.6m cash offer for Arab Pharmaceutical

UK-based Hikma Pharmaceuticals has made a conditional offer to acquire Jordanian pharmaceutical company Arab Pharmaceutical Manufacturing (APM) for approximately USD 163.6m in cash.

The generics company already has a significant presence in the Middle East and North Africa (MENA) region, the US and Europe.

The APM offer is conditional upon the successful completion of due diligence and the approval of APM shareholders.

Merrill Lynch International is acting as financial advisor to Hikma for the transaction.

Hikma is currently trading at GBP 445.20 on the LSE, up GBP 0.020 or 0.04 per cent.

For H1 FY07, Hikma racked up USD 224.9m in revenue, compared with USD 154.9m in H1 FY06, a rise of 45.2 per cent. Operating profit was 51.8m, compared with USD 42.2m. Diluted EPS was USD 20.2m, compared with USD 17.2m, an increase of 17.4 per cent.

In H1 FY07, Hikma began production at its new cephalosporin plant in Portugal for the MENA region and Europe. The company also entered the injectable oncology market through the acquisitions of Ribosepharm and Thymoorgan in Germany and acquired 10 new oncology products. The company also entered the Egyptian market when it signed an agreement to acquire Alkan Pharma in August 2007.