Baxter to sell US generic injectables business to Hikma
Includes products to treat chronic pain, plus anti-infectives and anti-emetics
US healthcare company Baxter International has agreed to sell its US generic injectables business to Jordan-based multinational group Hikma Pharmaceuticals for approximately US$112m.
Baxter said the sale of this business would allow it to concentrate on its proprietary, enhanced packaging offerings and formulation technologies. The company expects to record an after-tax special charge in the third quarter of approximately US$70m to write down the assets of the business.
Hikma is buying Baxter’s high-volume, generic injectable products in vials and ampoules, which are sold primarily in the US. They include products to treat chronic pain, as well as anti-infective and anti-emetic products.
Hikma said the acquisition would position the company as the second-largest injectables supplier in the US with a combined market share of more than 15%. The Baxter generic injectables business reported sales of approximately US$170m in 2009.
The Cherry Hill, NJ, manufacturing facility, and Memphis (Southpoint), Tennessee warehouse and distribution centre will be included in the transaction. Approximately 750 employees will also transfer to Hikma.
‘The divestiture of this business is driven by Baxter’s continued focus on differentiated product offerings derived from the company’s formulation technologies and enhanced packaging expertise,’ said Camille Farhat, general manager of Baxter’s Pharmaceuticals and Technologies business.
Baxter’s generic injectables business will be integrated into West-Ward Pharmaceuticals Corporation, the US agent for, and wholly owned subsidiary of, Hikma Pharmaceuticals.
West-Ward, based in Eatontown, NJ, has a growing portfolio of generic products in the US, including ‘dozens of products commercially available and under development’.
Subject to regulatory approvals and other conditions, the companies expect to complete the transaction within the next three months.
Baxter purchased the Cherry Hill manufacturing facility in 2002, when it acquired the business from ESI Lederle, a division of Wyeth.