The deal adds R&D capabilities and capacity
Hikma Pharmaceuticals has agreed its deal with Ben Venue Laboratories, part of the Boehringer Ingelheim Group of Companies, to buy the assets of its generic injectables manufacturing site in Bedford, Ohio, US.
The Ben Venue manufacturing site includes four manufacturing plants and a Quality and Development Centre (QDC), which includes a R&D pilot plant and a team of experienced staff.
Hikma said the acquisition would significantly strengthen its R&D capabilities, support the development of a strong future pipeline and expedite the transfer and reactivation of recently acquired ANDAs.
All manufacturing at the Ben Venue site ceased in December 2013 after Boehringer Ingelheim said the costs involved in solving quality issues were unsustainable.
Hikma said that over time it would 'evaluate the potential to partially reactivate the site to support the delivery of its medium and long term growth plans'. In the short term, the company will transfer some of the equipment at the site, including lyophilisers and filling lines, to its other global manufacturing facilities in the US and Europe, significantly increasing its current injectable manufacturing capacity and capabilities.
The assets included in the deal had a book value of US$4m as at 31 December 2013.
The acquisition of the Ben Venue manufacturing site is subject to customary approvals in the US.
Said Darwazah, Chairman and Chief Executive of Hikma, said the deal will 'meaningfully enhance our R&D capabilities and enable us to significantly expand future capacity'.