Business
Hikma enters oncology market
Hikma enters oncology market.
About this update from Hikma Pharmaceuticals Plc
[{"type":"text","content":"\n Hikma Pharmaceuticals Plc\n22 January 2007\n\n\n Hikma expands into the oncology market\n\n\nLONDON, 22 January 2007 - Hikma Pharmaceuticals PLC ('Hikma') (LSE: HIK) (DIFX:\nHIK), the multinational pharmaceuticals group, announces that it has agreed to\nacquire the entire issued share capital of Ribosepharm GmbH ('the Company' or\n'Ribosepharm'), a German oncology sales and marketing company, from Ratiopharm\nGmbH for a cash consideration of $45.0 million (€34.7 million). Completion of\nthe acquisition is expected to occur on 25 January 2007. The acquisition will be\nmade on a cash-free and debt-free basis and will be subject to certain working\ncapital and contract-based adjustments. The acquisition will be funded through\nexisting cash resources.\n\n\nRibosepharm is a well-established and successful oncology company, specialising\nin the marketing and distribution of branded generic injectable oncology\nproducts both to private practices and hospitals in Germany. The Company's\nexperienced sales force has significant market coverage of the principal\nprescribers of oncology products in Germany and its product portfolio generates\nfavourable margins.\n\n\nFor the year ended 31 December 2005, Ribosepharm had net sales of $43.2 million\n(€33.3 million) and profit before tax of $10.1 million (€7.8 million). At the\nend of 2005, Ribosepharm had total assets of $55.7 million (€42.9 million) and\ntotal liabilities of $55.7 million (€42.9 million). Based on management\naccounts, sales attributable to the products remaining in the Company following\ncompletion of the acquisition, being the core generic portfolio, are expected to\nbe approximately $24.4 million (€18.8 million) in 2006.\n\n\nSamih Darwazah, Chairman & CEO of Hikma, commented: 'The acquisition of\nRibosepharm provides us with an excellent platform from which to enter the large\nand fast-growing oncology market, which is forecast to become the second largest\nwithin the pharmaceutical industry by 2010. Ribosepharm has a strong position in\nGermany, one of the largest European oncology markets, and significant\ndistribution capabilities. We will be able to draw on its experience in the\nfield of oncology and use its expertise to expand into other oncology markets in\nEurope, as well as into the United States and the MENA region. We look forward\nto workin...