Hikma Pharmaceuticals PLC · LSE:HIK
Hikma Pharmaceuticals — Merger or Acquisition (October 2010)
14 slides from Hikma Pharmaceuticals's merger presentation, Oct 29, 2010
Slide 1: Transforming our global Injectables business
HIKMA PHARMACEUTICALS PLC Transforming our global Injectables business 29 October 2010
Slide 2: Disclaimer
■ This document, which has been issued by Hikma Pharmaceuticals PLC (the “Company”), comprises the written materials/slides for a presentation. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or publis
Slide 3: Transaction highlights - A significant opportunity
Transaction highlights - A significant opportunity ■ Acquisition of Baxter Healthcare Corporation’s US generic injectables business* for a cash consideration id ti off $112 million illi ■ Brings close to $180 million in annual revenue, significantly enhancing the scale and scope of Hikma Hikma’s s g
Slide 4: Overview of the Multi-Source Injectables business
Overview of the Multi-Source Injectables business(1) ■ Holds a unique and attractive position in the US injectables market Leading g injectables j position ■ #2 by volume in generic injectables and DEA controlled substances ■ Broad injectable portfolio including excellent critical care products and
Slide 5: Brings scale to our Injectables business and our US operations
Brings scale to our Injectables business and our US operations Hikma 2009 standalone revenue by segment Hikma 2009 pro-forma revenue by segment Generics Generics 21% 17% Branded 44% $636 9 million $636.9 illi $806.6 $806 6 million $806.6 million Branded Injectables 55% 23% Injectables 39% *Multi-Sou
Slide 6: Brings scale to our Injectables business and our US operations
Brings scale to our Injectables business and our US operations Hikma 2009 standalone revenue by geography Hikma 2009 pro-forma revenue by geography US 24% US 40% MENA Europe $636 9 million $636.9 illi $806 6 million $806.6 illi 50% 13% MENA 64% Europe 10% 5
Slide 7: Positions Hikma as the second largest injectables supplier in the US
Positions Hikma as the second largest injectables supplier in the US Top US injectables companies (million eaches) DEA controlled substances market share (units) 100% 600 90% 41 7% 41.7% 80% 500 70% #2 400 60% 50% 300 40% 15.7% 14.4% 200 13.3% 30% 20% 100 5.2% 4.9% 4.0% 4.0% 2.1% 1.4% 1.3% 1.2% 10%
Slide 8: Improves access to a large, expanding market with substantial revenue opportunity
Improves access to a large, expanding market with substantial revenue opportunity US injectables market sales growth Upcoming injectables patent expiries $bn $bn $5.0 $4.5 $4.1 $4 0 $4.0 $3.9 $4.0 $3.5 $3.1 $3.2 $3.0 $3 0 $3.0 $3.0 $2.6 $2.5 $2.2 $2.0 $2 0 $2.0 $1 5 $1.5 $1.4 $1.5 $1.0 $1.0 $0.5 $0.
Slide 9: Adds a high quality, complementary injectables portfolio
Adds a high quality, complementary injectables portfolio Top therapeutic areas Hikma Multi-Source Injectables Pro-forma Antibiotics 9 9 9 Anti-cholinergics 9 9 9 Anti-convulsants 9 9 9 Anti-emetics 9 9 9 Anti-hypertensive 9 9 Anti-psychotics 9 9 Cardiac Agents 9 9 CAN Agent 9 9 Diuretics 9 9 Hematol
Slide 10: Increases Hikma's high quality injectables manufacturing capacity and distribution capabilities
Increases Hikma’s high quality injectables manufacturing capacity and distribution capabilities ■ 372,000 sq. ft. facility in Cherry Hill, NJ Cherry Hill facility ■ Manufacture of sterile injectables Ampoules Vials ■ High speed/high volume liquid filling Large Vials Ampoules S ll Vials Small Vi l ■
Slide 11: Brings a well qualified and experienced sales team with excellent customer relationships
Brings a well qualified and experienced sales team with excellent customer relationships ■ First class team of more than 20 sales professionals will complement Hikma’s existing sales team and deepen territory coverage ■ Existing contracts cover 80% of all hospital based pharmaceutical purchases in t
Slide 12: Synergy opportunities
Synergy opportunities Cost synergies Revenue synergies ■ Operating efficiencies through centres of ■ Increased sales and marketing excellence capabilities ■ Greater manufacturing and distribution ■ Reactivation of several ANDAs capacity utilisation ■ Enhanced potential of R&D pipeline ■ Scale benefi
Slide 13: Transaction summary
Transaction summary Transaction ■ PPE, inventory, intellectual property and existing contracts structure Transaction price ■ Consideration of $112 million, satisfied in cash Funding ■ Existing cash resources and new debt facilities Synergies ■ Scope for revenue and cost synergies Accretion ■ Earning
Slide 14: A transformational deal
A transformational deal ■ Significantly enhances the scale and scope of Hikma’s global Injectables platform, bringing a broad product portfolio and best in class manufacturing facilities ■ More than doubles the size of Hikma Hikma’s s overall US business business, adding scale and strengthening Hikm
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