Boehringer Ingelheim Roxane, Inc.

February 10, 2016 By Alex Keown , BioSpace.com Breaking News Staff LONDON -- Jordan-based Hikma Pharmaceuticals reduced its offer to acquire Roxane Laboratories Inc. and Boehringer Ingelheim Roxane Inc. from Boehringer Ingelheim by nearly half after receiving lower than expected data about Roxane’s 2015 financial reports, the company announced. These lower than expected financial reports caused Hikma’s board of directors to reevaluate the deal due to the numbers having “an impact on Roxane’s outlook for 2016 and 2017.” Hikma said it anticipates Roxane’s total revenue for 2017 will be between $700 million and $750 million, rather than the previous expectation of $725 million and $775 million for 2017. Based on the new financial data the companies agreed to lower the upfront gross cash consideration by $535 million, Marketwatch reported this morning. Hikma adjusted its offering to “gross consideration of $647 million in cash as opposed to $1.18 billion,” the company said in a statement. The stock portion of the deal originally agreed upon will remain the same. Boehringer told Reuters it confirmed the detail of Hikma’s statement and that the revised deal was still “the right decision for both companies”, but declined to provide any additional comment. In July, Hikma announced it would buy Boehringer Ingelheim’s U.S. specialty generic drugs business for about $2.65 billion in cash and stock to bolster its presence in the United States. The deal was expected to make Hikma the sixth-biggest generics provider in the United States. Hikma said it expects close to 20 launches from the Roxane pipeline in 2016 and 2017, including some potentially substantial market opportunities. In addition, Hikma said it expects an “improved product mix in 2017, resulting from the successful commercialization of Roxane’s differentiated pipeline and the reduction in the supply of lower-margin products to Boehringer Ingelheim and its affiliates.” “We remain very excited about the strategic and financial value of this acquisition, which will transform our position and scale in the U.S. generics market. Whilst there will be a short term impact related primarily to higher than expected product rebates, we have agreed a reduced purchase price to reflect this, and we remain confident in our outlook for the business. Roxane’s impressive, differentiated product portfolio and pipeline, along with its manufacturing capacity and technological capabilities will create a strong platform for sustainable long-term growth and substantial value for shareholders,” Said Darwazah Hikma’s, chief executive officer said in a statement. In addition to the changing terms of the deal, Hikma was also successful in navigating its multiple dose vials of neostigmine methylsulfate injection, through U.S. regulatory hurdles. The U U.S. Food and Drug Administration approved the drug in January and Hikma said it anticipates a quick launch in the U.S. The injection is a cholinesterase inhibitor, used for reversal of the effects of non-depolarizing neuromuscular blocking agents after surgery. In November, the FDA approved Hikma’s injectable phentolamine mesylate for the prevention or control of hypertensive episodes that may occur in patients with pheochromocytoma, as a result of stress or manipulation during preoperative preparation and surgical excision. The drug is indicated for the prevention or treatment of dermal necrosis.

June 30, 2015 By Riley McDermid , BioSpace.com Breaking News Sr. Editor Boehringer Ingelheim is talking to Hikma Pharmaceuticals about selling its Roxane Laboratories, Inc. unit, as other rumored suitors Mallinckrodt Plc and Perrigo Company look on uneasily, Bloomberg News reported this week. The sale would include manufacturing and supply chain affiliate, Boehringer Ingelheim Roxane Inc. , as well as Roxane Labs itself. Citing people familiar with the matter, today’s report said that Hikma could spend as much as $2.2 billion on Roxane , which had already been identified as a target for the Hikma by analysts since early last spring. The article’s sources said the deal could be financed via cash and asset or swaps, or both. Boheringer has already confirmed it began shopping Roxane to potential buyers in April. They have declined to comment further on the process or interested parties. Bloomberg said the German drugmaker will likely announced the winning bidder in a matter of weeks, if it decides to sell Roxane definitively. Morgan Stanley is said to be the bookrunner on the sale. Any buy up of Roxane would be just one more deal to add to the scorching pace of dealmaking in biotech this year. There has been a flurry of large pharmaceutical companies snapping up smaller startups and entities, including Pfizer Inc. ’s $17 billion merger agreements with Illinois-based Hospira, Inc. , or Amgen ’s acquisition of Onyx Pharmaceuticals, Inc. for $10 billion in 2013. That’s added up to an estimated $100 billion spent on pharmaceutical mergers and acquisitions since 2014, and more than 245 deals this year alone. Pharma has responded by enlisting more executives with backgrounds in M&A, like Robert L. Rosiello , who took over the role of chief financial officer at Canadian drugmaker Valeant Pharmaceuticals International, Inc. in mid-June. Before coming to Valeant , Rosiello spent 30 years at McKinsey & Company helping healthcare, technology and consumer companies deliver growth through mergers and acquisitions. With continued growth in bolt-on acquisitions, and a sector that’s grown more than 500 percent in three years, it is clear Big Pharma has a need for someone with Rosiello’s background. After Bristol-Myers Squibb Wonder Drug Meets Endpoints, Will FDA Process Be Up to Snuff? Our most popular story last week was about a new wonder drug that wowed the FDA . An experimental anticoagulant drug under joint development between Portola Pharmaceuticals, Inc. , Bristol-Myers Squibb Company and Pfizer Inc. met all primary and secondary endpoints in a Phase III study determining safety and efficacy—and our readers responded. The hope now is it will be sped to patients as fast as possible. That’s lead BioSpace to ask, what do you think about the drug approval process in this country? Let us know your ideas. var _polldaddy = [] || _polldaddy; _polldaddy.push( { type: "iframe", auto: "1", domain: "biospace.polldaddy.com/s/", id: "after-bristol-myers-wonder-drug-meets-endpoints-will-fda-process-be-up-to-snuff", placeholder: "pd_1435601218" } ); (function(d,c,j){if(!document.getElementById(j)){var pd=d.createElement(c),s;pd.id=j;pd.src=(' '==document.location.protocol)?' ':' ';s=document.getElementsByTagName(c)[0];s.parentNode.insertBefore(pd,s);}}(document,'script','pd-embed'));