Sector News

Boehringer charges ahead with sale of U.S. generics biz with bids from Hikma, Mallinckrodt

June 30, 2015
Life sciences
Earlier this year, Boehringer Ingelheim said it was considering selling its U.S.-based generics business for up to €2 billion ($2.2 billion) to focus on branded meds. Now, Hikma Pharmaceuticals, Mallinckrodt and Perrigo are approaching the bidding table, Bloomberg reports.
 
Boehringer is considering swapping assets or selling its Roxane Labs unit, with Hikma, Mallinckrodt and Perrigo reportedly laying down proposals. A decision on the winner could be made within weeks, but the German drugmaker may still choose to hold onto the business, sources told the news outlet. While Boehringer would prefer an asset swap, that type of deal may prove more difficult than selling the business outright, they added.
 
In January, Boehringer said it had tapped Morgan Stanley to explore its options for the Columbus, OH-based Roxane Labs, but had not decided whether to move forward with a sale, company spokeswoman Kathy Vincent told FiercePharma at the time. The unit, which develops and markets Boehringer’s generic drugs and boasts about 1,300 employees, has a better track record with regulators than Ben Venue Laboratories, the troubled injectables business that Boehringer unloaded to Hikma last year. And there “may be other strategic options that can better support the already successful Roxane Labs business and its significant future potential,” Vincent said at the time.
 
Still, the company started approaching interested buyers for Roxane in April, a company spokeswoman told Bloomberg. Hikma, Perrigo and Mallinckrodt declined to comment on a potential deal.
 
A deal for Roxane Labs could mean big things for Hikma, as it looks to broaden its portfolio and build on its previous relationship with Boehringer. Last year, the Jordan-based drugmaker shelled out $300 million in cash and performance-related milestones to snag assets and injectable products from the Ben Venue unit. Hikma also bought a troubled Ben Venue plant in a separate deal, but has since gutted the facility and used the equipment in other plants.
 
Snatching up Roxane Labs could also help Mallinckrodt, Jeffries analyst Anthony Petrone said in a note to clients. Mallinckrodt is trying to bulk up in generics, and Roxane brings a portfolio of 200 oral, liquid, topical and nasal generic products to the table. And although the two have some overlap in offerings, Roxane would hand Mallinckrodt “several key products” including generic Flonase and generic oral Suboxone, Petrone said.
 
By Emily Wasserman
 

comments closed

Related News

May 15, 2022

Novo Nordisk and Flagship Pioneering announce a strategic collaboration to create a portfolio of transformational medicines

Life sciences

The companies will explore opportunities to apply Flagship’s innovative bioplatforms – an ecosystem that currently comprises 41 companies – to scientific challenges in disease areas within cardiometabolic and rare diseases and initiate research programmes based on these.

May 15, 2022

BD, Babson set sights on bringing simple blood collection into the home

Life sciences

BD is expanding its long-running partnership with the blood collection company Babson Diagnostics. The two companies have been working together since 2019 on a device that can gather small volumes of blood from the capillaries in the fingertip without requiring any specialized training, and beginning with a focus on supporting primary care in retail settings.

May 15, 2022

CSL’s $11.7B Vifor buy, 2021’s biggest biopharma M&A deal, hits antitrust delay

Life sciences

Wednesday, Australian biotech CSL said (PDF) the regulatory review of its $11.7 billion acquisition of Switzerland’s Vifor Pharma will take “a few more months,” suggesting it won’t be able to close the transaction by June 2022 as previously expected.