Last checked at 12 Apr 2010 09:14
Hikma expands its manufacturing capabilities in Algeria
LONDON, 12 April 2010 - Hikma Pharmaceuticals PLC ("Hikma")(LSE: HIK, NASDAQ Dubai: HIK), the fast growing multinational pharmaceutical group, announces that its wholly-owned subsidiary, Arab Pharmaceutical Manufacturing Company ('APM'), has signed an agreement to acquire the 50% stake that it did not previously own in the Algerian company Al Dar Al Arabia Pharmaceutical Manufacturing Company ("Al Dar Al Arabia") from the Jordanian pharmaceutical company, Dar Al Dawa, for a consideration of $18.5 million.
Al Dar Al Arabia was established in 2005 as a joint venture between APM, a wholly-owned subsidiary of Hikma, and Dar Al Dawa. The company owns a 6,000 m2 manufacturing facility that has recently been constructed to the highest international standards and approximately 21,000 m2 of land in an industrial zone in Algiers. Once operational, the Al Dar Al Arabia plant will double Hikma's manufacturing capacity in Algeria and will provide significant scope for further expansion.
Algeria is the second largest pharmaceutical market in the MENA region. Following recent changes to regulations that encourage local production, it has become increasingly important for Hikma to expand its manufacturing capabilities in this country. The acquisition will facilitate the expansion of Hikma in Algeria and will help to meet the rapidly growing demand for high quality drugs in the MENA region.
The transaction is conditional upon the satisfaction of various legal requirements and official procedures and is expected to close at the end of June 2010. The acquisition will be funded by existing cash resources.
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About Hikma
Hikma Pharmaceuticals PLC is a fast growing multinational group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed products. Hikma's operations are conducted through three businesses: "Branded", "Injectables" and "Generics" based principally in the Middle East and North Africa ("MENA") region, where it is a market leader, the United States and Europe. In 2009, Hikma achieved revenues of $637 million and profit attributable to shareholders of $78 million. For news and other information, please visit www.hikma.com.