Hikma Pharmaceuticals, a multinational pharmaceutical group, has agreed to acquire Boehringer Ingelheim Roxane and Roxane Laboratories from Boehringer Ingelheim. Roxane is a well-established U.S. specialty generics company with a highly differentiated product portfolio and best-in-class R&D capabilities.

Hikma will pay gross consideration of $1.18 billion in cash and will issue 40 million new Hikma shares to Boehringer (representing approximately 16.71% of Hikma’s issued share capital immediately following closing and admission). The gross consideration payable on closing is approximately $2.65 billion. Hikma also has agreed to make contingent cash payments of up to $125 million, subject to the achievement of certain performance milestones.

The transaction adds significant breadth to Hikma’s U.S. portfolio, bringing 88 highly differentiated products in specialized and niche segments of the market, including oncology, respiratory, extended release and controlled substances. It enhances Hikma’s pipeline, adding 89 R&D projects, including 57 Paragraph IV products, 13 of which are first-to-file opportunities.