Hikma Pharmaceuticals (LON:HIK) are one of the biggest movers on the stock market this morning after announcing an agreement to buy Roxane Laboratories, Inc. and Boehringer Ingelheim Roxane, Inc. from Germany’s Boehringer Ingelheim GmbH.
The deal will attempt to enlarge Hikma’s position in the US market and, according to reports, will be worth about $2.65 billion in cash and stock. The Jordanian company, which makes and markets branded and non-branded generics and injectable drugs, said the deal would make it the sixth biggest U.S. generics provider.
In a statement, the company said that it expects Roxane to achieve revenue of $725 million to $775 million in 2017, an earnings margin of about 35% over the medium term and to lift earnings per share from 2016 onwards.
Hikma are currently trading up 7.79% this morning at 2,243 per share.