Hikma Pharmaceuticals has established itself as a top sterile injectables manufacturer in the U.S. and is building its business in Europe. Now the London-based drugmaker is moving into Asia, picking up a production plant in Vietnam.
Hikma Wednesday said it had a deal to buy Medlac Pharma Italy Co., a Vietnamese injectables manufacturing company established a decade ago as a Vietnamese and Italian joint venture. The acquisition includes an injectables facility in Hanoi which began production in 2012.
It also includes adjacent vacant land, Medlac’s portfolio of 23 injectable products, as well as its pipeline and all employees. Its drugs include anti-infectives and cardiovascular products. Terms of the deal were not disclosed.
Hikma pointed out that Vietnam has a rapidly growing population, government healthcare reforms and has been the fastest-growing pharmaceutical market in Southeast Asia in recent years.
“Vietnam is an attractive market with significant growth potential,” Riad Mechlaoui, Hikma president of injectables, said in a statement. “We are confident that by leveraging Hikma’s global expertise, we can add significant value to Medlac’s business.”
The announcement came a day before Hikma reported earnings in which it raised its 2018 guidance and said it expected revenues from injectables to range from $825 million to $850 million and produce a core injectables operating margin of between 39% and 40%.
Some drugmakers, like Sanofi, have been manufacturing drugs in Vietnam for years while others have established themselves with manufacturing facilities more recently. In 2016, AbbVie acquired Glomed, a deal that gave the pharma giant two manufacturing facilities.