Hikma, which picked up Boehringer Ingelheim's massive manufacturing facility in Bedford, OH, last year, has started stripping out the usable equipment and installing it in some of its other plants as its prepares to build its sterile injectable capacity.
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| Hikma CEO Said Darwazah |
"With the acquisition of the Bedford and Ben Venue assets, continued new product launches and our strong market positions in the US, MENA and Europe, Hikma remains well placed for future growth," Hikma CEO Said Darwazah said in a statement. Hikma is expected to update its progres when it reports earnings this week.
Hikma made its bet on the Bedford Laboratories business with a deal last July to pay $225 million upfront and up to $75 million in performance-related milestones to get a portfolio of 82 products. Hikma said today that it has started transferring an initial tranche of around 20 Bedford products to manufacturing facilities in the U.S., Germany and Portugal, and expects to begin to move them into the market by the end of this year and roll them out into 2017. It is forecasting about $150 million in additional annual revenue as a result.
The four manufacturing sites at the Bedford facility will remain dormant, but some of the equipment like lyophilizers and filling lines that are still functional are being put into plants in the U.S. and Europe "to support our future growth." Boehringer Ingelheim had actually invested $350 million in the plants after receiving an FDA warning letter in 2011 but eventually decided it was not going to be worth making the additional investments that would be required and closed the plant at the end of 2013, laying off 1,100 workers.
- here's Hikma's earnings release (PDF)