Hikma To Divest Phenytoin, Promethazine Injectables To Acquire Baxter Business
This article was originally published in The Pink Sheet Daily
X-Gen Pharmaceuticals will purchase the products as part of the FTC-mandated divesture. Without the transaction, Hospira would have been the only other company that sold the two drugs once Hikma acquired Baxter's entire generic injectable business.
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Ben Venue’s shuttered Ohio plant is also slated to be part of the transaction, but Hikma’s initial focus is on moving acquired assets into its production facilities, even though the Jordan-based firm expects only limited revenue from them over the next two years.
The required divestitures are quite significant relative to the size of the transaction: this is the second-largest divesture, but only the fifth-largest merger of generic firms.
Generic giant Teva took the unusual step of disclosing the entire contents of a Jan. 31 FDA warning letter about good manufacturing process failings, as part of a Securities and Exchange Commission filing it posted online two days later.