Jordanian drugmaker Hikma Pharmaceuticals, which is listed on the London Stock Exchange, has acquired a "significant minority interest" in China’s Hubei Haosun Pharmaceutical Co.
Under the terms of the deal, Hikma has bought a stake in the privately-held firm through the subscription of new equity for $5 million in cash. As part of the partnership, it gets access to Haosun's state-of-the-art US Food and Drug Administration and European Union-approved facility in Wuhan province.
Haosun specialises in difficult-to-make active pharmaceutical ingredients with a particular focus on oncology. The companies noted that the Chinese group's current product portfolio and development pipeline, "which covers a range of therapeutic areas, fits well with Hikma’s requirements".
Last month, Hikma completed its $112 million acquisition of Baxter International's injectable generic-drug business, which will reduce reliance on the firm's key market, the Middle East and North Africa (MENA) region. In a recent interview, chief executive Said Darwazah told the Wall Street Journal that the company is keeping an eye out for other acquisitions.
He is interested in making minority investments in API companies in India and China, hence the Haosun, and also expanding the injectables businesses further. In addition, Mr Darwazah told the WSJ that he is interested in companies that gives Hikma "access to any market that we're not in", particularly in MENA or places such as Morocco, Turkey and some Commonwealth of Independent States countries.