Ben Venue's Bedford Labs Business to be Purchased by Hikma Pharmaceuticals
Ben Venue, which is based out of Bedford, Ohio, has lined up a buyer for its generic injectable drug business. Hikma Pharmaceuticals PLC of London has agreed to purchase Bedford Laboratories for an amount that could reach $300 million.
Approximately 100 Ben Venue employees are assigned to the Bedford Labs business. Hikma says it is planning to retain "a number of employees across key business functions".
Bedford Labs owns the third-largest portfolio of generic injectable products in the U.S., says the release. When the deal closes, Hikma will acquire Bedford Labs portfolio of 84 drugs. It is also purchasing 27 drug candidates that Bedford Labs is developing, including 16 that are awaiting approval from the U.S. Food & Drug Administration.
Due to manufacturing issues at the Bedford plant last year, those drugs generated only $19 million in sales. Hikma estimates that this figure will rise to about $150 million by 2017. Products marketed by Bedford Labs will be made at existing Hikma plants in the U.S., Germany, and Portugal.
Ben Venue has spent hundreds of millions of dollars attempting to fix its problems, and according to the company it stood to lose another $700 million over the next five years if it kept going.
Under the terms of the deal, Hikma will pay Ben Venue $225 million cash for Bedford Laboratories, and could pay another $75 million over the next five years if it hits specific performance-related milestones.