Hikma Pharmaceuticals PLC, the multinational pharmaceuticals group, has agreed to acquire the entire issued share capital of Alkan Pharma an Egyptian pharmaceuticals company, for a cash consideration of $60.5 million (EGP 342 million). The acquisition is scheduled to complete in the second half of 2007, subject to meeting certain regulatory requirements. The acquisition will be funded entirely by debt.

Alkan develops, manufactures and markets generic pharmaceuticals in both solid and liquid form for the Egyptian market. Alkan has 175 registered pharmaceutical products, including nearly 60 products under license from leading multinational pharmaceutical companies. In addition, the company has 140 products pending registration. Alkan's product portfolio spans a number of therapeutic categories, including Alimentary and Metabolic, Musculoskeletal and Infectious Disease.

Alkan's substantial sales and marketing infrastructure, which includes more than 200 sales and marketing staff, operates across Egypt and has excellent relationships with distributors, doctors and pharmacists. The company's manufacturing facilities operate at a very high standard and are routinely audited by local Egyptian health authorities as well as by its multinational licensing partners.

Alkan has grown sales by 18 per cent and 34 per cent in the past two years, respectively, with net sales in 2006 of $14.6 million (2005: $10.9 million) and profit before tax in 2006 of $3.5 million (2005: $1.5 million).

Said Darwazah, CEO of Hikma commented, "Alkan's local manufacturing capabilities, strong product portfolio and registration pipeline, together with its significant sales force, provides Hikma with an excellent platform from which to access the large and growing Egyptian market. Alkan offers a strong commercial and distribution platform from which to introduce Hikma's branded generics into the Egyptian market and adds a broad product portfolio and pipeline that can be leveraged into Hikma's existing markets. Alkan has a strong management team and we look forward to working with them to build Hikma's presence in the Egyptian market."