Fundamentals Are Strong, page-38

That's the initial consideration. After later reports from the parent company showed that sales for FY17 would be $US700 to $US750, the purchase agreement let Hikma renegotiate the cash upfront down by $US550m... from I think the initial agreement of $1.1B.

So final price for Roxanne was $2.1B, at operating margin of 35% like you quoted up there, that's EBIT of .35*700 = $US245m, or 8.6 P/EBIT.

Maybe paid practically $AUD1B [when you include the transaction, working capital, technical transfer] for a portfolio with FY17 sales of $US237m. EBITDA margin at 50% [they reckon] put earnings at $US118.5.

At current exchange rate, that's price of $US780m to $US118.5 or 6.58.

So it's cheaper on that PE measure. Here's the BUT...

Hikma's purchase only dilute its ownership b 16.7% compare to Mayne's issuing the equivalent of some 80% of existing shares.

Hikma immediately become the top 6 generic company vs Mayne's top 25.

Pipeline potentials of some US41b vs $US7b.

Get the labs, the R&D team and continued shared interests from the seller.