Hikma says acquisitions, recovery of generics business to help achieve 2015 growth forecast

Jordanian drug maker Hikma Pharmaceuticals reiterated its full-year revenue growth forecast of 6 per cent on the back of acquisitions and recovery in its generics and Mena markets.

The London-listed drug maker forecasts its generics business to post full-year revenue in the range of US$175 million to $200m, depending on the sales performance of colchicine, a gout medication, in the second half of this year.

Hikma reported a 4 per cent decline in first-half revenue to $709m compared with the year-earlier period due to lower earnings from its generics business. Profit attributable to equity holders fell 21 per cent to $134m in the first half, compared with the year-earlier period.

“Good growth in the profitability of the branded business and a slight increase in the profitably of the injectables business was offset by the lower contribution from specific market opportunities for the generics business, as expected,” said Hikma.

The company last month agreed to acquire the US generic drugs business of German Boehringer Ingelheim for $2.65 billion as Hikma seeks to bolster its US and generics market share.

Last year, Hikma bought the assets of Bedford Laboratories, an Ohio-based maker of injectable drugs, for $300m, also from Boehringer Ingelheim.

Hikma’s results were impressive, according to global investment banking firm Jefferies.

“In our recent upgrade, we had highlighted our view that first half was irrelevant given strong upcoming growth prospects from 2016, and we expect the market to look beyond a second half weighted year to these future value drivers,” Jefferies said in a report on Wednesday.

Hikma’s shares rose 4.3 per cent to 2503 pence in afternoon trading in London on Wednesday.


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