Hikma profit lower on reduced generics business

The Amman-based company reported a 14 per cent year-on-year decline in its group core operating profit to $176 million.

London-listed Hikma Pharmaceuticals expects group sales to be in the range of US$2 billion and $2.1bn for the year, attributed to growth in its injectables and branded medicine sales.

The Amman company reported a decline of 14 per cent year-on-year in its group core operating profit of $176 million because of lower contribution from the generics business. Generics generates 30 per cent of its revenue.

Revenue across the group was up by 24 per cent year-on-year to $882m in the first six months.

It launched 44 products during the first half.

“In [the Middle East and North Africa region], our focus on higher-value products and tight cost control is delivering a continued improvement in profitability, despite the significant currency headwinds in the region,” said Said Darwazah, Hikma’s chairman and chief executive.

In Mena, Hikma expects to enter Palestine through a partnership with Ramallah-based Pharmacare that would involve manufacturing and distribution of products.

In June, the company launched its Hikma Specialized Egypt unit to sell affordable oncology products in Egypt.

During the first half, it closed the acquisition of the pharma company West-Ward Columbus, formerly known as Roxane Laboratories, for $2.1bn.

Hikma shares were trading at £22.69, down 1.4 per cent from Tuesday’s close. That is up from £22.21 a year ago.


Follow The National's Business section on Twitter