Hikma H1 operating profit drops but FY revenue guidance reiterated

Hikma Pharmaceuticals reported a jump in first-half revenues but a drop in operating profit, as it reiterated its full-year revenue guidance.

In the six months to the end of June, core revenue rose to $882m from $709m, but operating profit slipped to $176m from $204m due to a lower contribution from specific market opportunities for the generics business compared with the first half of 2015.

The company declared an interim dividend of 11 cents per share, in line with the dividend in the same period last year.

During the period, Hikma launched 44 products and received 182 approvals. It also completed the West-Ward Columbus acquisition, making significant progress with integration and on track to deliver cost synergies.

The company said it continues to expect revenue in 2016 to be in the range of $2bn to $2.1bn in constant currency, including the contribution of ten months of revenue from West-Ward Columbus, with continuing momentum into 2017.

Chief executive officer and chairman Said Darwazah said: “Hikma has delivered a solid first half performance in a transitional year. Our global injectables business is performing well, with revenue growth and strong profitability driven by a favourable product mix.

“We continue to successfully transfer the Bedford products to our injectables facilities. By re-introducing these products to the market and increasing our investment in R&D, we are building a strong pipeline to support future growth.”