Hikma Pharmaceuticals trims guidance on generics business

Hikma Pharmaceuticals said most of its businesses have performed well in the year to date, although the generics division is currently below its expectations due to slower-than-expected growth in colchicine sales.

The company said it continues to see good demand for legacy products in the generics business. However, the need to shift towards a hybrid brand and generic strategy for its gout medicine, colchicine, has led to a more gradual growth rate in sales of the drug.

As a result, Hikma lowered guidance for the generics business to revenues of around $150m, down from a previous range of $175m to $200m.

It also said operating profit will fall, but this will be partly offset by the stronger performance in other parts of the business.

Hikma said the injectables business is continuing to perform very well, benefiting from its strong portfolio mix.

The branded business is also performing well across most markets, with growth in the year to date driven by a recovery in Saudi Arabia and other GCC markets, as well as strong growth in Egypt.

Chairman and chief executive officer Said Darwazah said: “We are delivering strong growth in most of our MENA markets in constant currency and achieving excellent profitability in our Injectables business whilst continuing to drive value from the legacy products in our generics business.

“We remain focused on penetrating the colchicine market and we are confident that we can successfully grow our market share in the coming year.”