Hikma updates revenue guidance after US delays asthma drug approval

Pharma group Hikma has updated its guidance on full year revenue to be $2bn - $2.1bn in constant currency after last week's delay of an application for its asthma drug by US regulators.

The revision reflects changes in the outlook for Hikma's generics business, where it has revised expectations for the launch timing of its generic version of Advair Diskus and where it is experiencing increased price erosion on marketed products.

Hikma shares fell sharply last week after its asthma drug's second application was turned down by US regulators due to "major" issues with the application.

The company said it maintained its full year guidance for its injectables with revenue at $800m-$825m.

In the branded division Hikma said revenue would to grow “in the low-single digits” in 2017 and core operating margin would be broadly in line with 2016.

“This reflects an adverse currency impact, primarily arising from the devaluation of the Egyptian pound against the US dollar by approximately 51%,” Hikma said.

Broker Numis said consensus forecasts had come down since the US decision "but will need to come down further given the increased pressure on the US generics business".

"The shares trade in line with global peers on our downgraded EPS estimates, with Hikma's strategic value in injectables and branded in the Middle East and North Africa potentially offering upside to the shares that have underperformed significantly since the acquisition of Roxane."