Hikma reiterates FY guidance amid 'strong momentum'

Hikma Pharmaceuticals said its global injectables business was "performing well", delivering "strong growth" in the US, with the group continuing to expect injectables revenue growth in the mid to high-single digits.

The FTSE 100-listed group stated its branded division was also trading strongly, benefitting from its "increasingly diversified portfolio" of high-value products focusing on chronic illnesses.

Turning to its generics unit, Hikma noted that while it continues to see "low double-digit price erosion" and "mid-single digit volume erosion" in the US, the company's actions to reduce costs and improve efficiencies had enabled it to maintain "a healthy core operating margin" in the mid-teens.

Hikma also highlighted that it had managed inflationary concerns through a "tight control of costs" and a "focus on operating efficiencies".

However, due to increasing interest rates, it now expects core net finance expense to be around $74.0m, compared to previous guidance of around $68.0m.

As of 0855 GMT, Hikma shares were up 3.43% at 1,327.0p.

Reporting by Iain Gilbert at Sharecast.com