Hikma Pharmaceuticals reports slight rise in operating profit

Jordan-based drugmaker expects revenue of US$800 million from its generics business this year.

Above, inside Hikma's laboratory in Amman, Jordan. Salah Malkawi for The National
Powered by automated translation

The full-year core operating profit at the drug maker Hikma Pharmaceuticals rose by 2.4 per cent as weakness in its generic drugs business has been more than offset by growth in its injectables and branded business.

Hikma also said it expects profitability of its generics business to significantly improve this year, driven by new product launches and an enhanced mix of sales.

The company, which makes and markets branded and non-branded generic and injectable drugs, maintained its expectation of US$800 million in revenue from the generics business.

Hikma, which bought Boehringer Ingelheim’s US generic drugs business last year, had cut its full-year revenue expectation for the business in November because of a slightly slower-than-expected ramp-up in the unit.

Hikma, based in Jordan and founded in 1978, also forecast 2017 revenue of about $2.2 billion on a constant currency basis.

The company said it expects branded revenue this year to grow in the mid-single digits on a constant currency basis, while it expects injectables revenue to be between $800m to $825m.

Core operating profit rose to $419m for the year to December 31 from $409m.

Revenue rose by 35.4 per cent to $1.95bn last year.

* Reuters

business@thenational.ae

Follow The National's Business section on Twitter