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LONDON (Alliance News) - Hikma Pharmaceuticals PLC on Monday said trading across the majority of the business has been solid in 2015 but said its Generics division is performing below expectations due to slower-than-expected colchicine sales growth.
FTSE 100-listed Hikma said it has seen continued strong demand for its legacy products within the Generics business, with any declines in line with its expectations due to greater competition. But colchicine, its gout treatment, has suffered due to Hikma having to sell the drug under both the Mitigare brand name and as an authorised generic version.
This 'hybrid' brand strategy has meant growth in sales of the drug has been "more gradual" than expected, Hikma said, and it has cut its revenue guidance in the Generics business to USD150.0 million for the full year, down from USD175.0 million to USD200.0 million previous.
Operating profit in the Generics business also will fall, though this will be partly offset by better performances in other parts of the business, Hikma said.
Elsewhere, its Injectables business is performing well, benefiting from a strong portfolio mix, with a good operating margin expected in the second half. Hikma's Branded business is trading well across most markets, it said, though it has been hit by political disruptions and foreign currency movements in the Middle East.
"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," said Said Darwazah, Hikma's chairman and chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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