LONDON (Alliance News) - Hikma Pharmaceuticals PLC on Wednesday reiterated its guidance for 2015 as it posted a fall in pretax profit for its first half, after revenue was hit by the strength of the dollar and a good performance in Hikma's Branded and Injectibles segments was offset by a decline in its Generics segment.
Hikma continues to expect to report full-year revenue growth of around 6% at constant currency, or around 2% at actual exchange rates, assuming the high end of its guidance range for its Generics business.
For the half year to end-June, the FTSE 100 company posted a pretax profit of USD170 million, down from USD219 million a year before, as revenue fell to USD709 million from USD738 million.
Revenue in its Generics segment fell to USD79 million from USD128 million a year before. Hikma said that in the previous year it had delivered an exceptionally strong performance and that there was greater competition in the market in the first half of 2015.
In this segment gross margin fell to 60.8% from 74.2%. Depending on how quickly sales of gout treatment colchicine ramp up in its second half, Hikma said it expects this business to deliver revenue of between USD175 million to USD200 million for the full year.
This offset revenue growth in the Branded business of 9%, boosted by new product launches and a focus on higher-value products, which offset lower sales in Iraq and Libya caused by political disruptions, and an in line performance from its Injectibles business.
Hikma expects the Branded business to report revenue growth in the high single digits for the full year, and for revenue in Injectibles to be in line with 2014.
Hikma proposed an interim dividend of 11.0 cents per share, in line with the level it paid in the previous year.
In July, the company agreed to acquire Roxane Laboratories Inc and Boehringer Ingelheim Roxane Inc from Boehringer Ingelheim, the German pharmaceutical company. The company said Wednesday that this acquisition will "transform" its business in the US, and also will allow it to expand its product portfolio in other markets, particularly the Middle East and North Africa region.
"We have taken important strategic steps this year and we are very excited about the opportunities these bring to the group. Across our geographies, we have strong market positions, we are executing well and we are very confident in the outlook for 2015 and beyond," said Chief Executive Officer Said Darwazah in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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