* H1 core operating profit up 15% to $284 million
* Raises sales forecast for two main divisions
* Signs deal to manufacture Gilead's remdesivir
* Profit tops company's expectations - CEO
* Shares jump 11%, biggest pct gainer on FTSE 100
(Writes through with Gilead deal, CEO, analyst comment and
shares)
By Pushkala Aripaka
Aug 7 (Reuters) - Hikma Pharmaceuticals raised the
sales outlook for its two main divisions on Friday after
first-half profit topped the London-listed company's
expectations, while also announcing a deal to manufacture
coronavirus treatment remdesivir.
Its shares jumped 10% to 2,373 pence by 0948 GMT, jolting
the stock to the top of the gainers list of London's blue-chip
FTSE 100 index.
The company's largest unit, which supplies needle-based
drugs primarily to hospitals, posted double-digit growth in
revenue, driven by demand for critical medicines to treat
patients infected by the new coronavirus in the United States
and Europe.
The injectables division will also take on production of
U.S. based Gilead's antiviral remdesivir at Hikma's
manufacturing facility in Portugal.
Remdesivir has been a front-runner treatment for COVID-19,
which has killed more than 800,000 people globally, as one of
the first drugs shown to be effective in countering the disease.
Several countries have approved, recommended or taken action in
support of the drug for patients with the illness.
"Today's deal with Gilead to supply remdesivir highlights
Hikma's growing strategic importance as a trusted source of
essential medicines," said a research note from Peel Hunt
analysts who have a "buy" rating on the stock.
Hikma, founded in Jordan in 1978, said it now expects 2020
revenue from the injectables business of between $950 million
and $980 million.
It said this was an increase on its previous expectation,
thanks in part to a boost from the Gilead partnership, but
didn't say what its previous expectation had been.
Stocking of medicines for intensive care during the pandemic
and longer prescriptions from doctors were a key performance
driver, especially in the months of March and April, Chief
Executive Siggi Olafsson told Reuters.
"We have delivered strong first-half results, which are
ahead of our initial expectations," Olafsson said, without
saying what those expectations had been.
Hikma also lifted sales guidance for its generics division -
which supplies to the United States - to a range of between $720
million and $760 million, versus $700 million to $750 million.
The company makes treatments including anaesthetics, pain
medications, sedatives, neuromuscular blocking agents and
anti-infectives. Most importantly it also supplies the steroid
drug dexamethasone, touted as a treatment for COVID-19 after a
UK study showed it reduced death rates by about a third in
severely ill, hospitalised patients.
Group core operating profit rose 15% to $284 million and
Hikma raised its interim dividend by 2 cents to 16 cents per
share.
(Reporting by Pushkala Aripaka in Bengaluru
Editing by Aditya Soni and David Holmes)