* Core operating profit of $566 mln vs consensus of $574 mln
* 2021 outlook weaker than analyst expectation
* Shares drop nearly 7%
(Recasts, adds shares, CEO and analyst comments)
By Tanishaa Nadkar and Pushkala Aripaka
Feb 25 (Reuters) - Hikma Pharmaceuticals shares
tumbled by as much as 8%, becoming the biggest loser on London's
FTSE 100 index on Thursday, after falling short of
analysts' average expectations for 2020 profit and gave guidance
for weak 2021 figures.
Reporting a 2020 core operating profit of $566 million,
Hikma missed a consensus forecast for $574 million.
The company expects mid-single-digit revenue growth in 2021
for its needle-based drugs' injectables division, and sales
between $770 million and $810 million at its generics business,
with growth seen in its branded drugs division as well.
However, analysts pointed to a shorfall of 5-9% in its
guidance for the generics business and low core earnings per
share, based on the overall sales guidance.
Shares in the company, founded in Jordan in 1978, were 7%
down at 2,252 pence by 1019 GMT.
Hikma, which is producing U.S.-based Gilead's
COVID-19 drug remdesivir and supplies many generic drugs
including pain medications, anaesthetics and sedatives, has seen
a mixed effect from the COVID-19 pandemic.
While hospitals and patients around the world have delayed
elective surgeries, the company's injectables division has been
helped by demand for some products used in the treatment of the
illness caused by the novel coronavirus.
However, as countries globally roll out COVID-19
immunisation campaigns, demand for COVID-19 related products
will go down, Chief Executive Officer Siggi Olafsson told
Reuters, adding that he encouraged employees to get vaccinated.
"When COVID-19 cases start to go down, my expectation is
that elective surgeries will pick up again. So it is neutral for
the business," Olafsson said.
He also said that going forward, Hikma might have more
inventory on hand as a result of the pandemic as customers are
concerned about the supply situation.
Hikma also said that it expects to resume the launch of its
generic version of GSK's Advair Diskus in the United
States as soon as the regulator completes a review, having
paused last month.
(Reporting by Tanishaa Nadkar in Bengaluru; editing by
Uttaresh.V & Simon Cameron-Moore)