Hikma Pharmaceuticals to deliver higher than expected FY revenue

Hikma Pharmaceuticals on Friday reported a strong performance by its Injectables business ahead of the release of its 2013 results next month, which it said would now show a higher-than-expected revenue increase.The group said revenue for the 12-month period would now be around 23% above the prior year, compared to previous guidance of around 20%. The Injectables business saw revenue growth of 14% over the year, improving profitability and giving an operating margin of around 30%, driven by a particularly strong performance in the US. The Generics business is expected to deliver revenue of around $270m for the year after it benefited from strong doxycycline sales, while the Branded business performed in line with expectations, with revenue growth of around 5%. The adjusted divisional operating margin for the latter was expected to be around 24%, up more than 50 basis points from last year following its decision to cut low margin tender sales, a focus on higher value products and greater emphasis on operational efficiencies.Looking ahead, the group said: "We are confident that our Injectables business will continue to deliver strong revenue growth and an adjusted operating margin above 30% in 2014." However, it warned revenue from the Generics business would be lower in 2014 due to increased competition in the US doxycycline market.NR