Hikma pulls gout tablets from US market

Jordan-based pharmaceuticals firm Hikma has sorted out its dispute with Mutual Pharmaceutical relating to the sale of oral colchicine tablets.Hikma's subsidiary and US agent, West-Ward Pharmaceutical, has discontinued its sales of oral colchicine until approval of its New Drug Application by the US Food and Drug Administration (FDA).The decision leaves Mutual Pharmaceutical's Colcrys product as the only FDA-approved oral colchicine product on sales in the US,Hikma has previously indicated that it expects at least 20% revenue growth for its US generics business for the full year 2010 and stands by this forecast despite the suspension of sales of oral colchicine. It continues to expect its core US generics business to perform well in 2011.Earlier this month brokers had a mixed reaction to news of the FDA's concerns about oral colchicine products to treat gout."We see no reason to alter our forecasts or thesis which remain intact, preferring instead to use any weakness as a buying opportunity for a stock that is a main player of one of the most lucrative pharmaceutical markets globally," said Panmure Gordon. KBC Peel Hunt was less bullish, believing the shares overreacted to exceptional revenue-driven upgrades and "are now moving toward a more realistic level". It rates the stock a "hold".Numis Securities calculated that about $30m of Hikma's sales in the first half were attributable to colchicine, generating gross profits of up to $25m.