Hikma raises FY guidance for generics unit following positive H1 momentum

(Sharecast News) - Pharmaceutical company Hikma said on Thursday that the group as a whole was "performing well" and had maintained the positive momentum seen in the first half, leading it to reiterate guidance for one unit and raise it on another.
Hikma said it had delivered "a good performance" in its global injectables business but noted that while it had seen the gradual return of elective surgeries in the US, it did not expect levels to return to normal until 2021.

In Europe, the FTSE 100-listed group stated it had delivered "strong growth" from its marketed products and added that new launches were are benefitting from increased demand for contract manufacturing.

Guidance for global injectables core revenues was reiterated at $950-980.0m.

Hikma's generics business was also said to have "performed well" during the quarter, with the group increasing its full-year guidance for the unit from $710-730.0m to $720-740.0m.

The company added that its branded business was also performing well, with good demand being seen across Egypt, Algeria and Saudi Arabia helping to offset some disruptions related to Covid-19. However, it did note that it may see some impact on reported revenues in the unit from negative exchange rate movements.

Chief executive Siggi Olafsson said: "The breadth of our portfolio, the flexibility of our manufacturing capabilities and the strength of our commercial and distribution channels are enabling us to supply the medicines most needed by our customers, including those used in the treatment of Covid-19.

"As a result of this solid progress, we are raising our full-year guidance for generics and reiterating our current guidance for injectables and branded."

As of 0915 GMT, Hikma shares were up 1.74% at 2,700.12p.