Shares of Hikma plunge after lowering guidance on generics

Pharmaceutical company says revenue rose to $895 million in first half of the year

London-listed Hikma is Jordan's largest drug-maker and counts the United States as its biggest market Salah Malkawi for The National

Shares of Hikma Pharmaceuticals, Jordan's largest drug-maker and the smallest pharmaceutical company in the FTSE 100, fell 8.4 per cent after the company issued a warning that growth in its generic medicine business this year would be crimped by tough market conditions.

The company said first half revenue rose 1 per cent to $895 million with the expectation that sales would end the year at the $2b mark after it lowered guidance on the prospects of its generic business.

The London-listed company forecasts generics revenue at about $620 million and core 
generics operating profit of $30 million in 2017.

Shares fell to 1,212 pence in London as 12:45 pm in Abu Dhabi.

"The group has delivered a resilient performance in the first half of 2017 in an increasingly challenging environment," said Said Darwazah, chairman and chief executive officer of Hikma.

"In the US, where competition is increasing and pricing pressure is intensifying, sales in our injectables business were resilient and we have maintained strong profitability," said Mr Darwazah, adding "tougher market conditions did, however, continue to limit growth" in the company's generics business.

Separately, the company said it had reached an agreement with Takeda Pharmaceutical Company to expand its licensing and distribution agreement with the global research and development pharmaceutical company. The deal will see Hikma take up the rights to register, manufacture, market and distribute four Takeda products in 17 Middle East and North Africa markets.