Hikma Pharmaceuticals has posted a strong set of results for the first half of 2014 but is predicting a tougher rest of the year for its branded drugs business due in part to political turmoil in Sudan, Iraq and Libya.
The Jordan-headquartered company, which is listed on the London Stock Exchange, saw group revenues rise 16% to $738 million, while adjusted profit attributable to shareholders rose 44% to $176 million. The rises were driven by a 41% jump in turnover for Hikma’s injectables business to $346 million, due to a strong performance in the USA.
The latter unit is expected to keep growing, boosted by Hikma’s recent acquisition of Bedford Laboratories, Boehringer Ingelheim’s US generic injectibles business and manufacturing operations in Ohio.
Sales at Hikma’s branded drugs business inched up 1% to $259 million. Good performances in Egypt and Saudi Arabia were offset by lower-than-expected sales in Algeria (due to restructuring) and in Sudan, Iraq and Libya due to escalating political disruptions. Turnover was down 3% to $128 million at Hikma’s generics arm.
Chief executive Said Darwazah said the results “reflect strong underlying performances in our businesses and our success in capturing a number of specific market opportunities”. Despite problems in the Middle East and North Africa, “our businesses across the region remain well-positioned to drive future growth.”
