Jordanian generics drugmaker Hikma Pharmaceuticals, which is listed on the London Stock Exchange, says its strong growth across the Atlantic is going to continue following the recent purchase of Baxter Healthcare’s US generic injectables business.
The company has issued an interim statement, saying that it continues to benefit from the strength of its diversified business model reiterated its guidance for 2010 of revenue growth in the low teens and for gross margin higher than in 2009. Hikma noted that it is doing well in the Middle East and North Africa (MENA) region, where “we continue to demonstrate our position as the partner of choice” for branded generics, and especially in Algeria.
As for the company’s injectables business, sales in Europe are stable, “despite pricing pressure in our main European markets and the supplementary reimbursement scheme implemented in Germany”, and sales are picking up in the MENA region. However the business has enjoyed “particularly strong” growth in the USA, “driven by demand for our own products and for our contract manufacturing services”.
At the end of October, Hikma spent $112 million to buy the aforementioned Baxter division, an acquisition which will “transform our injectables business”, doubling total sales in the US market. It will position Hikma, through its West-Ward subsiiary, as the second largest supplier by volume of injectable generics in the USA.
The spending is unlikely to stop there and Hikma is thought to have a warchest of around $500 million for further buys. The company noted that “our financing position remains very strong, allowing us to actively pursue acquisition opportunities”.
