Hikma Pharma zips higher as it upgrades full-year guidance following strong first half

Middle East-focused drugmaker Hikma Pharmaceuticals PLC (LON:HIK) jumped in early deals on Wednesday as it raised its full-year guidance on the back of a strong first half of trading.

The Jordanian group said it “exceeded…expectations” in the opening six months of 2018 and was raising its full-year guidance for its two biggest divisions as a result.

Shares were up 9.2% to 1,798p shortly after the opening bell.

A supply shortage in the US meant Hikma sold more injectable opioids, while sales in the generics division were also better than originally forecast.

In total, the FTSE 250 group saw revenue rise 11% to US$989mln in the six months to June 30, while operating profits leapt more than 50% to US$174mln.

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“Our performance in the first half exceeded our expectations and we are pleased to be able to raise our guidance for both our Injectables and Generics businesses for the full year,” said chief executive Siggi Olafsson.

“The measures we have taken and investments we have made across the Group over the past year are delivering results, but we still have work to do.

“Our markets are competitive and we don’t expect the same demand for some of our injectable products to continue into 2019.”

Alongside the results, Hikma declared an interim dividend of 12 US cents per share, up from 11 cents this time last year.

Story by ProactiveInvestors