SHARES in Hikma Pharmaceuticals were knocked yesterday despite the company recording a double-digit rise in full-year profits for 2014.
The London headquartered FTSE 100 company was founded in 1978 in Jordan and specialises in making branded and non-branded generic drugs. In 1996 it became the first Arab company to export pharmaceuticals to the US.
The company experienced a sharp decline in revenues from its generic brands, down 19 per cent, with profitability also squeezed as margins falling from 62 per cent to 52 per on the year.
Injectables was the standout sector, seeing revenues leap 33 per cent globally, driven by a 51 per cent increase in those derived from its US market.
The firm said it expected to maintain this momentum in the US market throughout this year, while further declines in the profitability and revenues of generics is set to continue.
Overall group revenue was up nine per cent in 2014 on the year at $1.5bn (£1bn) with unadjusted earnings up 11 per cent at $478m.
Shares closed down 3.15 per cent at 2,243p yesterday.