Hikma Pharmaceuticals announced it expects revenue to come in at the lower end of its forecast, deepening concerns over its generics business and sending shares tumbling this morning.
For the six months to the end of June, the firm's revenue increased one per cent to $895m (£695m).
Revenue growth from generics increased 34 per cent to $305m but was limited by the impact of increased competition on pricing and volumes.
Hikma's share price fell 9.37 per cent in morning trading to 1,199p.
Why it's interesting
In May, Hikma lowered guidance for its generics business from $800m to $670m, and today the company said it only expects to make around $620m from generics now.
This will cause the company's 2017 group revenue to be around $2bn, at the low end of a previous estimate of between $2bn and $2.1bn. That target was also reduced in May from $2.2bn.
The company, which makes and markets branded and non-branded generic and injectable drugs, said the "tougher" market conditions are expected to remain in the second half of the year, with continued price and volume erosion on its marketed portfolio.
However, the drop in generics revenue will be more than offset by increased demand for certain products, further portfolio optimisation and a number of new product launches, Hikma said.
The Food and Drug Administration's (FDA) rejection of its generic version of GlaxoSmithKline's (GSK) asthma drug Advair in May due "major" issues with the application also hit the company's generics business. Today the company said it was still in talks with the FDA.
What Hikma said
Said Darwazah, chairman and chief executive of Hikma, said the group gave a "stable" performance in the first half of 2017 in an "increasingly challenging environment".
We remain focused on executing our generics strategy and we have strengthened the management team and further restructured the cost base to provide a robust and efficient platform to support pipeline execution and future growth.
Across the Group, we are taking actions to deliver value from our marketed products, invest in our pipeline and enhance the efficiency of our operations, to ensure we remain well positioned for future growth.