Hikma lifts forecasts on surge in generics sales

 
City A.M. Reporter
HIKMA Pharmaceuticals raised its full-year revenue forecast for the third time in four months yesterday, riding on strong sales of generic antibiotic doxycycline, a drug used to prevent and treat malaria and other infections.

The company, which makes and sells both patented and generic drugs, said it expected total revenue to rise 20 per cent in 2013, up from its previous forecast of 17 per cent.

Group revenue increased by an annualised 19.9 per cent to $638.3m (£407m) in the six months ended 30 June, with earnings before interest, tax, depreciation and amortisation (Ebitda) jumping over 76 per cent from the same time a year earlier, to $182.6m.

There is a shortage of doxycycline in the United States due to manufacturing issues, according to the US Food and Drug Administration. The regulator said demand for the drug has increased due to shortage of substitute drugs. Hikma’s generics arm “is benefiting from exceptional sales of doxycycline”, chief executive Said Darwazah explained.

Hikma’s shares shot up more than three per cent yesterday morning, but deflated along with the rest of the market to end up 0.46 per cent at 1,095p.

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