6th Nov 2014 08:48
LONDON (Alliance News) - Hikma Pharmaceuticals PLC Thursday raised its 2014 group revenue guidance to around 7% growth, and said it was working with the US Food and Drug Administration to resolve "all outstanding" issues with its Portugal manufacturing facility "as quickly as possible".
The company had previously guided around 5% group revenue growth for 2014.
Hikma received a warning letter from the FDA in October relating to an inspection of the Portugal facility in March. At that time it said it did not expect this to impact the manufacturing or distribution of products at the facility. Earlier this year the FDA cleared its compliance warning over Hikma's Eatontown facility in New Jersey, after issuing a warning letter about the facility in February 2012, which led to the company halting production at Eatontown.
In the year to date, Hikmas said its Branded business saw good growth in Egypt and the Gulf Cooperation Council countries as it focused on newer, higher value products, but this has been offset by ongoing restructuring of its business in Algeria and political disruptions in Libra and Iraq. It continues to expect the Branded business to deliver low single-digit revenue growth for the full year, with an adjusted operating margin of around 21%.
In Injectibles, the company said it performed well, although it warned that competition is increasing in the US and it expects underlying sales in the second half to be broadly in line with the first half. Hikma raised its guidance for the business to around 25% revenue growth for 2014, with an adjusted operating margin of over 35%. It had previously guided 20%, with an adjusted operating margin of around 35%.
In Generics, Hikma said the business had continued to perform "very strongly", and it raised its revenue guidance for Generics to USD215 million for the full year with an adjusted operating margin of around 55%. It had previously guided USD200 million, with an adjusted operating margin of over 45%.
Hikma plans to announce its full-year results March 11, 2015.
Shares in Hikma are trading down 2.0% at 1,930.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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