Hikma yesterday announced, as trading started, its H1 2018 financial results. The results have exceeded expectations, therefore the Jordan generics manufacturer’s management has improved the current year guidances, which has resulted in its shares to rise over 8% (London).
The group reported revenues of $989m in H1, that is $94m (10%) more than H1 2017. EBIT increased from 19.7% to 21.6% of revenues. Hikma’s three divisions–Injectables, Generics and Branded Drugs have shown outward signs of recovery. In announcing the results, the group’s new CEO Siggi Olafsson, in office since February, said he is very concerned–like all generics producers–about the generics’ price evolution in the US market. Moreover, the group has benefited from the shortage of Pfizer’s ibuprofen in 2018, and 2019 will be a challenging year, especially for the Injectables division, he has added. Hikma’s shares have risen 70% from the beginning of the year, taking the capitalization to GBP4.2bn.
(Source: Hikma transcripts)