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Drugmaker Hikma's full-year core operating profit rises 2.4 percent

Published 15/03/2017, 07:54
© Reuters.  Drugmaker Hikma's full-year core operating profit rises 2.4 percent
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(Reuters) - Drugmaker Hikma Pharmaceuticals Plc (L:HIK) said its full-year core operating profit rose 2.4 percent as weakness in its generic drugs business was more than offset by growth in its injectables and branded business.

Hikma also said it expects profitability of its generics business to significantly improve in 2017, driven by new product launches and an enhanced mix of sales.

The company, which makes and markets branded and non-branded generic and injectable drugs, maintained its expectation of $800 million in revenue from the generics business.

Hikma, which bought Boehringer Ingelheim's U.S. generic drugs business last year, had cut its full-year revenue expectation for the business in November, due to a slightly slower-than-expected ramp-up in the unit.

Jordan-based Hikma, founded in 1978, also forecast 2017 revenue of about $2.2 billion on a constant currency basis.

The company said it expects branded revenue in 2017 to grow in the mid-single digits on a constant currency basis while it expects injectables revenue to be between $800-$825 million.

Core operating profit rose to $419 million for the year ended Dec. 31 from $409 million.

Revenue rose 35.4 percent to $1.95 billion in 2016.

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