Hikma 1st-half profits drop by 14% but revenue forecast is unchanged

Hikma Pharmaceuticals (LSE: HIK) saw its profits drop by 14% in the first half of 2016 compared to last year, but the Jordan-based drugmaker has reiterated its full year revenue guidance.

Revenue rose by 24% on the first six months of 2016 to $882 million, and the fact that core operating profit was down by $28 million to $176 million was attributed to lower contribution from specific market opportunities for the company’s generics business.

Core earnings per share, at $48.20, were 32% down on a year ago, with analysts not reacting with surprise at the drop in profits in what is expected to be a transitional year for Hikma – it managed to launch 44 new products during the period and received 182 approvals, expanding and enhancing its product portfolio.