Hikma Pharma shares plunge despite posting solid first-half 2017 growth

Shares of Jordan-based Hikma Pharmaceuticals (LSE: HIK) dropped 11.8% to £11.75 in early London trading today, after it reported its interim results for the six months ended June 30, 2017 and expansion of a marketing deal with Japan’s largest drugmaker.

Group revenue of $895 million was up 1% in the first half of 2017 and 5% higher in constant currency, reflecting the consolidation of an additional two months of West-Ward Columbus and continued Injectables growth, partially offset by lower Branded revenue.

Group core operating profit of $176 million was in line with first-half 2016 and up 3% in constant currency, with a good improvement in Generics profitability, offset by a weaker Branded performance, the company noted. Group core basic earnings per share of 45.4 cents were down 6% and 3% lower in constant currency due to the issuance of 40 million new shares to Boehringer Ingelheim in the first half of 2016 as part of the consideration for the West-Ward Columbus acquisition.