Hikma raises guidance following strong first-half; makes acquisition

London-listed Jordanian drugmaker Hikma Pharmaceuticals (LSE: HIK) today reported a strong set of interim results for the six months ended  June 30, 2019, lifting the firm’s shares 6.98% to 1,969.50 pence by mid-morning.

Hikma also announces that it has signed an asset purchase agreement with Insys Therapeutics (Nasdaq: INSY) to acquire a complementary manufacturing platform and two pipeline products. Hikma has agreed to acquire unit-dose nasal and sublingual spray manufacturing equipment, as well as two pipeline products, naloxone 505(b)2 nasal spray and epinephrine 505(b)2 nasal spray.

Hikma posted group revenue of $1,047 million in the first half of the year. Group core revenue grew 7% to $1,043 million, reflecting strong sales of the firm’s in-market products and new product launches. Group core gross profit increased 10% to $544 million, primarily due to the strong growth of the Generics business. Group core gross margin was 52.2% (H1 2018: 50.6%).