Jordan's Hikma upgrades 2013 guidance

Jordon-based Hikma Pharmaceuticals (LSE: HIK) has issued an upgraded guidance for 2013, saying that its generics business has continued to benefit from strong doxycycline sales. “Given the excellent performance of doxycycline, we are raising our full year guidance for this business to revenue of around $200 million with a reported operating margin of above 30%,” the company said.

Hikma said it remained focused on the remediation of Eatontown facility and is slowly reintroducing products to the market. The branded business remains on track to meet the current full year guidance of around 9% revenue growth (11% in constant currency), with adjusted operating margin in line with 2012. Due to the timing of shipments, branded revenue growth is expected to be stronger in the second half of the year. Moreover, it noted, the injectables business has continued to perform well, driven by strong performances in the USA and Europe.

Overall, Group revenue is expected to grow by around 17% in 2013, up from our previous guidance of around 13%. Said Darwazah, chief executive of Hikma, commented: “We are performing well across all of our businesses and I am pleased to be able to raise our Group guidance for the full year once again. Overall, our diversified business model is positioning the Group to deliver another strong year in 2013.”